How to fill in the reasons of agricultural financing demand

The reasons for agricultural financing demand are as follows

(1) The uncertainty of the development of small agricultural enterprises. Generally, small agricultural enterprises have small scale of operation, no standardized modern enterprise management system, imperfect management and financial systems, and low knowledge and education level of employees. Because its management has no strict enterprise system guarantee, its management foundation is fragile, its ability to face risks is poor, and it is easily disturbed by the external environment. There are many uncertain factors in the process of business development, which bring great risks to the financing of small agricultural enterprises.

(2) The credit rating of small agricultural enterprises is generally low. Most small agricultural enterprises in China have low annual output value, poor reputation, low average profit level, irregular enterprise management and low management level. Some business operators sometimes evade bank debts due to their low level of knowledge and education and weak credit awareness, which has a negative impact on the social credit system, making the credit rating of small agricultural enterprises generally low. In the existing enterprise credit evaluation system of banks, "business scale" or "business strength" is the main evaluation standard, while small agricultural enterprises are at a disadvantage in business scale and business strength, so this evaluation system is very unfavorable to small agricultural enterprises.

(3) Lack of credit guarantee mechanism Mortgage and guarantee are important tools for financial institutions to protect their own interests when providing loans to small agricultural enterprises. At present, China has not established a complete and effective mechanism to provide credit guarantee for their loans. There are obvious defects in the design and application of the credit guarantee system for small agricultural enterprises, which are not only too small in overall strength and insufficient in ability, but also prominent in operation, structure and function, which seriously restricts its due function.

(D) Lack of financial intermediaries The development of China's financing market is uneven. On the one hand, financial companies and investment institutions still have a lot of money. On the other hand, it is more difficult for small and medium-sized enterprises to borrow money, and there is a situation in which shortage and surplus coexist. With the reform of credit cooperatives and the merger of cooperative banks and local commercial banks, their lending targets have also been greatly adjusted, and their main service targets have turned to large enterprises, squeezing the financing channels of small and medium-sized enterprises. Grass-roots banks do not have the right to approve loans for small agricultural enterprises, and the recovery of creditor's rights after the restructuring of commercial banks also makes small agricultural enterprises face greater financing pressure.

Moreover, the financial service function of rural areas is not as good as that of cities as a whole, and it can not provide good support for agricultural enterprises in policy. In addition, the defects of agricultural enterprises themselves have also led to the current situation of financing difficulties. To solve this problem, we must improve the function of village banks and improve the competitiveness of agricultural enterprises.