Comparison Of Financing Methods For Small And Medium Sized Enterprises Abroad

The financing difficulty of small and medium-sized enterprises is a worldwide problem.

The problem of funds in small and medium-sized enterprises is more complex in China, which is manifested in the difficulty of financing as well as the abnormal phenomenon of seemingly excessive liabilities.

The sources of financing for small and medium sized enterprises in foreign countries are the following: one is self financing, two is direct financing, three is indirect financing, and the four is government support funds.

About self financing.

It covers a very wide range, mainly the owner's own funds; venture capital funds; business financing funds; credit loans between enterprises; loans from small and medium-sized enterprises; and loans from social funds.

About direct financing.

It refers to channels for raising funds to the public in the form of bonds and stocks.

About indirect financing.

It mainly includes short and medium and long term loans.

The main ways of lending are mortgage loans, secured loans and credit loans.

Different types of enterprises have different financing requirements, and different types of SMEs have different financing characteristics. Of course, the requirements for financing channels and conditions are different.

From the perspective of financing, SMEs can be divided into manufacturing, service, hi-tech and community types.

Different types of SMEs have different financing characteristics and requirements.

Comparing the financing policies of small and medium-sized enterprises, the government's financial support is an important part of the source of funds for small and medium-sized enterprises.

In the light of the situation of various countries, the government's financial support usually accounts for about 10% of the foreign capital of the small and medium-sized enterprises, and how much is decided by the relative importance of various countries to SMEs and the tradition of corporate culture of all countries.

The main ways of financial assistance to SMEs are: 1, tax incentives.

In developed countries, corporate tax generally accounts for 40-50% of the added value of enterprises.

Under the progressive taxation system, the tax burden of small and medium-sized enterprises is relatively light, but it also accounts for about 30% of the added value, and the burden is still heavy.

In order to further reduce the tax burden, various countries have adopted a series of measures.

2, financial subsidies.

The application of financial subsidies is to encourage SMEs to absorb employment, promote technological progress of SMEs, and encourage SMEs to export.

3, loan aid.

The main ways for the government to help SMEs obtain loans are loan guarantee, loan discount, direct government concession loan and so on.

4, venture capital.

Countries such as Europe and the United States are mostly founded by the private sector, while Japan and other countries are mainly established for the government.

5, encourage small and medium-sized enterprises to directly raise funds in the capital market.

In order to solve the problem of direct financing of small and medium-sized enterprises, some countries explore and develop the "second sector" to provide direct financing channels for small and medium-sized enterprises, especially small and medium-sized enterprises of science and technology.

The Enlightenment of China's foreign experience to China is to establish a normal financing system and channels for SMEs with Chinese characteristics, improve our government's financial support policy system, learn from advanced experience abroad, and put forward the following suggestions: 1, further speed up the construction of modern standardized enterprise system, and also the natural direct financing rights of the company's small and medium-sized enterprises in line with the operation mechanism of the market economy.

2, set up specialized financial institutions for small and medium-sized enterprises to encourage SMEs to establish mutual financial organizations.

3, establish a "second plate market" that is in line with China's national conditions.

4, encourage entrepreneurs from small and medium enterprises to borrow money from friends and family.

5, we should establish and improve the policy support system for small and medium-sized enterprises from various aspects such as taxation, financial expenditure, loan assistance and direct financing.

6, according to the national conditions, we should select the key support points for small and medium-sized enterprises.

7, to establish a conciliatory policy for SMEs to exit smoothly.