Solving The Financing Predicament Of Small And Medium Sized Enterprises

Small and medium-sized enterprises are trapped in the internal and external situations.

PPI continues to be high, labor costs rise, and costs are difficult to pfer effectively under price control, which compresses the profit margins of small and medium-sized enterprises.

The subprime mortgage crisis led to a decline in external demand, and crude oil, iron ore, grain and other commodity prices soared. The accelerated appreciation of the renminbi weakened the market competitiveness of products and worsened the living environment.

In desperation, small and medium-sized enterprises have been moved out, or forced to cut production or stop production, or even some of them are on the verge of collapse.

There is a view that the responsibility of SMEs' survival crisis lies in banks, and financing bottlenecks are the biggest survival threats for SMEs.

Objectively speaking, under the tight monetary policy, the central bank has implemented the quota control over loan delivery, and the trend of limited loan resources to large enterprises is very obvious.

In addition, most banks have become publicly owned listed companies. The pressure of shareholders' pursuit of repayment also forces banks to pay attention to the comprehensive yield of loans, and the business strategy of banks to abandon small and medium-sized enterprises and protect big enterprises is naturally understandable.

And direct financing, SMEs are more difficult to dominate.

Most of the small and medium-sized enterprises are in the initial stage of growth. The market prospect has greater uncertainty, and the corporate governance structure may also be flawed. This determines that only a very small number of small and medium-sized enterprises can become the lucky ones in the capital market.

As for the issuance of corporate debt financing, excessive debt ratio and too small scale of operation, it is difficult to meet regulatory requirements, but also difficult to get investors' recognition.

In the face of financing difficulties, small and medium-sized enterprises are forced to turn to underground banks and bear up to 70% of annual interest.

I think, to solve the financing difficulties of small and medium-sized enterprises, we have to start with the bank, the most fundamental is to change the bank's risk and income expectations.

Specifically, the following aspects can be considered: first, the introduction of option loans.

Small and medium-sized enterprises generally have large risks, but their growth is good.

In addition to the demand for liquidity, SMEs also have longing for medium and long-term loans.

Banks are reluctant to issue long-term loans because of their risk management considerations.

Therefore, consideration can be given to introducing options in medium and long term loans, giving banks the right to choose the option of pferring creditor's rights to equity within a certain period of time, that is, an option that can be executed immediately after reaching certain exercise conditions.

The above arrangements can not only allow banks to share the opportunities for rapid growth of enterprises, but also allow banks to withdraw early and reserve space and freedom.

Second, it is necessary to vigorously develop credit intermediaries such as Rating firm and Guarantee Corporation in the absence of credit records and limited collateral.

Credit Rating firm can help banks establish the identification and entry and exit mechanism of SME standardization, reduce the cost of bank risk management, and improve the efficiency of loan delivery.

Guarantee corporation can make up for the deficiencies of SMEs' collateral, help banks share part of the market risk and improve the matching level of risks and benefits.

Third, the loan amount for small and medium enterprises is allocated.

The central bank should conduct the necessary window guidance to commercial banks, and cut out the amount of loans for small and medium-sized enterprises from the total loan amount of 3 trillion and 600 billion yuan, and request that they should not pfer their use.

Insufficient part can consider introducing entrust loan mechanism.

As a trustee, banks are entrusted with putting the surplus funds of the society into small and medium enterprises that meet the loan conditions, and uniformly stipulate the upper limit of the interest rate for entrusted loans, so as to reduce the financing cost of SMEs as far as possible.

Fourth, give full play to the positive role of the government.

On the one hand, the government can promote the establishment of a financing platform such as the SME loan promotion association, and implement a certain degree of tax relief and partial discount on loans to small and medium-sized enterprises with strong innovation capability, competitive products, good market prospects, and in line with the direction of energy saving and emission reduction and the direction of national industrial development, and encourage enterprises to become bigger and stronger.

On the other hand, the government can selectively accelerate the release of small and medium board IPO, and explore innovative ways such as SME asset securitization, issuing SME bonds.

What is worth noting is that some commercial banks and regulators have begun to take action.

In the first half of this year, ICBC invested 164 billion 900 million yuan in loans to SMEs, and the financing balance of SMEs increased by 30 billion yuan compared with the beginning of the year.

The Shanghai Banking Regulatory Bureau requires the support of small and medium-sized enterprises with high market, efficiency and high technology content. We should use various support platforms including guarantee and trust to meet the liquidity requirements and medium and long-term credit demand of SMEs.

As long as we face up to the financing difficulties of small and medium-sized enterprises, it is probably not far away from the system, innovation and supervision to solve the dilemma.