SME Financing Difficulties

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

In China, apart from some common reasons, it is difficult to find some special reasons in the period of "emerging plus pition", such as the lack of government system and the low credit level of enterprises.

The two articles in this topic are analyzed from different angles, and it is proposed that we should solve problems, establish a guarantee mechanism, form a joint effort of the government, and increase the strength of venture capital.

The gem, which is being vigorously promoted, is also expected to help part of this problem.

In recent years, the total volume of loans in China has surged and the economy has been warming up.

However, some people in financial circles also reflected that in the first quarter loans, only 25% of the short-term loans were mainly for small and medium enterprises, and in February, it was significantly reduced by 300 billion yuan compared with January.

At present, there are more than 4000 SMEs and individual businesses in China, creating nearly 6 of the total GDP and nearly 5 of the tax revenue, attracting 90% of urban employment.

Small and medium-sized enterprises are the cornerstone of the development of large enterprises. Why are the "active cells" driving the economy out of the financial crisis?

In recent days, when interviewed dozens of small and medium-sized enterprises and financial institutions in Jiangsu and Shaanxi, the financial difficulties of SMEs have existed for many years, and the modern service industry such as textile, agriculture and other people's livelihood industries, such as software, Internet and other modern service industries, have long and few loans.

And the international financial crisis has brought trade and export processing enterprises into the abyss of loans.

"Textile industry loans are not overnight, because the industry's average profit margin is low, less than 3%."

Xiao Jinwen, general manager of Mao Tai factory in Jiangyin, Wuxi, said that in addition to very few listed companies and local support backbone enterprises, more than 90% of the textile enterprises had difficulty in obtaining loans. When they were in tight funds, they mainly rely on large enterprises to make loans.

"Textile industry loans interest only a few points, and even in the downturn of the real estate industry there are more than ten points, banks of course tend to the latter."

"The software industry has many fist products, because there is no good financing and development environment, and finally aborted."

Zhang Xiaodong, executive director of China Software Industry Association and President of Jiangsu new thinking software company, said that small and medium-sized software enterprises need capital for every step of their growth, and they often die when they do not breathe.

Zhang Xiaodong, who has worked with banks for many years, thinks that the software industry is essentially "relying on the human brain to make money, and the human brain is not reliable". The value of software is changing all the time. Once problems arise, banks will lose money.

Therefore, the bottleneck of software enterprises' loan is the lack of asset mortgage.

In the Internet industry, good companies do not need loans because they have venture capital, poor loans and less money. Banks think they will burn money and not make money.

China manufacturing network president Shen Jinghua said.

Hu Guanghui, President of Jiangsu 365 network company, said: "small businesses in the Internet industry have been trying to get around the mouse like a mouse before gaining venture capital."

It is the rule of small and medium-sized enterprises that "three years and a small year and five years is a big challenge".

Owing to difficulties in lending to banks, some enterprises can only borrow money by underground banks or pawnshops.

A business official in Shaanxi said, "in order to save money, usury is common.

Usury monthly interest 5%, borrow 1 million yuan a year also interest 600 thousand yuan.

Not only is the interest rate high, but also the lenders have many dark backgrounds, and the risks are too high.

It has been more than 10 years since the financing of SMEs has been more than five years old. Now it is even more serious than before. Yu Xuejun, director of the Jiangsu banking regulatory bureau, believes that our country is not short of funds. But from the perspective of the loan structure of the first quarter, the currency is mainly between large state-owned projects and banks, and the financing difficulties of SMEs have not been solved.

Yu Xuejun said that in the 30 years of reform and opening up, China has set up a mode of external demand pulling growth, with an extraversion of the economy reaching 40%.

The financial crisis has led to a sharp decline in external demand, which has created the ultimate market impact on China's exports.

Since the beginning of last year, many small and medium-sized enterprises in the East have been very difficult. The enterprises with good returns have been paying back their loans and shrinking their businesses.

"At present, corporate prudence and bank credit co-exist."

There are many obstructions in the financing chain of small and medium-sized enterprises. The financing difficulties of small and medium-sized enterprises are also related to many obstructions on the financing chain. There are industrial barriers in the economic downturn period, as well as obstruction in guarantee links and obstruction in social capital input channels.

Liu Changji, vice president of Jiangsu bank, said that the industry development has its own cycle, and the more the industry is in its low point, the greater the risk of loans.

The bank itself is also an enterprise. From its own interests, it will strictly control the credit of the industry. Banks will always impose strict limits on one industry.

Last year, in the metallurgical, textile, automobile, foreign trade and other industries that entered the valley under the financial crisis, all industry losses could appear. "Who dare to lend them to them?"

The guarantee industry is an important part of solving the financing difficulties of small and medium-sized enterprises.

But under the impact of the financial crisis, many small businesses have gone bankrupt, Guarantee Corporation has suffered heavy losses, and a number of them have disappeared.

Nantong City Guarantee Industry Association, a responsible person said.

According to the investigation of Nantong banking supervision department, from January 2008 to September, there were 17 compensation agencies that had worked with banks in Nantong. The total amount of compensation was 65 million yuan, up 2.2 times compared with the same period last year.

The normal Guarantee corporation operation is difficult to sustain, and the usurious companies with the sign of Guarantee Corporation have earned money.

At present, there are 78 Guarantee Corporation in Nantong, of which 70% do not do credit guarantee business, but rely on disguised deposits, loans to engage in "money" business, to make profits for private financing guarantee, so that small and medium-sized enterprises add insult to injury.

"High-tech enterprises are powerful weapons to fight against the financial turmoil. Now venture capital funds and social capital are not lacking, but they just can't find the right investment targets."

Guo Shungen, Secretary General of Jiangsu Venture Capital Association, said that the state has preferential policies for small and medium-sized enterprises in the field of high and new technology, and 70% of investment can be tax deductible for hi-tech enterprises.

There are tens of thousands of small and medium-sized enterprises in Jiangsu, but only more than 1000 high-tech SMEs are identified by science and technology departments, and more than 200 venture capital companies are available. There are too few enterprises available for Vc firms to choose.

In the past, many bank personages introduced the cost of borrowing and lending. It is difficult for SMEs to solve their financing problems.

Small and medium enterprises loan risk assessment is large, and the management cost after loan is high.

Wei Zhenhao, manager of Nanjing Xuanwu sub branch of Huaxia Bank, said: first, the loan risk of small and medium enterprises is the risk of pre assessment. First, it is not strong enough to resist risks and the average life expectancy is only 3-5 years. Two, the credit level is low, the quality of business owners is uneven, tax evasion is widespread, most accounts are false, the real business situation is difficult to understand clearly, and three, there is a general lack of collateral.

Wei Zhenhao said that at present, small and medium-sized joint-stock banks are mainly lending to SMEs.

The small bank itself is not enough, a branch usually twenty or thirty people, and the small and medium-sized enterprises in the jurisdiction as many as tens of thousands of households, how can it be done?

The same is to do business loans, to do a small business, a few hundred thousand a year, and a big business is a tens of millions of loans a year.

The risk of big business is not bigger than that of small enterprises, and the energy consumed by credit officers is the same. Of course, they are willing to choose bigger enterprises.

"Although banks have set up small business loan departments in recent years, they really spend a lot of energy to do so."

Yu Zhiqiang, deputy governor of Nanjing bank, said.

The Bank of Nanjing is a bank specializing in small and medium-sized enterprises. At present, the audit pass rate of small enterprises has reached 50%, close to the international advanced level.

"With the increase in small business loans, we find that the manpower and financial resources we spend are very large," he said.

Yu Zhiqiang said that not only is the cost of pre marketing and risk control high, but also the cost of management and settlement after loan is high.

Before the loan, in order to find out the situation of the enterprise, the bank should equip the full marketing personnel and install the information system of the small business loan.

Because small businesses can not cope with trivial taxes, false accounts are widespread.

After the loan, banks are very strict in the verification and accountability of bad loans.

The bank is now asking for accountability and dealing with people in case of an accident.

From the practice point of view, the small enterprises' non-performing loans have the most loopholes, many of which are difficult to find by credit officers.

Many bank personages reflect that small business loans are not only costly, but also less efficient than government or state-owned enterprises.

Being a big government background project will enable banks to develop rapidly and risk less.

"Each bank's goal is bigger and stronger, and small and medium enterprises' loans will do more, which will limit their development."

The reporter understands that solving the financing difficulties of small and medium-sized enterprises needs the progress of the market environment, and can not be separated from the credit information system, tax system, and government service functions.

The industry believes that China should vigorously promote the construction of multi-level financing services system for small and medium-sized enterprises.

The first is banks to develop a mechanism to protect SMEs' loans.

From a banking perspective, it is necessary to establish a mechanism to protect SME loans.

It is suggested that the management departments should limit the proportion of loans that banks need to make loans to SMEs, appropriately relax the tolerance rate of non-performing loans of small businesses in banks, formulate more flexible special management methods, and guide bank loans to small and medium-sized enterprises.

The two is multi sector policy to form a resultant force.

Many departments in China have preferential policies for small and medium-sized enterprises, including the NDRC, the Ministry of finance, the Ministry of industry and information, the Banking Regulatory Commission and so on. However, these policies have not been implemented very much, and have not formed any resultant force. Even the owners of enterprises are hard to understand.

Ministries and commissions should set up coordination mechanism for small and medium-sized enterprises, enhance the unified support of policies, and introduce practical financial preferences.

The three is to inject funds into SMEs through government purchases.

23% of the share of US government procurement must be given to small and medium enterprises, and 20% of large enterprises will be allocated to SMEs.

China should formulate policies for purchasing small and medium-sized enterprises.

It not only gives financial support to small and medium-sized enterprises, but also guides the development direction of enterprises.

The four is to explore the mechanism of intellectual property mortgage loan.

In recent years, the number of intellectual property in China has increased rapidly, but the efficiency of intellectual property is low, and patent evaluation is a weak link.

The patent assessment and mortgage in the United States also form a scale, which is worthy of our reference.

Five is to increase investment in venture capital.

The government set up a venture capital fund to attract private capital to participate. The government guaranteed its profits and increased its attractiveness.

Establishing a multi-level capital market, building a OTC market for scientific and technological enterprises, and promoting equity trading.