Financing from financial institutions (indirect financing)

Government loans

Special bank loans

my country has implemented financing for small and medium-sized enterprises since the late 1980s. Support policies for enterprise loans have successively launched special science and technology loans such as education special project, Huanghuaihai special project, 863 special project, and Torch special project. From the overall situation, there are common problems with small and medium-sized enterprise loans. First, there are many loans and a small amount of single loan. , the demand for funds is urgent, and most of the loan recipients are enterprises engaged in low-level production and general trade, mainly in RMB, and the loan terms are mostly short-term loans; secondly, the business scale of enterprises is small, their own funds are insufficient, and the technical content of their products is low. They are not of high quality, lack market competitiveness, are vulnerable to market impact, and have unstable operations; thirdly, most small and medium-sized enterprises are collective and private, and their management quality is relatively low, they are highly adaptable, and their financial systems are not standardized enough; In addition, some companies have poor credit and weak awareness of loan repayment, and debt evasion often occurs. At the same time, it is difficult for most small and medium-sized enterprises to provide collateral that meets the mortgage conditions, so the loan mortgage rate is low, which increases the risk of the loan and makes it difficult to implement the three credit checks and supervision. As a result, the non-performing loan ratios of small and medium-sized enterprises are higher than the average non-performing ratio, the credit ratings of small and medium-sized enterprises are declining year by year, and the loan environment continues to deteriorate.

We have also seen that in recent years, the quantity, quality, and importance of my country's small and medium-sized enterprises in the national economy have increased year by year. Among the industrial enterprises independently accounted for in 1997, there were nearly 50 small and medium-sized enterprises. million, accounting for 98.5% of the total number of independent accounting enterprises; corporate assets totaled 5,020.2 billion yuan, accounting for 52% of the total assets of independently accounting industrial enterprises; liabilities totaled 3,418.1 billion yuan, accounting for 52% of total liabilities. However, compared with The corresponding credit share provided by small and medium-sized financial institutions is only equivalent to 30% of the total credit. Analyzing statistical data from some typical regions, it was found that the asset profit rate of 603 private enterprises began to exceed the average level of enterprises, and the asset-liability ratio was lower than the average level, but the credit support strength (expressed by the current year's loan balance/the current year's total assets) was low. . If banks support private enterprises with average investment levels, the profits generated by each bank's borrowings will increase by 24%, which is 22% higher than that of the top 100 companies. In fact, no bank will let visible profits go unearned. Whether it is a large company or a small company, the key is that it is difficult for banks to determine which small companies are low-risk and high-yield.

Therefore, various state-owned commercial banks have established small and medium-sized enterprise credit departments to study loan issues for small and medium-sized enterprises. The central bank also issued a notice to expand the floating interest rates for small and medium-sized enterprises, allowing for different credit ratings. Each bank increases the legal loan interest rate by 10%-30%. In the "Guiding Opinions on Strengthening and Improving Financial Services for Small Businesses", it is emphasized that the financial service system for small businesses should be further strengthened and improved; the working methods of small business credit should be improved; the credit management system should be improved; and the development of technology-based small businesses should be actively supported. , promote the technological progress of small businesses; support re-employment and resettlement work; support small businesses to provide supporting services to large and medium-sized enterprises and participate in government procurement contract production; support the development of enterprises in commerce, foreign trade and emerging fields, and appropriately expand the scope of loans; support the establishment of Socialized intermediary service system for small businesses; pay close attention to loan investment and strengthen loan management; strengthen guidance and supervision for financial institutions to improve small business services.

Export Credit

Financing Guarantee

In fact, in order to solve the worries of financial institutions and reduce the risks of bank loans to small businesses, many places have Begin establishing a small business credit guarantee fund. Last year, the State Economic and Trade Commission issued the "Pilot Work Plan for the Construction of Credit Guarantee System for Small and Medium-sized Enterprises" to actively promote financial institutions to provide guarantees for the development of small and medium-sized enterprises. By the end of last year, 6 provincial-level re-guarantee agencies and more than 70 urban credit guarantee agencies had been established nationwide. These institutions provide government budget allocations, asset transfers and other methods to raise 4 billion yuan in funds to solve the problem of financing difficulties for small and medium-sized enterprises.

Shanghai’s approach is mainly to raise funds from the municipal, district and county finances, and at the same time absorb investment from enterprises and institutions, using a 1:5 amplification mechanism to form 3 billion to 4 billion credit guaranteed loans in the first year scale.

Yinchuan City in Ningxia has also established a guarantee fund specifically to provide RMB loans to small and medium-sized enterprises. The total scale of guaranteed funds is RMB 50 million, which will be raised in installments.

The scale of the first phase is 20 million yuan, including 6 million yuan from the municipal finance, 400,000 yuan each from the two counties and three district governments, and 2 million yuan from the autonomous region government. Land assets worth 10 million yuan will be allocated. At the same time, investment from private enterprises will be absorbed to strive for agreements. Bank funding. According to regulations, in principle, the amount of guarantee provided shall not exceed 50% of the total assets of the enterprise applying for loan guarantee, and the maximum shall not exceed 2 million yuan.

The Beijing Haidian District People's Government raised 30 million yuan and jointly established the "Small and Medium-sized Technology Enterprise Guarantee Risk Fund" with the Beijing Management Department of China Minsheng Bank. The guaranteed risk funds are supervised by the Haidian District People's Government. The Haidian District Government entrusts the Beijing Haidian District State-owned Assets Investment and Operation Company to be responsible for the contact, evaluation, contract signing and other specific work of the guarantee business.

With the direct participation of governments at all levels, the financing conflicts of small businesses will be alleviated. However, one issue that must be paid attention to is that if banks that specialize in finance cannot make decisions on the credit standing of small businesses, To make a correct assessment, we have to hesitate to move forward in terms of small business loans. So, how can the newly established guarantee fund with very obvious government actions make a correct assessment of the solvency of each small business that requires a bank loan?

In fact, the guarantee principles of guarantee funds are often guided by government industrial policies. A phenomenon that is likely to occur is that as long as the applied project complies with industrial policies, as long as the applicant has a network of personnel connections, regardless of the future Whether you are solvent or not, you can easily get a guarantee and get a bank loan.

The result of this is that there will be no bad debts on the bank side, but the money from the guarantee fund (mainly fiscal money) will be lost. This is no different from fiscal subsidies for bank bad debts. The only difference is that bad debts, which used to be in the hands of bank loan officers, are now in the hands of guarantor agencies.