There are 12 main ways to finance small and medium-sized enterprises:

One, comprehensive credit

that is, the bank of some good business conditions, credit and reliable enterprises, granting a certain amount of credit line within a certain period of time, the enterprise in the validity of the period with the scope of the line of credit can be used on a recurring basis. Comprehensive credit line by the enterprise one-time declaration of relevant materials, the bank one-time approval.

Enterprises can use the money in installments according to their own operating conditions and repay as they borrow, making it very convenient for enterprises to borrow money and saving financing costs at the same time. Banks use this way to provide loans, generally for business registration, annual inspection, management, reliable credit, with the bank has a longer-term relationship with the enterprise.

Two, credit guarantee loans

In the country's 31 provinces and municipalities, more than 100 cities have established small and medium-sized enterprise credit guarantee institutions. Most of these institutions implement the form of membership management, belonging to the public **** service, industry self-regulation, their own non-profit organizations. The source of the guarantee fund, generally by the local government financial allocations, members voluntarily paid membership funds,

Social fund-raising funds, commercial bank funds and other parts of the composition. When enterprises cannot provide guarantee measures acceptable to banks, such as mortgages, pledges or third-party credit guarantors, guarantee companies can, however, solve these difficulties.

Third, buyer loans

If the enterprise's products have reliable sales, but in the case of their own capital is insufficient, the financial management base is poor, the collateral that can be provided or to seek third-party guarantees is more difficult, the bank can be in accordance with the contract of sale, the buyer of its products to provide loan support.

The seller can collect a certain percentage of advance payment from the buyer to solve the financial difficulties in the production process. Or the buyer can issue a banker's acceptance draft, and the seller can hold the draft and discount it at the bank.

Four, off-site joint collaboration loans

Some small and medium-sized enterprises have a wide range of products, or for some large enterprises to provide supporting parts, or loose subsidiaries of the enterprise group. In the production of collaborative products in the process, the need to supplement the production of funds, you can seek a host bank to take the lead in the group company to provide unified loans,

Then by the group company to collaborate with the enterprise to provide the necessary funds, the local bank to cooperate with the contract supervision. Can also be led by the bank with a foreign collaborative enterprise account bank combination, split to provide loans.

Fifth, the project development loan

Some high-tech SMEs with significant value of scientific and technological achievements of the transformation project, the initial amount of capital investment is relatively large, the enterprise's own capital is difficult to bear, you can apply for a project development loan to the bank.

Commercial banks will give positive credit support to SMEs with mature technology and good market prospects for high-tech products or patented projects, as well as SMEs utilizing high-tech achievements for technological transformation, in order to promote enterprises to accelerate the speed of transformation of scientific and technological achievements.

VI. Loans for Exporting Foreign Exchange

For enterprises producing export products, banks can provide packaged loans based on export contracts, or credit visas provided by importers. For enterprises with cash accounts, foreign exchange collateralized loans can be provided.

For enterprises with foreign exchange income sources, they can obtain RMB loans on the basis of foreign exchange settlement certificates. For enterprises with favorable export prospects, they can also borrow a certain amount of technical transformation loans.

Seven, natural person guarantee loan

August 2002, the Industrial and Commercial Bank of China (ICBC) took the lead in launching the natural person guarantee loan business, in the future, the ICBC's domestic institutions, small and medium-sized enterprises for a period of less than three years for the credit business, can be provided by a natural person to provide property security and bear the responsibility for compensation.

The natural person's guarantee can be in the form of mortgage, pledge of rights or mortgage plus guarantee. Mortgage plus guarantee means that on the basis of the property mortgage, the mortgagee's joint and several liability guarantee is attached. If the borrower fails to repay all the loan principal and interest on time or other defaults occur, the bank will require the guarantor to fulfill the guarantee obligation.

Eight, personal entrusted loans

Chinese construction banks, Minsheng Bank, CITIC Industrial Bank and other commercial banks have launched a new variety of financing business - personal entrusted loans. That is, by the individual entrusted to provide funds, by commercial banks according to the principal to determine the object of the loan, purpose, amount, duration, interest rate, etc., on behalf of the issuance, supervision, use and assist in the recovery of a loan.

Nine, intangible assets secured loans

Based on the "Chinese People's **** and the State Guarantee Law" of the relevant provisions of the law can be transferred to the exclusive right to trademarks, patents, copyrights in the property rights and other intangible assets can be used as a loan pledge.

Ten, bill discount financing

Bill discount financing, refers to the bill holders will be transferred to the bank commercial paper, to obtain the funds after deducting the discount interest. In China, commercial paper mainly refers to banker's acceptances and commercial acceptances. One of the benefits of this type of financing is that banks do not lend according to the size of the enterprise's assets, but rather on the basis of market conditions (sales contracts).

Xi, financial leasing

Financial leasing in economically developed countries has become the second largest financing method of equipment investment after bank credit. Financial leasing is a set of credit, trade, leasing in one, the ownership of leased objects and the right to use the separation of new financing methods.

Equipment manufacturers can commission a financial leasing company to finance the purchase of a certain piece of equipment, and then deliver the equipment to the enterprise in the form of leasing. When the enterprise in the contract period to pay off the rent, and ultimately will have the ownership of the equipment.

Twelve, pawn financing

Pawn is in kind as collateral, in the form of transfer of ownership in kind to obtain a temporary loan of a financing method. Compared with the bank loan, pawn loan cost is high, the loan scale is small, but pawn also has the advantages of the bank loan can not be compared

Extended information

Small and medium-sized enterprise financing has always been a problem in China's economic development, through the analysis of its constraints, can be attributed to the external environment and small and medium-sized enterprises own factors, the analysis of constraints is the solution to the problem of the problem. The analysis of the constraints is the prerequisite way to solve the problem.

Environmental factors

1, governmental factors

China's social nature determines the degree of importance the government attaches to state-owned enterprises. For a long time, the state support policy has been practiced in favor of large enterprises, and not enough support for small and medium-sized enterprises, which is the historical reason for the difficulty of financing small and medium-sized enterprises.

Large enterprises can easily get funds in the capital market and money market, while the financing threshold for small and medium-sized enterprises has been raised accordingly, and small and medium-sized enterprises have to pay greater costs to obtain loans.

2, financial institutions

Banks and financial institutions operating mechanism constraints on SME financing. Under the impact of the financial crisis, governments have adopted the principle of prudence in order to effectively avoid the deeper harm caused by the financial crisis.

3. Credit guarantee system factors

The credit guarantee system for SMEs is still imperfect, and there are few organizations providing loan guarantees for SMEs, and the types and quantities of guarantee funds are far from being able to meet the demand. Private guarantee institutions are discriminated against by ownership, can only bear the risk of guaranteeing loans alone, and cannot form a ****-bearing mechanism with the collaborating banks.

4, direct financing factors

Enterprise direct exogenous financing is mainly through the issuance of shares of equity financing and the issuance of corporate bonds bond financing. In terms of equity financing, the threshold for listing is too high, making it impossible for most SMEs to solve the much-needed funds in this way.

5, the legal system factors

Small and medium-sized enterprise survival and development has been the lack of more effective legal protection, although the Company Law, the Partnership Law and a few other laws on small and medium-sized enterprises have a certain degree of norms, but the small and medium-sized enterprise loans, guarantees, listing, and other aspects of the financing of the protection is very little.

Small and medium-sized enterprises themselves

1, the quality of small and medium-sized enterprises is low, the credit situation is poor

Chinese small and medium-sized enterprises are generally not high quality, and a considerable portion of them are urban and rural enterprises, and the technological innovation of the enterprise is weak, lack of competitiveness, and the market risk is high, which makes the banks and other financial institutions dare not issue loans to them.

Small and medium-sized enterprises are mostly private enterprises or partnerships, with backward management, high business risks, poor credit concepts, unsound financial systems, and non-transparent information, which makes financial institutions unable to grasp the risk of lending to small and medium-sized enterprises, and increases the risk of lending.

2, the lack of collateral for small and medium-sized

No matter what the business requirements for loans or guarantees, there is a need for collateral to provide assurance. The only collateral SMEs have is their limited and low value of land, property and machinery and equipment, and their size also restricts the value of these collateral.

3, the lack of talent in small and medium-sized enterprises

Most of China's small and medium-sized enterprises are private enterprises, the quality of business leaders is not high, the lack of modern management concepts and leadership, and the development of the enterprise needs to be able to show a certain degree of foresight, advanced financing concepts for the enterprise to plan out a reasonable financing methods, to raise funds to meet the needs of the enterprise's development at a lower cost of financing. The company's development requires that managers show some foresight and have advanced financing concepts.

Baidu Encyclopedia - Financing Small and Medium Enterprises