Abstract: Since the reform and opening up, China's private enterprises have developed rapidly from scratch, from weak to strong. There are private enterprises in all walks of life in China, and the degree of economic development of private enterprises has therefore become an important reference index to measure the economic development of a region. After the global financial crisis in 2008, the development of private enterprises in China has encountered new obstacles and problems, and private enterprises are facing a more severe survival and development environment. It is believed that the most important problem faced by private enterprises after the financial crisis is financing. The financing situation of private enterprises in China is generally not optimistic, which makes private enterprises generally lack development funds and miss many market development opportunities. Financing has become a major bottleneck restricting the development of private enterprises.

Keywords:: private enterprise financing problems and countermeasures

Since the reform and opening up, China's private enterprises have achieved rapid development. Statistics show that in recent years, the contribution of private enterprise economy accounts for about one-third of China's total GDP, and even reaches three-quarters in some economically developed areas, such as Jiangsu and Zhejiang. It can be said that there are private enterprises in all walks of life in China, and the degree of economic development of private enterprises has therefore become an important reference index to measure the economic development of a region.

According to the data of the National Small and Medium Enterprises Department, in 2008, the tax paid by private enterprises accounted for nearly 60% of the total tax revenue in China. After the global financial crisis in 2008, the development of private enterprises in China has encountered new obstacles and problems, and private enterprises are facing a more severe survival and development environment.

The author believes that the most important problem faced by private enterprises after the financial crisis is financing. Compared with state-owned enterprises, especially large and medium-sized state-owned enterprises, it is more difficult for private enterprises to obtain the required funds directly from the capital market. The financing situation of private enterprises in China is generally not optimistic, which makes private enterprises generally lack development funds and miss many market development opportunities. Financing has become a major bottleneck restricting the development of private enterprises.

1 Definition of financing

What is financing and what is financing? People who don't understand finance really don't understand the meaning of financing. Financing and investment usually appear together. For enterprises, generally speaking, I lend money to enterprises, and enterprises return the money to me within the agreed time limit and pay certain interest or remuneration. Then my behavior is called investment, and the behavior of raising funds by enterprises is called financing.

Financing is the behavior and process of raising funds for enterprises. That is, starting from its own production and operation situation and capital utilization, according to the requirements of the company's future business development strategy, through scientific prediction and decision-making, it is an economic activity to raise funds needed for production and operation from investors and creditors of the company through certain channels. Generally speaking, enterprise financing has three purposes: want to expand, want to pay off debts, and have mixed motives.

At present, the main financing methods of enterprises in China are as follows:

The first is the IMF, which borrows money from fake stocks. As the name implies, the so-called fake stock secret loan means that investors invest in the project in the form of shares, but actually do not participate in project management and withdraw their shares from the project at a certain time.

The second financing method is bank acceptance bill. The investor will transfer a certain amount to the company account of the project party, and then immediately ask the bank to open a bank acceptance bill of 1 100 million yuan, and the investor will take the bank acceptance bill away. In fact, this kind of financing method can turn a hundred million into several times to use. One of the biggest drawbacks of acceptance is that according to national regulations, bank acceptance can only last for 12 months at most. At present, most places can only open for six months, that is, you have to renew it every six months or 1 year, and it will be very troublesome if it takes a long time.

The third financing method is direct deposit. This is the most difficult financing method, because direct deposit violates the relevant regulations of banks, and the relationship between enterprises and banks must be particularly good. The investor opens an account in the bank designated by the project party, deposits the specified amount into his own account, and then signs an agreement with the bank, promising that the money will not be misappropriated within the specified time, and the bank will give the project party a loan with the same amount or less according to this amount.

The fourth type is large pledged deposits. Pledged loan refers to the RMB loan that the borrower applies for a loan from the bank and is willing to apply for with the unexpired time deposit certificate, foreign currency deposit certificate or certificate-based national debt held by the bank as collateral.

The fifth financing method is bank letter of credit. The state has a policy that a bank letter of credit issued by a global commercial bank (such as Citigroup) that agrees to finance an enterprise is regarded as having the same amount of deposit in the enterprise account.

The sixth financing method is entrusted loan. The so-called entrusted loan means that the investor sets up a special fund account for the project party in the bank, then transfers the money into the special fund account and entrusts the bank to lend money to the project party. This is a relatively easy way of financing.

The seventh financing method is direct payment. Direct payment means direct investment. This project is very strict, and often requires the mortgage of fixed assets or bank guarantee, and the interest is relatively high, mostly short-term. Personal interest is the lowest 18, generally above 20.

The eighth financing method is hedge fund. At present, there is a kind of entrusted loan in the market that does not repay the principal and interest, and it is a typical hedge fund.

Although there are many financing methods at present, for private enterprises in China, only two or three can be used.

2 Private enterprises financing status and problems analysis

Financing difficulties have been puzzling small and medium-sized enterprises and the government for many years. "Looking for money" once became a nightmare for SMEs. Although there is some policy support, more and more enlightened policies are often seen by small and medium-sized enterprises like glass doors, but it is difficult to get in. Whether it is bank loans or venture capital, the eager eyes of small and medium-sized enterprises are gradually dim in infinite expectations.

2. 1 Financing Status of Private Enterprises in China

Private enterprises mainly have three financing methods: external liabilities (bank loans), issuance of corporate bonds or stocks, and internal accumulation of enterprises. Due to the influence of many factors such as government supervision policies and internal policies and regulations of enterprises, at present, the financing difficulties of private enterprises in China are mainly manifested in:

2. 1. 1 The legal status is unstable and the tax burden is too heavy, which reduces the level of self-internal accumulation.

Although the Constitution has been amended, it is proposed that the non-public economy is an important part of the socialist market economy, and private property rights are protected into the national protection system. However, in some parts of China, private enterprises are only protected by civil law. The inconsistency of law enforcement standards in different places leads to the confusion of private enterprises in China in the pursuit of legal protection.

At the same time, the tax burden of private enterprises is too heavy, which reduces the level of self-internal accumulation. Although due to the outbreak of the financial crisis, in order to support the development of private enterprises, the relevant state departments have lowered the corporate income tax rate of some high-tech private enterprises, according to the latest data in 2009, just take listed companies as an example: among all the listed companies in A-share 1700, 992 * * are state-owned enterprises, accounting for nearly 60%, and the average tax burden of these 992 state-owned enterprises is only1.

2. 1.2 The loans of commercial banks and Minsheng Bank to private enterprises are small in amount and short in term.

Private enterprises belong to non-state-owned enterprises, which are different from state-owned banks in ownership, resulting in a certain distance between banks and enterprises. Influenced by government intervention and traditional ideas, many banks pay insufficient attention to the loans of non-state-owned private enterprises and adopt discriminatory policies towards private enterprises, especially private enterprises. This concept is deeply rooted, which leads to the failure to implement and fully implement the international policy support for private enterprises.

The scale of economic loans for private enterprises is small, and the liquidity period is short (generally limited to less than one year), so the scale and duration of loans can not meet the needs of long-term capital turnover. As the first joint-stock commercial bank in China, Minsheng Bank mainly serves private enterprises, but the loan scale is too small, which leads to a serious shortage of credit funds for private enterprises.

2. 1.3 There are few guarantee companies and many funds, so it is difficult for private enterprises to obtain external guarantees and support.

Private enterprises in China mainly rely on indirect financing, which is mainly loans from financial institutions (banks), accounting for more than 70% of private enterprises' access to external funds. In addition to this financing method, some fund organizations and other financing companies are small in number and in the initial stage, which cannot form strong support and guarantee for private enterprises' financing. At present, there are more than 340,000 private individual enterprises in Shanghai, where China's economy is relatively developed. However, in recent years, venture capital companies, technology exchanges, China Insurance Shanghai Branch and various guarantee funds have provided financing services for more than 2,000 enterprises. Among them, the proportion of small enterprises is only 40%, and the loans obtained by small enterprises through guarantees only account for 3.2% of all loans. This shows that the state guarantee institutions have little guarantee for private enterprises.

2. 1.4 The road to listing and financing for private enterprises is still very difficult.

Because the local small and medium-sized banks in China have not been established for a long time and have a small scale, they have not formed a stable large customer base like big banks. Therefore, at present, private enterprises can only be listed and financed in the domestic main board market or overseas, but the main board market has strict conditions and hard requirements for small and medium-sized private enterprises. The overseas market is also extremely difficult, and the listing requirements are extremely strict. At the same time, due to some domestic related factors, it is impossible to successfully list in overseas markets, so it is impossible to raise funds through this channel. The Growth Enterprise Market (GEM), which meets the financing needs of SMEs, was established in June 2009. There is still a long way to go for countless small and medium-sized enterprises in China.