Analysis On The Influenciing Factors Of Small And Micro Businesses Financing From P2P Lending Platform

The lack of financial aid of small and micro businesses has always been an international problem.Banks,small loan companies,and other kinds of Chinese financial institutions have done a lot of efforts in order to alleviate the financing difficulties of small and micro businesses,however,met with little success.At the same time,internet finance industry develops rapidly,among them,the kind of P2P online lending gradually integrates into our daily lives.Thanks to the right place and time,P2P online lending has received extensive attention from theoretical and academic circles.This paper will study the influencing factors of small and micro businesses financing from P2P lending platform from the perspective of the investors.It has certain theoretical and practical significance to search the specific methods and paths for alleviating the"financing difficulties of small and micro businesses".Scholars that from all over the world have done a lot of researches on both the small and micro businesses financing and P2P lending.They found that information asymmetry weakened small and micro businesses financing.And also,lack of collateral made it difficult for the small and micro businesses to get financial aid from traditional financial institutions.After the emergence of internet finance industry,the P2P online lending comes into being,the kind of credit loan which needs no collateral becomes more and more popular among small and micro businesses,this kind of loan has not only offer great convenience to small and micro businesses,but also promote the development of small and micro businesses financing.In this paper,we first analyze the theoretical mechanisms which prove that P2P lending can ease the financial problem of small and micro businesses.And then we try to study the theoretical availability of getting decision making credit loan and relationship credit loan.After that,the paper confirms P2P online lending can alleviate the "financing difficulties of small and micro businesses "through the expected default rate model.The P2P lending platform will disclose all the information about the loan,also some credit information,asset information,basic information of small and micro businesses borrowers at the time small and micro businesses issue their loans.All the information showing on the P2P lending platform is reference for investors to judge the default risk of small and micro businesses,which will directly affect investors'expectations of default rate of small and micro businesses financing from P2P platform.And the investors' expectations of default rate will directly affect the investment decisions of P2P online investors.This paper has made an empirical study with the transaction data,downloaded from Renrendai,to study the influential factors of small and micro businesses financing from P2P platform.Finally,we found that the larger of the loan amount,the higher of the expectation default rate of investors,which made the amount of successful financing per second less,and more investors will be needed to participate in order to cover the loan.In the contrary,if the loan amount is smaller,the expectation default rate of investors will be much lower,and the amount of successful financing per second of small and micro businesses will be more,it will need less investors to participate to cover the loan.The credit information,asset information and basic information provided by small and micro businesses borrower reveals the default risk of small and micro businesses,which will surely affect the investors' judgment,and then affect the investors,expectation default rate of small and micro businesses,which will meet different amount of successful financing per second.If the small and micro businesses have higher credit audit level,the number of successful loan is larger,in other words,the small and micro businesses have better credit,the default risk will be lower,and the expectation default rate of investors will be lower,it will need less investors to participate to cover the loan.Based on this paper,it needs efforts both from the P2P lending platform and the small and micro businesses to alleviate the difficulty of the small and micro businesses financing.As for the P2P lending platform,they should aware and strengthen the rational guiding significance of the information to the investors,also they should better optimize the setting mode of different kinds of information.And they should also improve the disclosure rules of credit information and establish a more effective credit rating system;as for the small and micro businesses,they should intensify their credit,increase their credit information and asset information,and reduce the default risk.At the same time,the small and micro businesses should try to accumulate good credit records during their daily business,develop their own operating characteristics,improve products' added value.