The Management Study On Financing Cost Of Small And Middle Size Foreign Trade Enterprise

With the domestic open to overseas, the innovation of socialistic market economic system and the entrance to WTO, the Chinese small and middle size enterprise have been the important and active components of civil economics, they are the crucial support of economic development and social stabilization. And contribution to the economic development and people's life by active market competition, promote efficiency and creation employment. According as the promise of China entrance to the WTO, the interim of business domain have been finished before Dec 11^th, 2004. The foreign trade entrances have abolished the limitation on zone; stock and amount which mean the protective door to domestic enterprise. That mean the drastic competition need to be faced for inland small and middle size commercial enterprises. However, the inland enterprises possess the common question of small size, higher debt and lower profits. Recently years, the expansion of small and middle size enterprise have been restricted by the absence of financing channel and high financing cost. On the contrary, foreign merchant own the advantage of capital and easy to obtain the fund from different channels. So, the urgent affairs of small and middle enterprises would be expand financing channel, innovation model, optimization configuration and reduction costs.There are many articles concerning the research of small and middle foreign enterprise and foreign enterprise financing cost, but few papers combine the two facets together, most of them study the questions from the single point of view. The research scope of the paper limited in nonproductive commercial enterprises, relative to the productive firms, the nonproductive enterprise would face more complex situation when China enter into WTO, especially, financing channel, cost, risks and framework etc. So the paper focuses on those representative issues, that will narrow the research extension and make the paper have intense pertinence. The paper analyzes and digs the deeper reasons of small and middle size enterprises financing situation, analyzes the affairs that how the financing channel and capital need would affect the costs. The article also point out the confirmation of financing cost and forecast on fund demand. Base on the characteristic of management capital in small and middle size enterprises, the paper advance the avoid ways on financing cost, management, risks from inner and outer aspects. The article put forwards the following ways for fast achieve the development aim by utilizing own management style, exploiting overseas commercial financing channel and breaching the corner of the lack of funds.