Relational Loans And Small-medium Sized Firm's Financing

Financing problems facing China's small and medium-sized enterprises (SMEs) involve large funding requirements gap, restrictions on bank loans, high interest rates, short duration and so on, while China's commercial banks have a high surplus, bank credit further goes to large enterprises. Its size and the extended SMEs characteristics of the message result bank-enterprise information asymmetry, leading banks and other credit institutions grudging lending to SMEs. Relational loan as a financing technique, has rich theoretical and practical application in the United States, Germany, Japan and some other countries, and offers a new perspective to solve the difficulties in SMEs financing. Relational loan has its inherent advantages to ease the information asymmetry between banks and enterprises.Chapter 1 comes up with relational loans to study how to effectively mitigate the SMEs financing bottleneck problem to guarantee faster and healthier development of SMEs, and to continue to make greater contributions to China's economic development.In chapter 2, we sort out studies from domestic and abroad to get a good understanding of them from the perspective of the definition of relational loan ,its role of alleviating the problem of financing SMEs, the relation between it and the growth of small and medium enterprises stage, ways to apply it, which On the one hand reflects the theoretical and practical significance of this paper ,on the other hand provides experiences for our country.In chapter 3, repeated Game Model, incomplete Contract Theory and the asset side economic theory are used to analyze and explain the inner reason why relational loan may ease the financing problem of SMEs, and offer a deep-seated theoretical support for China to establish the relationship-oriented SMEs loan system .In chapter 4, By comparing the relation-loan system in the United States, Germany, Japan and other developed countries, we conclude that the model from US is a factual marketing one and is more in line with China's market-oriented reform, more suitable for the financing needs of small and medium-sized enterprises in China. However, because the degree of marketization in China and the United States differs, therefore, the establishment and implementation of relationship-based lending system in China should not copy the US model directly and should be integrated with the reality of China's economic development.In chapter 5,Based on China's economic realities, we analyze favorable and unfavorable factors for the development of relation loans, of which order pattern of China's traditional society provides a good social background; SME clusters formed by the social-capital loans for the development of relations provide a good economic environment; non-formal financial development provides a good systematic background; However, the quality of their own financial problems and the extent of financial inhibition is not conducive to effective relational loans.In chapter 6, we draw the conclusion that China should take advantage of relational loans to solve the financing problems of SMEs. The establishment of SME credit system should call for the efforts from non-relational (SMEs), banks, and government. SMEs should enhance their own quality practice, the banks should vigorously implement operational innovation and client manager system .The government should establish a system to provide loans for SMEs, which includes supporting small and medium-sized financial institutions, to continue to push forward the reform of interest rates, construct multi-layer capital market system, strengthen the construction of credit system and standardize the development of the non-formal financial system..