Sme Bank Financing Way

With the China's open and reform, the hi-tech small-medium enterprises (HI-TECH SMEs) have developed quickly over the past several decades. The HI-TECH SMEs are increasingly important to the development of economy, for both China and other countries. More and more people pay attention to the development of the HI-TECH SMEs. At the same time, the financial problem became the "bottle-neck", blocking their expanding fleetly. Many economists have researched the problem and provided many solutions and reasonable suggestion. However the effect of the way to resolve the financial problem was not appropriate and apparent.The author indicates the characteristics of banking of HI-TECH SMEs. The lack of warranty and limitation of banking in China is the main reason of difficulty of financing. Many commercial banks have made effort to design new banking commodities for SMEs, but the financial condition has hardly changed. The thesis analyzes much practical experience of HI-TECH SMEs financial methods of other countries and areas. Specially, the financial model of Silicon Valley Bank, as a good example, stimulates innovation for financial method of Chinese SMEs. The thesis creates the new way of HI-TECH SMEs financing, which is to make venture capital (VC) as the complement of SMEs banking.VC not only provides the enough capital, but also affords the consulting services to the venture-backed companies. VC assists the HI-TECH SMEs to grow quickly and promotes the national economy. Based on the former theories, the article focuses on the structure of capital and suggests the combination of commercial bank and VC. Furthermore, the combination of equity financing and debt financing is the innovation of the paper. The suggestion in the article is practical and suitable to the temporary principal of the SMEs financial market and great significant to development of HI-TECH SMEs. The economic theory and lawful research for the SMEs financing need be researched further and perfected.