Financing Of Smes

Medium and Small scale enterprise (MSSE) has been playing a very vital role in making job, turning market brisk, increasing income, social stability and forming a proper national economic structure. It comes form statistics that there are over 10 million MSSE in the present in our nation, which occupy 99 percent in the all registered companies, take 60 percent industrial output, seize 40 percent tax, capture 60 percent export, and provide 75 percent job in city employment in our country. Overthrough, the MSSE faces lots of difficulties and problems yet. Comparing with those large scale corporates, MSSE has met more obstacles in obtaining capital, technology, intelligence and information, it stays in weak position in marketing. Financing corner becomes the bottleneck of MSSE development. So it's very important and significant to study the MSSE financing.The used studies in MSSE financing always focus on trust guarantee system, medium and small financial organization, venture capital and building the second security market. But financial lease, as a very proper way of financing, has been ignoring for a long time. As for a new financial method of financing and material, financial lease becomes the links of finance, trade and industrial output. Comparing with banking loan and other traditional financing ways, financial lease has peculiar advantages in supporting MSSE. I think financial lease is virtually a new way in MSSE's long-term financing.This thesis consists of three chapters. In chapter one, starting from the analysis of capital demand of MSSE, I present the formation and character of MSSE, and give a brief introduction of financing process and theory of financing gap of MSSE. In chapter two, the financing actualities of china's MSSE are the focus of study. Through analyzing the financing structure of MSSE, I put forward the financing gap which China's MSSE is facing, and I make a further discussion on the reasons of financing corner of it in addition to that. In chapter three, according to the financing actualities of china's MSSE, I suggest that financial lease should be the way to solve the problem of capital demand of it, which is the hard core of this thesis. Furthermore, I analyze the advantages brought by the support of financial lease in detail, and based on the problems of the operations of financial lease in China and the experiences of international financial lease I present my suggestion on how to make use of financial lease to support the development of MSSE.