The Research Of Operation Mechanism For Small And Medium Enterprises’ Financing Based On Joint Guarantee And Internet

As we all known, the financing of SME faces hardship and difficulties. In2011, many SME in some areas of Yangtze River delta encountered the trendof closing down. What is more, lots of owners of SME had to escape foravoiding the hard liabilities. As the main force of the development ofeconomy and society, SME are playing important roles in our marketization,industrialization and urbanization. So, Developing the Financing mode forSME is necessary and urgent.This paper comprehensively makes use of some research methods, suchas literature research, normative analysis and Positive Analysis, case study,and discusses some theories deeply, such as Financing Theory, The reasonscaused the Financial Difficulties, Financing and Guarantee Theory, jointguarantee and financing. After analysis the current situation of financing ofSME, this paper develops the design thought of financing mode based oninternet and joint guarantee for SME and states the operation process andmechanism for this kind of financing mode. Besides, this paper tested andverified the effectiveness and practical applicability by taking the jointguarantee financing mode developed by Alibaba and SMEs from Zhejiangprovince for example. The main conclusion is as below.First, the financing mode based on internet and joint guarantee integratesthe information platform and financing guarantee system so as to realize theinformation equity between bank and SME and decrease banks’ risk andlending expense. Second, this new mode involves the establishment offinancing team, designing the information platform, the support of financialpolicies and development of credit system. Third, the operation process of thismode includes searching the partners, applying for loans, check the applicants,release the loans, sharing the information between SMEs, taking back lendingand so on. Forth, the operation mechanism is combined by the mechanism of information symmetry, the mechanism of credit, the mechanism of controllingrisks, the mechanism of cutting the cost, the mechanism of social supervisionand punishment.