Shenzhen Hongfei Micro-credit Company Business Model Research

The petty loan company is the emergence of financial innovation andcontinuous development of the results. The petty loan company is a naturalperson, the legal person enterprise and other social organizations to set upinvestment, does not absorb public deposits, small business loan business of thelimited liability company or a joint stock limited company. Small loan companyadhere to the " small, scattered" principle, encourage low-income populationsand medium and small businesses to provide credit services. Small loan relatedloan amount of small, formalities is convenient, practical, since the pilot since,has penetrated into all aspects of economic life in china. In this paper, in theeconomically developed Shenzhen area of a small loan company as the researchfoundation, analysis of the economic developed areas the small loan company’soperating status and operating characteristics. Through its credit businessmanagement analysis, explore the petty loan company product development andrisk control theory and methods, construction of our country economy developedarea small loan company a good business model. Hope Chinese microfinancebusiness enterprise to obtain good economic benefits on the basis of, let moretraditional financial service system out of poverty, low income people in the lifeand work has more access to funding opportunities, promote inclusive financialsystem construction, harmonious well-off society to make contribution.City Commercial Company microfinance clients face, with loans, loanamount, loan request number quickly, repayment ability big variables, creditfuzzy and cannot provide effective guarantee, but they are often able toperiodically with a cash flow and other distinctive features, the petty loancompany is often used in small, scattered, staging payment risk dispersionmethod according to hedge risks, risk compensation theory by using the higher charge method for part of the risk compensation, finally use the risk controltheory, taking a close tracking, rapid response and other risk management toolsfor risk control. But because industry grows time shorter, a lot of companieseager to do business, in the management of the business or there is not a smallproblem. In this paper a small loan company in Shenzhen as an example,strengthening the market on the basis of the analysis, through the design ofproducts suitable for the market demand and make credit policy in the respectsuch as the source to control risk, then in the business development processgradually applied risk dispersion, risk hedging, risk compensation and other riskcontrol means to strengthen the risk management, especially throughstandardized operation and strengthen personnel training to avoid risks, improvecorporate risk management mechanism. According to practical experience,established a relatively perfect business model, presented in the Microfinance inpractical work are easy to be neglected but very important about credit policy andoperational procedures for compliance inspection wind control concept. In theconstruction of small loan business of good business model, finally proposesseveral logical facilitates the development of microfinance policyrecommendations for other city, small business loans to provide the experiencethat can draw lessons from.