The Tightness Of Bank-Enterprise Relationship And The County Smes’ Credit Availability

Small and medium-sized enterprises (SMEs) are an important support of our national economy, but the problem of financing for SMEs has always existed, and to some extent, hinders the development of SMEs. In recent years, expanding financing channels, perfecting the guarantee mechanism, regulating the operation of enterprises, and supporting policy have become the main measures to solve the financing difficulties of SMEs, but the current level of China’s economy, the degree of development of capital markets and SMEs’ own characteristics determine that the bank lending is still an important way in the SME financing, and the bank-enterprise relationship has a profound impact on full play of banks in solving the SMEs’ financing difficulties.Firstly, according to the Credit Facility Theory and the Bank-Enterprise Relationship Theory, we select266SMEs in Jiangsu Province as research objects,99SMEs in Suzhou as the representatives of Southern Jiangsu,92SMEs in Nantong as the representatives of Middle Jiangsu,75SMEs in Xuzhou as the representatives of Northern Jiangsu. The study mainly includes basic information, the evaluation of corporate financing as well as corporate bank loans, the paper makes a descriptive analysis of the sample situation.Secondly, after elaborating the situation of SMEs, this paper uses Probit empirical model to analyze the effect of bank-enterprise relationship to the county SMEs’ credit availability. The empirical results show that the length of contact time between banks and enterprises has positive effects on SMEs’ credit facility. The closer the relationship between banks and enterprises, the greater the likelihood of enterprises to obtain bank loans. In enterprise factors, corporate profitability and the number of practical years of business owners have positive effects on SMEs’ credit facility. Finally, draw the conclusions and put forward some recommendations from bank and enterprise perspective to promote SME financing and to improve the rapid development of SMEs.