Research SME Credit Rating Index System

SMEs (the small and medium enterprises) have accounted for99%of the total number of enterprises in our country. And, they are playing a more and more significant role in our social and economic life. However, in the process of seeking their own development, SME facesa lot of difficulties for many reasons, such as financial crisis,credit guarantypoverty, etc. In fact, SMEs usually rely on bank to solve theirfinancial problem, but whether they can get the money mainly depends on their credit rating. However, the current credit rating system which is based on large corporate is not suitable for SME’s. So, we need to develop a new system that is belonging to SMEs.By reading a lot ofrelevant literature and studyinginto many researches, the paper is trying to build an applicativeand targeted credit rating system by the method of quantitative analysis and qualitative analysis. First of all, the paper gives us a detailed analysis on the resent researches, some concepts related to corporate credit rating, and talks something about the importance of creating such a new system. Then, the paper points out the problems exist in the current rating system, which paves the way for what we will talk about next. Down again, the paper leads us to the core part of itself, which is about how to construct the applicable credit rating index system for SMEs. In this part, what is discussed includes three aspects. The first aspect is to screen credit rating index by using factor analysis method; the second is to determine the weight of each index by AHP; the third one is to build the scoring model. At last, the paper chooses a SME as case to test the model just built, and the test result shows us that the model is available and helpful. By now, it comes to the end of the paper. In this part, the paper gives us some useful suggestions for the construction and development of the SME’s credit rating system.