Solution To The Problem Of Small Micro-enterprise’s Difficulty In Getting Loans

Small micro-enterprise is an important part of our market economy, small micro-enterprise contributes to our national economy by about60%-80%of the profit and income and create nearly one third of total employment chances. It has an important position in national economic development but has been always faced with the problem of getting loans. The problem of lacking loans is an important factor which has constrained the development and scaling up of small micro-enterprise. To solve this difficult problem has very realistic significance for our country. Through providing financial support to small micro-enterprise, our society can achieve the goal of increasing the income of citizens and farmers, bringing prosperity to financial market, increasing the income of financial institutions, giving impetus to the development of local economy and meet people’s diversified demands, reducing the pressure on urban employment, getting the financial market in order, promoting social stability and harmonious development, promoting the construction of social credit system and improving the level of social credit. Therefore, study and solve this problem has an positive effect on enriching rich financial theory in our country, increasing financial practice, developing the financial market, bringing prosperity to national economy.The problem lies in the difficulty of getting loans and post-loan management. The difficulty of getting loans is mainly due to the information asymmetry problem caused by the banks’unwilling to lend. High post-loan management cost is also the key reason for this problem.A lot of small micro-enterprises have failed to pay off the debts due to the lack of reasonable planning and blind borrowing of funds which has leaded to their losing chances of investing in good projects or poor management. For post-loan risk control, banks need to spend money on the maintenance post-loan management, improve the banks’borrowing costs. For post-loan risk control, banks need to spend money on the maintenance post-loan management which improves banks’costs. At present, although China’s support for small micro-enterprise has gradually increased, there are still many problems existing. The money demand of small micro enterprises is large. The traditional small loan companies are unable to meet the demand, and because of cost constraints, small loan companies are unable to train and introduce specialized personnel to manage small loans business and control the loan risk which will bring great risks to the market.Solution to small micro loan problem is mainly to solve the problems of high cost and risk control. Commercial banks have advantages on these two aspects. Among these, the key is to solve the problem brought by information asymmetry between commercial Banks and customers. The core lies in the transformation concept commercial banks’concept, roles, positioning and marketing methods. Before providing loans, banks need to do survey and screening and explore ways to reduce the survey cost. After giving out loans, they need to do regular verification and supervision to control the risk. At the same time, banks should change the traditional marketing methods. They can use the network and media to promote their products and make sure their customers can get access to the loan products and believe in them. In detail, banks can achieve the objectives of risk control and cost reducing on before-loan preparation, performance appraisal, and post-loan management.