Research On The Countermeasure Of Refinancing Financing Of Micro - Credit Companies

Micro-credit companies have mushroomed in china in recent years since itsinception,because they focus on satisfying financial needs of grassroots class.Therapid growth of Micro-credit companies effectively fills up the blank of the bankingsystem, and put significance on financing micro companies, establishing themulti-level credit market. However, during initial stage of the development ofMicro-credit companies, regulatory authorities aim to avoid the Micro-creditcompanies from absorbing deposits and pay attention to reducing risk of industry. Sothe regulatory authorities reduce the leverage standards and put restrictions onrefinancing channels. With the rapid development of Micro-credit companies, it isobvious that the bottleneck of refinance obstruct the progress of the wholeindustry. Compared with the strong market demand, the loan amounts are close to itsregistered capital in the opening,causing the situation of lacking of money.This notonly restricts the sustainable development of microfinance industry,but alsoinfluenced the solution of financing small and micro companies.This paper first describes the current policy of refinancing for Micro-creditcompanies, and then draw the conclusion that the current refinancing channels can notmeet the refinancing needs of Micro-credit companies. Second, this paper analyzesthe examples of the innovation of refinancing, including building new entity, issuingdebt and through internet.Subsequently, this paper summarizes the successfulexperience and risk in the case of refinancing channels innovation. On this basis, theauthor give the countermeasures to solve t the bottleneck of refinance.