Research On Financing Mode Of Small And Medium - Sized Enterprises In Internet Financial

With the rapid development of China’s socialistic market economy,SME are playing an increasingly important role in driving economic growth,promoting employment rate and so on.However,the difficulty for SME to finance has not been resolved,and has become an significant obstacle to the long-term development of Chinese SME.Internet banking,however,happens to provide a new path of financing with a variety of models available for SME to try.In traditional financing models,SME always face challenges such as high cost, lack of collateral, information asymmetry problem,which would be resolved by Internet financing modes. The essay first analyzes the characteristics of different financing modes of SME.Then based on features of internet finance,the essay analyzes the advantages and of financial feasibility for the Internet banking to be applied in solving SME financing problem and promoting their development status.In the meantime,it analyzes difficulties for SME to apply Internet financing modes and explain possible reasons.Finally,in order to make internet banking better applied in the future,the essay comes up with some feasible policy recommendations.