Research On SMES Intellectual Property Financing Through Guarantee

Since entering the new century, small and medium-sized enterprises of china (short forSMEs) have been widely developed in many industries and become an important force topromote the development of the industry. But the development of the small and medium-sizedenterprise remains plagued by financing for many reasons, such as small scale, shortoperation,little capital accumulation of their own and imperfect external financingenvironment. With the development of knowledge economy, intellectual property right as oneof the important intangible assets starts to get the attention from enterprises, especially fromSMEs which have played a decisive role. Compared with the patterns of traditionalfinancing, intellectual property secured financing has the features of small amount, low costand etc. So the development of intellectual property secured financing can help toease the plight of SMEs’ financing. However it is difficult to assess its value and control riskin the process of financing because of the characteristics of intellectual property. And at thesame time, China’s intellectual property secured financing is still in the pilot phase, the levelof market is relatively low and the construction of related legal system has not been perfect.To solve these problems, this paper starts from the existing obstacles of SMEs and thensummarizes the experience about solving these problems at home and abroad. Finally, therelevant advice is given in this paper.This paper is divided into the following parts.The introduction briefly introduces the purpose of research, the research status of SMEs’intellectual property secured financing both at home and abroad, and the innovation of thispaper.The first part is the overview of small and medium-sized enterprise intellectual propertysecured financing. This section is divided into two aspects. On one hand, it briefly introducesthe connotation of SMEs. On the other hand, it analyzes the necessity and feasibility ofintellectual property secured financing in detail.The second part introduces the status-quo of SMEs’ intellectual property securedfinancing both at home and abroad. This section is also divided into two aspects. Firstly, itanalyzes the successful mode of small and medium-sized enterprises of intellectual property secured financing in America and Japan. And secondly, it introduces a brief overview of themain domestic pilot city of intellectual property secured financing.The third part analyzes the difficult position of SMEs’ system in china. Based on theanalysis of the present condition of intellectual property secured financing of SMEs, fourquestions are put forward and given detailed analysis. There is the necessity of perfectingmortgage registration system, the unclear responsibility of government, the lack of rulesfor value evaluation and distemperedness of the mechanisms for risk management.The fourth part is to put forward some suggestions to perfect the intellectual propertysecured financing for SMEs in China. Followed by the third part above, this part is to putforward almost four suggestions for the successful operation of the intellectual propertysecured financing for SMEs in China, which is based on the success experience ofAmerica and Japan’s intellectual property secured financing for SMEs. First, the registrationsystem shall be improved and the registration shall be unified. Second, the responsibility ofgovernment shall be made clear and definite, and the operation of government shall bestandard. Third, rules for value evaluation shall be perfected. Forth, improve the riskprevention and control measures and pay more attention to the credit assessment of small andmedium-sized enterprise.