Financing Methods Choice And Application Analysis On Science-technology SMEs

China has been trying to reach steady and rapid development of economicenvironment. Under the background of the current economic downward pressureincreasing and gradually lost of labor advantage, the original high pollution,high-energy consumption, and extensive economic growth mode is no longer able tomeet the current development of our country’s economy and society. Our country’seconomy desperately needs to seek a new growth point. In this situation, due tohigh-tech enterprises have advantages of low power consumption, high value-added,sustainable development and other superiorities, they gradually developed into a vitalforce in the Chinese economy, especially the vanguard of SMEs. Small andMedium-sized Technological Enterprises (SMEs) are the main force of this industry.Financing is the biggest problem for high-tech SMEs at the early stages of theirdevelopment. The small amount of capital and limited financing channels are theprimary issues of high-tech SMEs developing processes. The "high-tech enterprise"and " SMEs" are the dual attributes of high-tech SMEs. The development of scienceand technology enterprises require a large amount of capital investment to achieve theconversion of science and technology, but the shortage of SME funding problem stillcannot be solved. Also, bank credit institution, firm size and other factors influencethe development of science and technology enterprises. Lacking of funds lead theSME to a difficult position. The financing problems of SMEs need to be solvedurgently. While facing with variety of financing methods on the market, how tochoose reasonable financing methods is a serious problem. If the enterprise chooses aproper financing method, such as raising enough capital and lower financing cost, thefinancing problem will be properly solved and this financing method will play acatalytic role to the healthy development of the enterprise. Conversely, if choosing awrong financing method, it will make the enterprise financing costs rise and cutprofits, at the same time increase enterprise financial risk.This paper using integrate theory with practice method to analyze the currentsituation of developing high-tech SMEs. Try to fully understand the defects andreasons of SMEs. Learning from the modern enterprise philosophy and the theories ofenterprise financial management. Based on the present capital market situation ofChina, focus on several corporate financing methods to compare and analyze, finally combined with enterprises’ cases, by using application of actual cases to analyze thechoice of financing methods for small and medium-sized technology enterprise’sstandard. The ultimate goal is to crack the financing problems of SMEs and break thedevelopment bottleneck, and then boost the sustainable development of high-techenterprise and China ’s economy.