Research On The Application Of P2P Lending In Financing Small And Micro Enterprises

P2P lending as a financial innovation is the integration of private finance and theInternet.Since2007introduced to domestic, with the the development of mobilepayment, credit rationing and financial exclusion, its own advantages, environmentand other factors, P2P lending market has developed rapidly. Its development modelalso innovated, including a simple intermediary type, complex type of intermediaryand non-profit charity type. Now, within the entire P2P lending market, the numbersof platforms are increasing, the scale of the market is expanded rapidly, participatesand business models in the market are diversifying, but the risks and problems areaccumulating.In the P2P lending market, nearly70percent share is small and micro enterprisesloans. In reality, the characteristics of the P2P lending and the characteristics offinancing small and micro enterprises in the same, small and micro enterprises in therealm of financing difficulties, which are driven small and micro enterprises to realizethe P2P network loan financing.In theory, firstly P2P lending provides intermediary services for both lender andborrower, played a role in the allocation of resources. Secondly, despite asymmetricinformation, but as long as the small and micro enterprises expected rate of returnexceeds the cost of the lender, the transaction costs and compensation for the information asymmetric risk, they can achieve P2P lending transactions, and the lowerthe degree of information asymmetry, the greater the likelihood. Finally social capitalgenerate "soft information" generally reflect the financial condition of the borrowerand the degree of integrity, and rely on personal credit mechanism and reputationmechanisms of social capital,through incentives for borrowers behavior, disciplineand punishment, the P2P lending play a role in mitigation of asymmetric information.Through the research on PPDAI data, obtained the factors influence the likelihood ofpeople to lend. Borrow credit score, the number of successful history of the borrowerare positively related to the willingness of the lender to lend funds.The number offailed bids of the borrower, the lend term and the rate of the loan are negative relatedto the willingness of the lender to lend funds.Lending score and the amount of theloan has a weak influence on the willingness of the lender to lend funds.To play an active role in the P2P lending financing small and micro enterprises,combining risks in the P2P lending market and research results, the correspondingoffer some policy recommendations. Firstly, the government should clear the nature ofP2P lending platform and determine the regulatory body.at the same time set up therelevant laws and regulations. Improve the regulatory system; strengthen theconstruction of individual and small micro-enterprise credit system. Secondly, the P2Plending platform should strengthen the construction of the platform itself, andestablish a risk reserve. Finally, individuals, small and micro enterprises shouldimprove the credit worthiness of meaning, focus on the accumulation andmaintenance of social capital in the P2P lending platform.