Credit Risk Assessment And Management On China SME In Finance Lease Project

SMEs have become an import driver in motivating economic growth, attractingemployment, and promoting innovation since reform30years in economicdevelopment in China. They also play an important role in industrial restructuring andsocial stability. However, the financing problem has been the bottleneck restricting thedevelopment of SMEs in China.Finance lease, because of the features of both “financing” and “financing properties”,is the emergence of innovative financial instruments in developed countries andcurrently has become a solution to the financing difficulties of SMEs in China.The article, based on the credit risk characteristics and influencing factors of SMEs’finance lease, is designed to provide an assessment method not only by analyzingexisting evaluation factors and method of leasing companies, but also by using aneffective assessment model.In the paper, firstly, I defined the concept of SMEs, finance lease, credit risk, etc. andanalyze the causes of the financing difficulties of SMEs in China. Then it leads to thesources, causes and the measure of credit risk for SME’s finance lease. By doing someinspections and case studies, I draw some useful conclusions on credit risk assessmentmodel. Finally, I want to put forward some comments and suggestions to solve theproblems of finance lease of SMEs in China.