Research On Financing Patterns For Small& Micro-enterprises Under The Internet Finance

The small & micro-enterprises financing problem has bothered domestic macro-economic development for a long term. Our nation has paid abundant attention to this problem in recent years and positively guides from the aspect of policy. Small µ-enterprise is one of the main factors to improve domestic economy increase.Therefore, it means a lot to domestic economy development to solve the small µ-enterprises financing difficulty. Domestic scholars have researched the problem of small & micro-enterprises financing difficulty, the causes thereof mainly contain external causes and internal causes. In view of external causes, our nation lacks complete and perfect enterprise credit system, professional service system for small µ-enterprises, and the serious information asymmetry between the debtor and creditor result in the small & micro-enterprises financing failure. The relatively too high financing cost and the difficulty to control the credit risk of small & micro enterprises financing are also the reasons for its financing dilemma. In view of the internal causes, the small & micro-enterprises’ defects per se result in its financing difficulty. Thus, the priority of solving the small & micro enterprises financing difficulty is to solve the information asymmetry between the debtor and creditor and reduce the financing cost. The information asymmetry has always been the matter blocking small & micro enterprises obtain loan support, while the occurrence of internet finance brings new hope to the small & micro enterprises. Internet finance not only lowers the financing criterion but also increases the financing channels for the small & micro enterprises. Most importantly, the problem of information asymmetry is effectively relieved.This paper is to research the financing patterns for small & micro enterprises under internet finance. Firstly, the current financing situation of small µ-enterprises is introduced, and the reasons for the financing difficulty are analyzed. Based on the discussion of internet finance terms definition, characters and advantages thereof, the internet finance development and the financing modes under internet finance are introduced, mainly including electronic business platform micro loans, P2 P lending model, crowdfunding model. The advantages of internet finance in small & micro enterprises financing and the possible potential risks are specificallyrecited, and the internet finance is analyzed in contrast to traditional commercial banks crediting. This paper tries to systematically research the financing patterns for small µ enterprises under internet finance and positively explore how to solve small µ enterprises financing problems using internet finance. In chapter five, the countermeasures and suggestions are proposed in regard of the possible potential risks of small & micro enterprises financing under internet finance and provide theoretical reference for solving small & micro enterprises financing difficulty.This paper aims to find suitable financing patterns for small & micro enterprises by comparing internet finance and traditional commercial banks financing, and provide coutntermeasures in respect of financing environment, risk supervision, strengthening cooperation and small & micro enterprises self-construction etc., so as to help solve the financing problem of mall & micro enterprises and facilitate mall & micro enterprises develop.