| Related data indicates that middle and small-sized enterprises (SMEs) account for the majority shares among the overall enterprises amounts in China. The rapid development and orderly progress of SMEs have played an important role in promoting the stable and rapid development of China’s social economy. However, financing difficulties have grown into a significant problem impeding SMEs’sustainable development. Influenced by the overall slowdown economic, the average asset-liability ratio for China’s SMEs is relatively high in recent years. There is a serious phenomenon for enterprises by operating on borrowing. And loans borrowed by many enterprises are normally featuring in short on-loan terms and high interest rate, so enterprises are facing high fund collecting and liquidity pressures. Under this circumstance, to release the SMEs from financing difficulties by applying insurance mechanism has become an effective channel for exploration. At present, Modes for reducing SMEs’financing costs by utilizing credit and bonds insurance from the insurance company and synthesizing them with bank loans have risen. There are also insurance mechanism that can be applied to prevent possible credit risks caused by banks’credit and loan businesses. These modes mainly include cooperation between credit insurance divisions of PICC, PINAN Insurance and Sunshine Insurance, Insurance companies as well as the local governments. Under the background of the State Council issuing "Opinions on accelerating the development of modern insurance services"’in 2014, namely "National ten opinions"called by the insurance industry, Sunshine Chongqing Financing Credit Insurance Company was established at the start of 2016. It is the first credit insurance company in China professionalizing in providing credit insurance. This essay starts from explaining corporate financing theories and professionalization of the financial institutions. Through case analysis and empirical performance assessment on professional insurance companies, it compares and analyzes existing credit insurance modes and government support modes. Synthesizing the company’s equity structure, company governance situation, as well as its business plan and development plan from preparation to establishment, this essay then researches and discusses the significance and prospect of credit insurance in promoting SMEs financing after the company established. In the end, it introduces conclusions related to the insurance rates guaranteeing and then further gives development views and suggestions. |
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