Research On The Loan Credit Guarantee Insurance In Small And Medium-Sized Enterprises’ Financingof Our Country

Under the guidance of national policy and in the fierce market competition, our country’s small and medium-sized enterprises have undergone the process of from weak to strong, from the beginning to further development since the reform and opening up policy. Small and medium-sized enterprises have become an important part in the national economy, and played a curtail role in achieving economic increase, provoking scientific and technological innovation, optimizing economic structure, and solving the problem of employment. But the development of small and medium-sized enterprises is blocked by the inefficiency of financial support, the cost pressure, the lack of a good prospect and the investment barriers. Among these problems, the financing difficulties have become the bottleneck for small and medium-sized enterprises’ development. However, the capital market and bond market in the present financial system of our country are still unable to meet the financing needs of small and medium-sized enterprises. As the number of small and medium-sized enterprises keeps increasing, to solve their financing difficulties has become a main task of the government.Some countries abroad have adopted various policies and measures to solve the problem of small and medium-sized enterprises’s financing difficulty, including the United States, Japan, Korea, etc. Through the establishment of the laws relative to the credit guarantee system and setting up relatively complete credit guarantee system these courtiers have helped to solvesmall and medium-sized enterprises’ financing problem. Analyzing these international experiences can inspire us in how to develop our country’s credit guarantee insurance service. Credit insurance doesn’t have a long history in our country, whereas it has been developed more maturely in many foreign countries. Domestically, it has finished the preliminary development and now has entered the phase of rapid development, keeping pace with the rapid development of our country’s economy and increasing demand of small and medium-sized enterprises’ financing. There are many channels available for small and medium-sized enterprises’ financing, which generally falls into two different groups:interior financing and exterior financing. The bank loan still remains one of the main methods for small and medium-sized enterprises to get financial support. But small and medium-sized enterprisesare often short of abundant capital and are easily influenced by the market. What’s more, their enterprise management is usually weak, so their credit rank is usually low in the bank system. Credit guaranteeinsurance, acting like a bridge, can link together the small and medium-sized enterprises and Banks, and sharebanks’s risks for offering small enterprises loans. The insurance company usually has to assume the credit risk, market risk, policy risk, legal risk, etc., but the main risk is the credit risk. Through sharing small companys’prepayment risk, credit guaranteeinsurance can not only accelerate the development of small and meddle-sized companies, but can also boostbanks’ income, thus realizing a win-win situation. From a larger level, considering the key role that small and medium-sized enterprises play in our economic life, solving the problem of financing difficulties of small and medium-sized enterprises via credit guarantee insurance has certain social significance.In constructing the credit guarantee system of small and medium-sized enterprisesof our country, we can refer to the rich experience of other courtiers, especially their established law system and their multi-level credit guarantee system. At the same time, government’s support is indispensably for the credit guarantee insurance system’s development. Loan credit guarantee insurance’s development needs a favorable financial environment, good credit order and an established credit system, which is inseparable from the joint efforts of government, banks, insurance agencies and the enterprises. Only by doing so can the booming and flourishing of small and medium-sized enterprises be improved, thus changing their disadvantageous situation in the economic life.