Empirical Analysis Of Commercial Credit Financing For SMEs Performance On Dynamic Panel Model

The most small and medium-sized enterprises are faced financing difficulties. Because of their business characteristics, SMEs have high credit risk, and this led to hoarding behavior of Banks and other financial institutions. It is also difficult to obtain direct financing for small and medium-sized enterprises in China. Even if SMEs are listed on the gem, the need of capital cannot be met at the beginning of the list. In this context, the development of the commercial credit financing provides a new direction for solving the problem of financing of small and medium-sized enterprises in China.On the basis of the relevant research at home and abroad of commercial credit financing of SMEs, this paper introduced the meaning of SMEs and commercial credit, analysed the causes of financing difficulties of small and medium-sized enterprises, and elaborated the advantages of the commercial credit financing in small and medium-sized enterprise financing:convenient, flexible, unsecured, long maturity, etc. Then, the paper established a static panel model and a dynamic panel model in order to solve the endogenous. Lastly, from the views of commercial credit financing obstacles and countermeasures, the paper has discussed how to take advantage of commercial credit in small and medium-sized enterprise financing. The paper is aiming to guide the enterprise to use commercial credit financing reasonably, build and perfect the system of commercial credit, open up more avenues for the development of enterprises financing channels.