The Study Of The Operation Mechanism Of Miro-credit Companies In China

In 2005,the government of China began to set the micro-credit companies.Since then,the arise of the micro-finance companies made up the deficiencies of financial service system,doing great contributions to solve the financial problems in small,medium-sizes companies and farmers.However,the report,released by The people's bank of China in June 2016,shows that the number of small loan industry practitioners,loan balance,the number of agencies,the registered capital have seen substantial decline.External operating environment puts a great pressure in the companies,and it turns out to be the financial problems,such as the decline of the income,the rising of the bad debts.Under this condition,it is of great significance to study the general operation mechanism of micro-finance companies in China,to explore the effective way to deal with risks,and to realize the sustainable development of microfinance companies.This paper is about the commercial microfinance companies in China.This paper firstly describes the research at home and abroad related to the small loan businessand the companies.Then the essay introduces the operation mechanism and the problems of the small loan business in China,such as the bad services to the target customers,weak controlling to the risks from the customs and environment.While Kabbage Inc.,,a small loan company in the United States,exploresa unique operating mechanism.To offer the loan relying on the US environment,it uses the big-data technology to control the risks and serve the costumes very well.At the same time,it provides technical support and data analysis service to other organizations all around the world and achieves their own sustainable development.This provides a way and a model for solving the current difficulties of the microfinance industry in China,On this basis,in order to solve the problems,the author puts forward some suggestions on the government about how to improve the external operation environment of microfinance companies,and some suggestions on the small business loan company about how to improve the internal operation mechanism of microfinance companies in China.