The Application Of Asset Securitization In The Financing Of Small Loan Companies

At present,the operation of microcredit companies in China is expanding rapidly.However,it is constrained by the fact that “only loans are not available” and banks cannot exceed the 50% quota of registered capital,narrow financing channels,and inadequate government support,resulting in microfinance.The company has a shortage of funds.As a result,Micro-credit Companies' financing tools need to be innovated as soon as possible.Based on the theory of asset securitization and the theory of corporate finance case analysis,H small credit asset securitization financing,for example,analyze the advantages and disadvantages,and provide reference for subsequent small loans company asset securitization financing.This paper at first introduces the securitization related concept and H small loan financing background and design patterns of asset securitization,around the small credit asset securitization case analysis the company H H small loan company asset securitization financing characteristics,benefits and risks,summarizes its characteristics.The reason why H small loan company develops asset securitization financing is because of its business expansion and less financing channels.Through analysis,H small loan company asset securitization financing conditions are the core of its good credit assets,asset securitization introduced cycle is critical to the success of the purchase transaction structure,and take the appropriate credit credit,measures to ensure smooth securities issue.Through asset securitization,H microfinance has successfully reduced the financing cost,optimized the structure of assets and liabilities,and effectively alleviated the capital pressure of H microfinance company.However,there are still some problems in the process of asset securitization of H small loan company,such as revolving transaction risk,insufficient liquidity of asset securitization products and mixed funds.Through the analysis of these problems,and puts forward to strengthen the management of credit risk,strengthen the promotion of asset-backed securities,establish regulatory capital account,actively expand the scale of loans,to reduce the operating cost,design targeted microfinance products and services such as policy recommendations.