Fintech,Commercial Credit And Financing Constraints Of SMEs

In recent years,the vigorous development of financial science and technology has enabled China’s financial sector to constantly adapt to high-tech,and financial science and technology has developed vigorously.In 2021,China clearly pointed out in the outline of the "Fourteenth Five Year Plan" that we should continue to explore the development of financial technology and help financial institutions to rapidly transform to the digital direction.At the same time,the Fourteenth Five Year Plan for Promoting the Development of Small and Medium sized Enterprises focuses on the growth of small and medium-sized enterprises.As an important part of China’s economic system,small and medium-sized enterprises have made great economic contributions,which play an irreplaceable role in promoting China’s economic growth,attracting employment and promoting effective social competition.While expanding the scope of financial services and improving the efficiency of financial services,Fin Tech has also brought a certain impact on SMEs in China.Therefore,whether Fin Tech can help small and medium-sized enterprises in prison to alleviate financing difficulties and expensive financing issues is considered.In the theoretical analysis of the impact of financial technology on SMEs’ financing constraints,this paper combines the functional role of financial technology with the root causes of SMEs’ financing difficulties and expensive financing,and believes that financial technology is a rapid integration of information,which can help SMEs alleviate information asymmetry with financial institutions,reduce transaction costs,and improve the financial structure.Financial technology can also help small and medium-sized enterprises grow,adapt to the digital era,and transform to digital.In the impact path analysis,from the perspective of informal financial financing,this paper finds that commercial credit is one of the important financing channels for SMEs.Therefore,it will study whether financial technology with information advantages can affect commercial credit,thereby affecting the financing constraints of SMEs.Based on the above thinking,this paper will take the impact of financial technology on SME financing constraints as the research object,and further study its existing mechanism if any.From the literature research and theoretical analysis,we can understand the development status of China’s financial technology and SME financing.In the empirical study,the text mining method was used to construct innovative indicators to measure the level of financial technology development of enterprises from a micro perspective.Using the data of 809 SMEs listed on the board from 2015 to 2021,the fixed effect model was used to empirically analyze the impact of financial technology on the financing constraints of SMEs,and the impact on SMEs with different property rights and different life cycles.In consideration of measurement errors,missing variables,self selection of samples and other issues,this paper uses a variety of methods such as replacement of key indicators,propensity score matching,continuous double difference method,system GMM method,and tool variable method with financial technology lagging one as the tool variable to test the stability.In the mechanism test,this paper creatively analyzes the role of commercial credit in financial technology to ease the financing constraints of SMEs from the perspective of informal finance,using the intermediary effect model.The research shows that:(1)Fin Tech has a significant mitigating effect on the financing constraints of SMEs.(2)The mitigation effect of Fin Tech on SMEs with different property rights is heterogeneous.(3)The mitigation effect of Fin Tech on SMEs in different life cycles is also heterogeneous.(4)Financial technology affects the financing constraints of SMEs by improving the value of commercial credit,and the value of commercial credit has played a role in promoting to a certain extent.After the background research,literature research,theoretical analysis and empirical analysis,the following policy recommendations are put forward according to the research conclusions:(1)China actively promotes the implementation of financial science and technology,improves the construction of financial science and technology infrastructure,and pays attention to the training of financial science and technology talents and improves the talent introduction policy while financial science and technology plays a role.While Fin Tech plays a role,we should also focus on improving the supervision system of Fin Tech to ensure that Fin Tech is implemented within the scope of monitoring.(2)Small and medium-sized enterprises should establish enterprise credit database with the help of digital technology of financial technology to convert capital flow for small and mediumsized enterprises,and then protect commercial credit financing.(3)SMEs should improve the quality of enterprise information disclosure,promote their own development with the help of financial technology platforms,and break through the restrictions of enterprise property rights and cycles.With the concerted efforts of the government and small and medium-sized enterprises,we will be able to better boost China’s high-quality and highvolume economic development.