The financing predicament and solution way analysis on the small and medium-size

Abstract. This paper elaborates financing problem present situation of our country in the development of the small and medium-sized enterprise of coastal areas in present stage, it studies and analyzes the bad influence caused by the financing predicament profoundly and points out the production money influence for the daily operation of the small and medium-sized enterprise of coastal areas clearly. This paper also puts forward some suggestions and views on the solution way of the financing predicament of the small and medium-sized enterprise of coastal areas to help the small and medium-sized enterprise of coastal areas to solve the problem of financing predicament, build the virtuous financing system and financing mechanism of the small and medium-sized enterprise of coastal areas and promote the steady development of the small and medium-sized enterprise of coastal areas to implement China's economic take-off.

Key words: coastal areas; the small and medium-sized enterprise; financing predicament; the solution way; analysis.

Along with the deepening of international development trend, the small and medium-sized enterprise becomes the mainstay of economic development in China. Especially the small and medium-sized enterprise in coastal areas, the number holds the obvious base advantages and the economic contribution rate is higher. It has the absolute comparative advantage in the development of eastern area economy and plays a significant role in the development of the national economy.

1. The development current situation of the financing predicament of the small and medium-sized enterprise of coastal areas in China

The information technology of the small and medium-sized enterprise of coastal areas is strong, it can realize the effective utilization of resources and promote the development of reform and innovation constantly. Thus, we can see from it that the small and medium-sized enterprise becomes the driving force of economic development in the eastern coastal areas and even in the whole country and it is the indispensable effectives. There is no denying that there are still some problems and difficulties at this stage in the process of the development of the small and medium-sized enterprise of coastal areas in China and they seriously hinder the development of the small and medium-sized enterprise of coastal areas, among them the most prominent are the financing predicament problems.

1.1 The capital gap is bigger

Because the regional economic development speed is fast in China's eastern coastal areas, the small and medium-sized enterprise can access to the advanced knowledge of science and technology. And the high-tech products mean the higher social value to a large extent, so it puts forward the higher requirements and standards for the small and medium-sized enterprise development capital safeguard. But, the small and medium-sized enterprise itself has the tense capital chain under the competitive market environment. The sufficient capital is the guarantee to achieve the development goals of the small and medium-sized enterprise. It has become the important factor to realize the virtuous circle of the small and medium-sized enterprise.

1.2 The capital source channel is less

The main ways and methods of the capital introduction of the small and medium-sized enterprise of coastal areas are carried out in the form of bank loans or commercial loans. The capital source channel is less and it can’t meet the capital gap of the small and medium-sized enterprise of coastal areas. Although the bank loan interest is low, the link is more in the process of bank loan. The procedures of examination and approval have a long time and the qualification examination is more stringent for the small and medium-sized enterprise, so they are not conducive to the capital in place in time. And the commercial loan interest rate is higher and it is not conducive to the economic and social benefit realization of the small and medium-sized enterprise.

1.3 The credit financial market of coastal areas is chaotic

The small and medium-sized enterprise is an organic part of our country's economy and society and it is the market economy organization part which has the biggest impact in the economic institutional framework. It plays an important role in the social development. The development of the small and medium-sized enterprise of coastal areas is conducive to promote the development of society and economy and provide more jobs for the society to relieve the heavy pressure of employment in modern society effectively and increase the employment. However, the coastal areas lack the effective credit management mechanism and the credit finance market is chaotic in the present stage. Some small and medium-sized enterprises have the greater capital risk in the process of credit capital financing. The small and medium-sized enterprise of coastal areas will be faced with the capital gap more or less. Because the production scale of the small and medium-sized enterprise is small, the difficulty of financing is larger, the default rate of the small and medium-sized enterprise is higher and the life cycle is shorter.

2. The financing predicament cause analysis of the small and medium-sized enterprise of coastal areas

2.1 The small and medium-sized enterprise efficiency is low and the credit discrimination is serious

Because the small and medium-sized enterprise of coastal areas has the problems of insufficient management experience, weak foundation and low social and economic benefit, they cause the lower credit honesty for the financial credit institutions and form the credit discrimination for the small and medium-sized enterprise. They do harm to the overall trust of the small and medium-sized enterprise of coastal areas and it causes the overall assessment of the quality of credit assets is not ideal and it is not conducive to the financing of the small and medium-sized enterprise of coastal areas.

2.2 The risk resistance capacity is low and the asset-liability ratio is higher

The developing mode of the small and medium-sized enterprise of coastal areas lacks the modern management idea, the decision-making level is not high and it is unable to adapt to the market demand of social competition. In addition, the asset-liability ratio is higher and the industry organization is not reasonable. These cause the risk resistance capacity is low and it is easy to be swallowed up by the economic risks under the condition of market volatility.

2.3 The guarantee ability is insufficient and the property right is not clear

The assets are mostly carried out through borrowing and rental and leasing way. Their own property right distinction is not clear and it brings certain difficulties to the capital inventory of the financial institutions on the small and medium-sized enterprise financing credentials. Some small and medium-sized enterprise debt is higher in the process of operation and it weakens the guarantee ability of the small and medium-sized enterprise.

2.4 The product form of the credit financial institutions is relatively single

The product form of the credit financial institutions is relatively single, so it is unable to adapt to the different types of personalized development needs of the small and medium-sized enterprise and the product types of the credit institutions need to be enriched.

In addition, the government also lacks the related financing policy tilt and the law guarantee mechanism and it causes the small and medium-sized enterprise of coastal areas financing ability weakened.

3. Countermeasures on solving the financing predicament of the small and medium-sized enterprise of coastal areas

The financing predicament leads to the vicious cycle of production development of the small and medium-sized enterprise of coastal areas. How to solve the financing predicament has become the key to solve the bottleneck and it has the great significance for the social and economic growth.

3.1 Broadening the direct financing channels of the small and medium-sized enterprise of coastal areas to meet the diverse needs

The small and medium-sized enterprise is the industry economy organization which has the larger number in the eastern region and it involves in all aspects of social production and living, so they have different development levels and different capital needs. We should broaden the direct financing channels of the small and medium-sized enterprise of coastal areas and cultivate and improve the multi-level capital market system to meet the diverse needs to realize the differentiation characteristics of the small and medium-sized enterprise of coastal areas. Such as we can realize the capital needs of the small and medium-sized enterprise of coastal areas through establishing the informal financial institutions.

3.2 Building the brand construction of the small and medium-sized enterprise to improve the financing ability

As the main body of financial credit, the small and medium-sized enterprise of coastal areas occupies the important status in the whole process of financing and it is the key to the success of financing. We should increase the small and medium-sized enterprise's own strength constantly, enhance their market competitiveness, pay attention to the introduction and application of science and technology, update the management idea to realize the independent innovation with the modern management mode, optimize the product structure and constantly creat the brand construction. If we improve the strength of the small and medium-sized enterprise itself, we can response to market volatility effectively, enhance the ability to deal with market economy crisis and meet the capital gap of their own development.

3.3 Strengthening the honesty construction of the small and medium-sized enterprise and constructing the system of government supervision and guidance

To strengthen the honesty construction of the small and medium-sized enterprise, can improve the credit accumulation of the small and medium-sized enterprise of coastal areas constantly through the transparency construction of the management system to guarantee the smooth realization of the financial credit. At the same time, we should construct the system of government supervision and guidance and establish and improve the credit finance incentives to the small and medium-sized enterprise of coastal areas under the market economy system. For example, we can establish the multi-level credit guarantee mechanism to make the comprehensive evaluation for the small and medium enterprises to provide the money for the development of the small and medium-sized enterprise.

4. Conclusion

In short, the small and medium-sized enterprise is an organic part of our country's economy and society, along with the deepening of international development trend, it becomes the mainstay of economic development in China and plays an important role in the social development. It is the industry economy organization which has the larger number in the eastern region and it involves in all aspects of social production and living. How to solve the financing predicament and the solution way have become the key to solve the bottleneck, and it is of great significance for the social and economic growth. This paper analyzes the bad influence caused by the financing predicament profoundly and points out large production money causes the damage and unstable factors for the daily management of the small and medium-sized enterprise of coastal areas clearly. This paper also puts forward some suggestions and views on the solution way of the financing predicament of the small and medium-sized enterprise of coastal areas to help the small and medium-sized enterprise of coastal areas to solve the problem of financing predicament, build the virtuous financing system and financing mechanism of the small and medium-sized enterprise of coastal areas and promote the steady development of the small and medium-sized enterprise of coastal areas.

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