Research of Extending Small and Medium―sized Enterprise’s Financing Ways on the

Abstract. The problem that small and medium-sized enterprises lack of effective financing ways has interfered with the development of our national economy. This paper is to state the current situation of the fund predicament from the latest situation of economy’s transformation and upgrade. And furthermore the article is to explain that through financial innovation， more small and medium-sized enterprises will obtain effective suggestions and measures by making use of new financing forms such as， small and medium-sized enterprise set bonds， industrial chain cluster financing and corporate finance disintermediation. The measures suit situations and characteristics of Chinese small and medium-sized enterprises’ financing ways.

Key words： Small and medium-sized enterprise； Financial Innovation； Financing ways

1. The transformation of the mode of economic growth is necessary for China's economy

After 30 years of China's economy’s rapid development， "shortage of laborers" in southeast coastal labor-intensive industry declared that traditional ways of relying on labor cost advantages resulted from demographic dividend will come to an end. Therefore， when our country made a five-year plan from 2011 to 2015， we have been clear about necessity to speed up the transformation of the mode of economic development which act as the main line， adhere to the main direction of the strategic adjustment of the economic structure as to speed up the transformation of the mode of economic development， which aim at the prominent problems and deal with new changes according to China's basic national conditions and new features in development stage， and it is great significance of finishing the five-year plan from 2011 to 2015 and realizing long term， fast and steady economic growth. [1]

2. The Fund Predicament of Small and Medium-sized Enterprises’ Transformation

To make China to get rid of embarrassing images of inferior quality， low price and fighting with each other by relying on price and enhance product added value and quality enterprise's development must be directed at the ability of independent innovation. But for a great number of small and medium-sized enterprises that， if there is no capital support， transformation is intentional and weak so they can only continue to stay in the original development mode. In our country small and medium-sized enterprises satisfy the fund demand business for enterprise management and development mainly through the endogenous financing and exogenous financing at present. Endogenous financing ways mainly manifests that enterprises constantly will invest retained profits， investment income， accrued depreciation and the additional investment of the original shareholders into production and operation which is enterprise internal "hematopoiesis" function. Exogenous financing ways mainly manifests that enterprises get capital input through the external economic main body， and transform it into the process of this enterprise investment including the equity financing and debt financing which is embodied that enterprises issue stocks and bonds in the stock market， get loans through the financial institutions ， receive money through the introduction of new investors or transfer partial equity， borrow money through the folk financing and usury to solve the urgency， and all of these belong to enterprises’ "blood transfusion" function from external to internal. In current situation， the endogenous financing is enterprises’ own convenient financing way but the amount of money provided depends on its own conditions， usually limited and unstable so it is difficult to meet all fund demand of the small and medium-sized enterprise in the modern economic society. Exogenous financing will be the main way for small and medium-sized enterprises to get money.

1、small and medium-sized enterprise set bond

Small and medium-sized enterprise set bond is defined as a bond that a number of Chinese small business work as a bond issue subject to determine the amount of bond issue， adopt the form of set bonds， use unified bond name to form a general distribution line and issue a kind of enterprise bond. It is the new way of enterprise bonds which regard banks or securities institutions as underwriters and get guarantee from agencies and ask the rating agencies， public accounting firms， law firms and other intermediary organizations to participate in. [3] One of the key problems which restrict small and medium-sized enterprise issue bonds financing is that the enterprise financial status is relatively poor， and small and medium-sized enterprises’ own size is limited， and financing scale of a single enterprise issue bonds is too small with high issue bonds cost， and they do not have maneuverability in the secondary exchange market circulation with low efficiency financing， high cost and poor liquidity. Because of this， we have attempts of issue bond financing of a few small and medium-sized enterprises in Shenzhen， Beijing， Dalian， but we are always just in the pilot stage and these ways have not been able to become better choices feasible financing way of small and medium-sized enterprise with growth prospects. In practice， it seems that the only large enterprise is the first choice for public enterprise bond financing.

To solve problems of the small and medium enterprises’ issuing set bond， the key is to improve set bond financing scale and structure of enterprise’ financing and optimize the set bond investment index. At present in our country set bond financing scales in a few of small and medium-sized enterprise are small， which go against distributing trade risk and the cost of unit is high. In 2007， for example， in Zhongguancun， only four high-tech small and medium enterprise issue set debt， and industry distribution is relatively single， and systemic risk of debt collection is higher. We ca use the ways of financial innovation in the United States capital market for reference that a number of relatively good small and medium-sized enterprise of many industries are "packed" into a set bond financing subject， so the scale of set issue of bonds not only can be promoted and realize scale economic benefit but also credit rating of set bond can be improved by using the set bond internal extensive industry distribution structure to effectively evade the systemic risk in the industry. And the enlargement of scale of set bond will be more conducive to set bond in exchange listed transactions， and enhancement of liquidity will be more attractive to set bond buyers.

2、Industrial Cluster Financing

The "industrial chain cluster financing" refers to the small and medium-sized enterprise in the same industry chain form benefit entity through some mutual participation or signing an agreement to establish "group" or "alliance"， and through the "group" or "alliance" internal balances， reduction of the information asymmetry and financing cost. It is a kind of financing way of "group" or "alliance" obtain external funding support. [4]

The advantages of industrial cluster financing are largely overcoming the single small and medium-sized enterprise’s small financing scale and asymmetry external information and being difficult to implement high mortgage guarantee of the financing risk. Through form a financing entity of several small and medium-sized enterprises with difficulty to finance in the same industry chain， the enterprises bear joint and several liability according to their proportion of total funds in the "group" or "alliance" to form interest unity in the whole industry chain. Relying on advantages of gaining information and interacting relationship in the cooperation between enterprises in the industry chain enterprises form a self supervision mechanism of internal benign in financing body so as to greatly improve their financing financial status. Once a certain enterprise of the financing "group" or "alliance" damages the "group" or "alliance"， the rest of the enterprises will warn them to operate in accordance with the "group" or "alliance" interests by using constraint relationship between the cooperative enterprise within the industry chain. And even they can even freeze on the enterprise’s payable accounts or suspend collaboration of the enterprise within the industry chain and through the "group" or "alliance" internal restriction mechanism moral hazard can be effectively avoided. At the same time， as long as the enterprise of industry cluster cooperate well and make good use of financing opportunity to make the whole industry chain become bigger and stronger ， each enterprise of the industrial chain can benefit. Once they step in the virtuous road， the credit rating will get promoted， and in the future getting exogenous financing support is no longer a difficult problem so the financing difficulties will be readily solved.

3、Corporate Finance Disintermediation

Corporate finance disintermediation is refers to the capital adequate supplier company through the provision of goods， and allow buyers defer the payment of a kind of economic phenomenon， corporate finance disintermediation through the enterprise accounts payable and accounts receivable or commercial credit to solve the small and medium-sized enterprise financing difficult problem. Corporate finance disintermediation the form of big companies to small and medium-sized enterprises to provide the capital goods or provide， also is the trade credit form or the seller in the form of financing， and both often appear together， in a big company financial statements is behaved for accounts receivable， namely to buyers to provide credit. [5]

At present in our country whether bank credit capital or direct financing capital supply of capital market flow into large enterprises， and it is difficult to change the pattern in a short time. The whole economic and social capital is not designed for large enterprises just because small and medium-sized enterprise financing conditions are comparatively inferior and capital provider's rational choice， which just make large enterprises become the social capital "pet". Big enterprises greatly enjoyed social capital supply in a low cost then they play a role of financial intermediary for small and medium-sized enterprises who buy the goods of big enterprises and so more small and medium-sized enterprises can indirectly get the support of the social capital. Large enterprises in corporate finance disintermediation process are not just "living Leifeng"， and they can also get a lot of benefit. Large enterprises require small and medium-sized enterprise to pay a higher price than the timely payment by allowing small and medium-sized enterprises’ deferred payment and the difference is equivalent to the interest income of the accounts put to small and medium-sized enterprises while it is very difficult for small and medium-sized enterprises to obtain bank credit， and the fund demand is mainly the liquidity demand so corporate finance disintermediation just meet the needs of the small and medium-sized enterprise. At the same time， the government can also provide certain preferential tax policies for large enterprises who offer corporate finance disintermediation， such as setting a lower discount rate or offer holdover in order to stimulate large enterprises to engage in corporate finance disintermediation. In addition， the government can formulate regulatory documents about corporate finance disintermediation on the base of experimental units to realize a win-win situation between the large enterprises and small and medium-sized enterprises.

To small and medium-sized enterprise’s financing problems needs efforts from the government， the enterprises， financial institutions and we need to make constant attempt and innovation and have determination to move forward constantly. In order to create a good business environment for small and medium-sized enterprises we need to create a social economic environment with perfect social credit and various financing channels and need every relevant cooperation to provide a health financing system for the medium and small sized enterprises. Only in this way can we make good use of financial innovation to avoid disadvantages to fundamentally solve the financing problems of small and medium-sized enterprises and promote better and faster development of small and medium enterprises so as to boost China's economic upgrading and transformation.

References

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4. Wang Feng-juan， An Guo-jun. The Cluster Financing - the New Thought of Small and Medium-sized Enterprise to Deal with the Financing Problem in Financial Crisis [J].China Finance，2009：21.

5. Su Guo-qiang. Financial Crisis， Financing Predicament of Small and Medium-sized Enterprise and Corporate Finance Disintermediation [J]. Journal of the Central University of Finance and Economics， 2009：11.