Small And Medium Enterprises Also Need To "Save Themselves" To Ease Their Financing Difficulties.

Since the reform and opening up, China's small and medium-sized enterprises have been developing rapidly, playing an increasingly important role in the entire national economy, and making outstanding contributions to China's economic growth.

But compared with the rapid development of China's small and medium-sized private economy,

However, in dealing with the old problem of financing difficulties for SMEs, we should not stick to the shackles of traditional concepts. We should not only increase the intensity of tilt from the perspective of national policies and banking services, but also look for countermeasures from the perspective of enterprises themselves.

As a matter of fact, there are many reasons for the shortage of funds in small and medium-sized enterprises, which include both macro policy and banking factors as well as enterprises' own factors.

Most SMEs lack the guarantee of Bank approval.

At present, the collateral that banks recognise are mainly tangible assets such as real estate, land and so on, while small and medium-sized enterprises, especially small businesses, are in the initial stage of their development. At this stage, assets are scarce. This is the main reason for the financing difficulties of small and medium-sized enterprises.

Because of historical reasons, some enterprises' credit consciousness is still weak.

Some companies feel that it is normal for them to pay a few days later, and even if they are rich, they do not want to return bank loans. This is an important reason why small business financing can not be secured by credit.

Small and medium-sized enterprises' capital gains are incommensurate, affecting banks.

The construction of enterprise management is lagging behind, and banks lack sufficient judgement.

In addition, the modern enterprise system of most small and medium-sized enterprises has not yet been fully established, and its financial system construction and management are not standardized.

According to a survey conducted by the Agricultural Bank of China, 80% of small and medium enterprises' financial statements are untrue or no financial statements. The rate of interest recovery of SMEs is 43%, which is bound to restrict their own development, resulting in financing difficulties.

In recent years, the development of small and medium-sized enterprises has always been highly valued by governments at all levels and the relevant parties. The policy pays more attention to continuity, more emphasis on implementation, and the high gold content of policies, which has created a larger space for the development of SMEs' financial services.

As the most important force of financial services for small and medium-sized enterprises, the scale of financial services of small and medium-sized enterprises in banking institutions has maintained a sustained growth since 2009, and surpassed the average growth rate of corporate loans.

At the same time, both small and medium enterprises loans or small business loans have increased their proportion in corporate loans, showing a good situation of double growth in scale and proportion.

Comprehensive situation shows that the external environment of SME financing has improved significantly. Then, from the perspective of SMEs, to solve the problem of shortage of funds, we should first establish the sense of capital of modern enterprises, enhance the concept of time value and capital cost, optimize the assets structure of enterprises, improve the financial situation of enterprises, do well in the cooperation between banks and enterprises, and obtain the right to use funds from various channels.

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Secondly, in order to improve the efficiency of capital use, SMEs must strengthen the management of internal funds, follow the principle of "living within their means", strictly enforce the examination and approval system of "one pen", strictly plan and control, strictly control the scope of operation, strictly examine and analyze, reduce losses and waste, and gradually pform the management of capital from "rule by man" to "rule by law", so as to achieve the purpose of institutional financial management.

According to the survey, most of the liquidity of small and medium-sized enterprises is occupied by inventory. Therefore, inventory management should be targeted to reduce procurement costs and revitalize the working capital.

We should strengthen investment management and improve the efficiency of fund utilization.

Market economy is a competitive economy, and the rule of competition is survival of the fittest.

With the intensification of market competition and the pursuit of profit driven by enterprises, investment activities of SMEs are more frequent. The risk of investment requires SMEs to pay more attention to risk research and control and avoid risks when managing financial affairs.

Therefore, enterprises should have new ideas, strengthen investment decision research, ensure fast and efficient turnover of funds.

We should strengthen the management of accounts receivable and speed up the recovery of enterprise funds.

According to experts, capital recovery is the most important part of enterprises, and small and medium-sized enterprises should pay more attention to it.

If funds can not be recovered in time, many efforts will be lost.

Therefore, we must promptly settle funds and reduce accounts receivable.

At present, the wave of reorganization and merger is sweeping all over the world.

China's small and medium-sized enterprises should keep abreast of this trend and actively carry out mergers or joint ventures or joint ventures.

By merging some enterprises with abundant capital, they can solve their own financial difficulties and achieve this goal through joint ventures with other powerful enterprises.

Small and medium-sized enterprises can also actively introduce foreign investment, and become a Sino foreign joint venture through restructuring. On the one hand, they can increase their financial strength, and on the other hand, they can learn advanced management experience and technology from other countries.

Small and medium-sized enterprises (SMEs) are important forces in the development of local economy, especially in solving the problem of employment in China.

It is reasonable to believe that through the efforts of the government, banks and enterprises themselves, the financing difficulties of SMEs can be solved through multiple channels.