Breaking through Fund Bottleneck to Exert the Role of Credit Reference into Play——Positioning and Role of Small Loan Company in the “KAI XIN Loan” Business

The business of small loan companies in China is subject to numerous restrictions,including the bottleneck of fund. Owing to no absorbing public savings,restriction of debt ratio,profits prohibited to be directly used for loan extension,etc.,many small loan companies have no sufficient funds to grant loans. KAI XIN loanbusiness initiated in Jiangsu Province combines onlinewith offlinebusinesses; onlinebusiness is to match the funds between borrowers and lenders and make settlements,whileofflinebusiness is to make credit reference and get guaranteed by small loan companies. Small loan companies adopt a credit reference model ofaccess to information through the human relationship,which is determined by the characteristics of small corporate information and socio- cultural features in China. Kai Xin loanbusiness exerts prominently the role of credit reference in small loan companies into play,breaking through the bottleneck of fund and giving an effective solution to the problem that the investors find nowhere to invest and the borrowers face financing difficulties,which is a very successful small business financing model.