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The Analysis of Credit Guarantee for the Financing of SMEs

Dan Xiang

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Abstract

This paper analyzes the status quo of credit guarantee system for domestic SMEs when they apply for bank financing,and then points out the deep-rooted reason is that guarantee system mechanism is illogical,and therefore the credit guarantee resource can't be used sufficiently.Finally,the authors suggest that the structure of credit guarantee system should be reformed,and the government's guarantee company should be withdrawn.

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This paper analyzes the status quo of credit guarantee system for domestic SMEs when they apply for bank financing,and then points out the deep-rooted reason is that guarantee system mechanism is illogical,and therefore the credit guarantee resource can't be used sufficiently.Finally,the authors suggest that the structure of credit guarantee system should be reformed,and the government's guarantee company should be withdrawn.

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Available abstract

This paper analyzes the status quo of credit guarantee system for domestic SMEs when they apply for bank financing,and then points out the deep-rooted reason is that guarantee system mechanism is illogical,and therefore the credit guarantee resource can't be used sufficiently.Finally,the authors suggest that the structure of credit guarantee system should be reformed,and the government's guarantee company should be withdrawn.

Key concepts: Status quo, Business, Government (linguistics), Finance, Mechanism (biology), Financial system, Economics, Market economy

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