Research on Financing and Decision from Micro Enterprises in China —Based on Internet Financial Model Perspective

At present, the financing of small and medium-sized enterprises in China’s market economy has caused great concern of the whole society. Small and medium-sized enterprises financing difficulties directly affect our country to complete the “public entrepreneurship, people’s innovation” goal. There are many reasons for the financing difficulties of SMEs, such as the small and medium-sized enterprise’s financing characteristics, the state of small and medium-sized enterprise service system construction, financial institutions and credit evaluation mechanism of our country enterprise credit system etc. This paper argues that there are three reasons for the financing difficulties of SMEs: The first is the asymmetry of information between the two sides of the credit; secondly, the cost of the loan is huge. Finally, it is difficult to control credit risk. Therefore, in order to solve the problem of financing, we should focus on three aspects: Credit information, cost reduction and risk control. Internet banking model is not a traditional bank indirect financing model, nor is it a direct financing model on the capital market, but a multiagency cooperation to complete a new financing model. This model is convenient and rapid; it provides a feasible way to solve the financing difficulties of small and medium-sized enterprises, which can greatly improve the current financing environment.