Financing of small and medium-sized enterprises refers to the behavior of raising funds economically and effectively through financing channels and capital markets according to the needs of their own production and operation, foreign investment and capital structure adjustment. The financing risk of small and medium-sized enterprises refers to the possibility that the economic subject providing financing services cannot recover the principal, interest or remuneration on time, and its related rights and interests will be damaged. The fund-raising risk mentioned in this paper is not a pure risk that will only cause losses, but a speculative risk, which may not only bring opportunities and gains, but also hide threats and risks that may cause losses. Compared with large enterprises, the financing risk of small and medium-sized enterprises is more complicated and more likely. Therefore, the identification and prevention of financing risks of small and medium-sized enterprises is the focus and key to solve the financing problems of small and medium-sized enterprises.
Second, the main risks of SME financing
The financing risk of small and medium-sized enterprises mainly means that the financing behavior of small and medium-sized enterprises is hindered due to various uncertain factors. Compared with large enterprises, small and medium-sized enterprises can only raise short-term funds in most cases because of their own credit disadvantages and institutional reasons. However, due to its high cost and temporality, small and medium-sized enterprises often face the dilemma of development and repayment. If you don't raise funds in time, you will stop production or even close down. On the whole, the main risks faced by SMEs in the financing process come from external risks and internal risks.
(1) Financing risks from outside the enterprise. The government, banks, evaluation agencies and notary agencies are the main stakeholders and participants in SME financing, and their social, political and economic activities have great influence on SME financing, so the risks from them basically constitute the main risks of SME financing.
1. Financing risks brought by changes in national policies. First, the change of the country's foreign political and economic outlook and diplomatic friction may lead to the deterioration of the external financing environment of small and medium-sized enterprises and the weakening of their solvency; Second, the adjustment of domestic economic and financial policies will have a certain impact on the production and operation, market environment and financing forms of SMEs. If small and medium-sized enterprises can't respond and adjust in time according to the policy changes, it may restrict or restrict the business activities of some small and medium-sized enterprises, which will eventually lead to the failure of these small and medium-sized enterprises to use funds and repay funds as expected. For example, energy-saving and environmental protection enterprises supported by national industrial policies can get better credit support, and the risks of direct financing and indirect financing are smaller; On the other hand, the state restricts the credit support for "high pollution and high energy consumption" enterprises, and such small and medium-sized enterprises face the risk of losing external financing channels.
2. Financing risks brought by banks. The risks of banks mainly come from the following aspects: First, the risks brought by the increase in loan interest rates. Because banks raise the loan interest rate, the financing cost of small and medium-sized enterprises increases, and enterprises are overwhelmed, which leads to the possibility of debt repayment; Secondly, the risks brought by improper loan timing. Due to the cumbersome or inefficient bank loan procedures, loans can not be issued to enterprises in time, which leads to the failure of enterprises to use loans normally, which makes enterprises suffer losses, which in turn leads to the decline of their solvency; Finally, the risks caused by poor moral and legal awareness of bank managers. When issuing loans, improper requirements are put forward for enterprises, which indirectly increases the loan cost of enterprises.
3. Financing risk caused by unfavorable credit evaluation. When an enterprise raises funds, it generally needs an asset appraisal agency to issue an asset appraisal report and a capital verification report on its assets, and to issue a notarial certificate on the ownership of its property rights and related matters. Therefore, the credit rating of SMEs directly affects the financing qualification, financing scale and financing cost of SMEs. The reality in China is that SMEs are obviously at a disadvantage in credit rating. First, the credit rating system and credit rating agencies specifically for small and medium-sized enterprises are not perfect, and it is impossible to produce objective and comprehensive asset evaluation reports, capital verification reports and notarization reports, which leads to insufficient basis for banks to issue loans and wrong loan decisions; Second, the financing intermediary agencies such as evaluation agencies and notary agencies charge too much, which makes the financing cost of enterprises too high; Third, some appraisal agencies and notaries violated professional ethics, ignored national laws and regulations, and deliberately issued false capital verification reports and notaries, resulting in the loss of credit funds.
(B) Financing risks from within the enterprise. There are mainly the following situations: First, manage risks. Due to the low management level and decision-making mistakes of small and medium-sized enterprises, it is easy to cause the loss of credit funds; The second is the risk brought by asset reorganization or divestiture. Investors in small and medium-sized enterprises can withdraw their investment in small and medium-sized enterprises in part or in whole according to their own situation and changes in market conditions, which leads to the reduction of enterprise capital, weakening of operating strength, disrupting the normal business order of enterprises, and making it difficult for enterprises to achieve their expected income targets; The third is the risk of market competition. The market is ever changing. The quality, performance and price of similar products of small and medium-sized enterprises are constantly changing in the market. The fluctuation of the market price of its products will inevitably affect the realization of the expected income of enterprises, and the decrease of income will naturally weaken the solvency of enterprises.
Third, the causes of financing risks of SMEs
Small and medium-sized enterprises face many risks, which are influenced by internal and external factors. In terms of internal factors, most small and medium-sized enterprises have just started and developed in recent ten years, with relatively weak allocation of capital and human capital, imperfect internal management system and weak ability to control uncertain factors in fund-raising business; Externally, the reform of China's economic system and financial system is still in progress, and the adverse effects of system and environment exist objectively, which increases the uncertain factors that lead to fund-raising risks.
Institutional factors
1, the internal management system of SMEs is not perfect.
(1) The financial management of small and medium-sized enterprises is chaotic, which is not conducive to decision-makers to correctly formulate financing plans. The financial management of small and medium-sized enterprises is chaotic, and there are cases of making false accounts and making mistakes. Decision-makers of enterprises can't know the operating conditions of enterprises timely, accurately and comprehensively through financial information, and make improper financing decisions, which increases the financing risk.
(2) SMEs have limited financing channels and a single way. Small and medium-sized enterprises have little liquidity, and in order to speed up their development, most of them use debt financing. However, if the debt exceeds the affordability of the enterprise, it will not only accelerate the development of the enterprise, but also affect the normal operation of the enterprise. The proportion of short-term liabilities of small and medium-sized enterprises is too large, which makes it impossible for enterprises to make long-term investments and often faces the pressure of debt repayment. Moreover, small and medium-sized enterprises are small in scale and have limited profitability; Operating income is unstable; The ability to obtain cash is weak and the cash flow is small. Therefore, SMEs have limited solvency and insufficient credit. The problems of small and medium-sized enterprises make it difficult for them to raise funds from financial institutions. The lack of financing channels increases the financing cost and the difficulty of financing risk management.
(3) SMEs do not pay attention to the application of financial instruments, which increases the cost and risk of financing. For example, when the interest rate is low, financing is more favorable, but excessive financing caused by overheated investment should be avoided; When the interest rate is in the transition period from low to high, we should raise long-term funds according to the capital demand and try our best to adopt the interest-bearing method of fixed interest rate. Or conversely, if a company goes to the auditorium in Dallas and violates the economic laws, it will increase the financing cost of the company, thus increasing the financing risk.
2. The domestic financial system and legal system are not perfect. China's capital market is still in the development stage, and it is not perfect. As far as the domestic financial and legal systems are concerned, the living environment of small and medium-sized enterprises is not ideal: the credit environment is not perfect, the financial market is not developed enough, and the supervision system is not effective enough. Although governments at all levels have also set up some government funds for small and medium-sized enterprises, the operation of government funds lacks the necessary guarantee system and fund management experience, resulting in inefficient use of funds.
(2) Conceptual factors. Honesty and trustworthiness, fair competition, operating according to law and paying taxes according to regulations, these ideas of managers can be said to be the guarantee of enterprise life. At present, in the production and operation of small and medium-sized enterprises, the quality of personnel is generally low, and there are widespread phenomena such as luck, lack of integrity, counterfeiting, shoddy, and even price fraud, debt evasion, and breach of contract, which leads to the low reputation of small and medium-sized enterprises, thus making the intervention of commercial financial institutions very cautious.
Four, small and medium-sized enterprises financing risk prevention measures
The above-mentioned financing risks of SMEs are discussed at all levels. However, for the specific financing of each small and medium-sized enterprise, they show a whole financing risk, and various factors affecting the financing risk are quite complicated. Therefore, in terms of prevention and control, we can't just discuss preventive measures for a certain risk unilaterally, but should analyze the overall situation and adopt corresponding comprehensive coping strategies, effectively combine national policies and regulations, credit environment protection and the construction of risk management mechanism for SMEs, prevent financing risks, and then strengthen financing functions, so as to truly solve SMEs.
(1) National policies and regulations. The development of small and medium-sized enterprises is generally inseparable from the help of the government. Although the government generally does not directly provide financial support to small and medium-sized enterprises, it plays a role of policy guidance and link in the financing process of small and medium-sized enterprises. The government can support small and medium-sized enterprises through direct or indirect financing preferential policies, and can also provide financing support for small and medium-sized enterprises through guarantee or supervision. The following specific measures can be taken:
1. Formulate and improve relevant laws and regulations. Government policies and regulations are closely related to the financing channels of enterprises. Therefore, it is necessary to establish and improve China's legal and regulatory guarantee system as soon as possible. Treat small and medium-sized enterprises and large enterprises equally in laws and regulations, and comprehensively formulate small and medium-sized enterprise guarantee law, small and medium-sized enterprise financing law, social credit management basic law, venture capital law and other laws and regulations on the basis of the small and medium-sized enterprise promotion law. So as to improve the supporting laws and regulations of the SME Promotion Law. In these laws and regulations, firstly, there should be provisions to give support and preferential treatment to the financing of small and medium-sized enterprises as an important part of the whole industrial policy; Secondly, it is an important link to expand the financial market system and promote financial service innovation to make provisions for financial institutions that provide financing services for small and medium-sized enterprises, reduce restrictions on them and strengthen support for them. Improve the economic status of small and medium-sized enterprises and create a fair competitive market environment for them.
2. Establish policy banks for SMEs. Set up policy banks to serve small and medium-sized enterprises, make full use of the power of the government, ease the market financing difficulties of small and medium-sized enterprises, and guide commercial funds to intervene; The government funded the establishment of institutions to provide credit guarantees for small and medium-sized enterprises, reducing the risks of small and medium-sized enterprises in the financing process; In order to promote the internationalization of small and medium-sized enterprises, it is necessary to establish an export credit bank for small and medium-sized enterprises, and use the role of export credit insurance institutions to provide necessary guarantees for the export of small and medium-sized enterprises. Small and medium-sized enterprise banks should aim at preserving capital and making small profits, and have outlets all over the country to be close to and better serve small and medium-sized enterprises. Only by creating a good atmosphere for the development of SME credit business can other commercial banks have the confidence to follow up.
(2) Credit environment guarantee
First, strengthen the credit governance of small and medium-sized enterprises. The change of SMEs' credit status will enhance their credit rating and be in a relatively favorable position in the financing process, which can not only reduce the financing risk and financing cost of SMEs, but also reduce the credit risk of investors and creditors. According to the actual situation in China, strengthening the credit governance of small and medium-sized enterprises needs to start from the following aspects: continuously observing and recording various operating costs, loan default rate, loss given default, collateral liquidity rate and liquidity of various credit grades; Improve the collection system of credit information for small and medium-sized enterprises, speed up the construction of a unified national basic database of credit information, and form a nationwide credit information service network; Publicize and notify serious untrustworthy enterprises; Strengthen the coordination and cooperation between credit guarantee institutions and banks at all levels, credit guarantee institutions and small and medium-sized enterprises.
Secondly, on the basis of strengthening the credit governance of small and medium-sized enterprises, establish a credit guarantee system for small and medium-sized enterprises. At present, it is very necessary to establish a national, non-profit SME loan credit guarantee fund that operates independently and bears civil liability. In the initial stage, it provides credit guarantee for small and medium-sized enterprises, and its long-term goal is to establish a national credit system for small and medium-sized enterprises. This move will greatly promote the development of credit business of small and medium-sized enterprises in China.
(C) SMEs' own risk management mechanism. With the further deepening of the market economy, the market competition is becoming more and more fierce, and the types of risks faced by small and medium-sized enterprises in the financing process are also increasing. In order to promote the healthy and stable development of small and medium-sized enterprises in China, small and medium-sized enterprises must strengthen their internal management, improve their operational strength and broaden their financing channels.
First, strengthen the strength of small and medium-sized enterprises. Only by strengthening their own strength can small and medium-sized enterprises improve their social status and obtain the basic qualifications for market financing. Small and medium-sized enterprises should first strengthen internal management, improve system construction and improve corporate governance structure; Optimize enterprise structure and establish modern enterprise management concept; Establish a sense of competition, speed up technological innovation and product renewal, and improve profitability; Only by enhancing the transparency of information and establishing their own good credit can we gain the trust and support from all walks of life, reduce financing obstacles and reduce financing risks.
Secondly, further broaden the financing channels for SMEs. At present, the financing channels of SMEs in China are highly dependent on bank credit, and other financing channels are extremely scarce, which makes SMEs face great risks. In order to reduce the financing risk, SMEs need to further develop new financing channels. Small and medium-sized enterprises in China can start to consider corporate bonds, financial leasing, venture capital and direct investment from other enterprises. It should be noted that different financing channels have their own advantages and disadvantages and have a certain scope of application. In the choice of financing channels, small and medium-sized enterprises should analyze their own advantages and disadvantages according to their own actual situation and combined with the external environment, and carefully choose the appropriate financing methods.
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