中小企业融资难外文资料与翻译

中小企业融资渠道中英文对照外文翻译文献Title: Financing Channels for Small and Medium-sized Enterprises: A Comparative Analysis of Chinese and English LiteratureIntroduction:Small and medium-sized enterprises (SMEs) play a crucial role in driving economic growth, job creation, and innovation. However, they often face challenges in accessing finance due to limited assets, credit history, and information transparency. This article aims to provide a comprehensive analysis of financing channels for SMEs, comparing existing literature in both Chinese and English.1. Overview of SME Financing Channels:1.1 Bank Loans:Traditional bank loans are a common financing option for SMEs. They offer advantages such as long-term repayment periods, lower interest rates, and established banking relationships. However, obtaining bank loans may be challenging for SMEs with insufficient collateral or creditworthiness.1.2 Venture Capital and Private Equity:Venture capital (VC) and private equity (PE) attract external investments in exchange for equity stakes. These financing channels are particularly suitable for high-growth potential SMEs. VC/PE investors often provide not only financial resources but also expertise and networks to support SMEs' growth. However, SMEs may face challenges in meeting the stringent criteria required by VC/PE firms, limiting accessibility.1.3 Angel Investment:Angel investors are wealthy individuals who provide early-stage funding to SMEs. They are often interested in innovative and high-potential ventures. Angel investments can bridge the funding gap during a company's initial stages, but SMEs need to actively seek out and convince potential angel investors to secure funding.1.4 Government Grants and Subsidies:Governments offer grants and subsidies to support SMEs' business development and innovation. These resources play a pivotal role in ensuring SMEs' survival and growth. However, the application process can be cumbersome, and the competition for these funds is usually high.1.5 Crowdfunding:Crowdfunding platforms allow SMEs to raise capital from a large poolof individual investors. This channel provides opportunities for SMEs to showcase their products or services and engage directly with potential customers. However, the success of crowdfunding campaigns depends on effective marketing strategies and compelling narratives.2. Comparative Analysis:2.1 Chinese Literature on SME Financing Channels:In Chinese literature, research on SME financing channels focuses on the unique challenges faced by Chinese SMEs, such as information asymmetry, high collateral requirements, and insufficient financial transparency. Studiesemphasize the importance of government policies, bank loans, and alternative financing channels like venture capital and private equity.2.2 English Literature on SME Financing Channels:English literature encompasses a broader range of financing channels and their implications for SMEs worldwide. It highlights the significance of business angel investment, crowdfunding, trade credit, factoring, and peer-to-peer lending. The literature also emphasizes the role of financial technology (fintech) in expanding SMEs' access to finance.3. Recommendations for SMEs:3.1 Enhancing Financial Literacy:SMEs should invest in improving their financial literacy to understand different financing options and strategies. This knowledge will help them position themselves more effectively when seeking external funding.3.2 Diversifying Funding Sources:To mitigate financing risks, SMEs should explore multiple channels simultaneously. A diversified funding portfolio can help SMEs access different sources of capital while reducing dependence on a single channel.3.3 Building Relationships:Developing relationships with banks, investors, and relevant stakeholders is crucial for SMEs seeking financing. Strong networks and connections can provide valuable support and increase the likelihood of securing funding.Conclusion:Access to appropriate financing channels is crucial for the growth and development of SMEs. This analysis of financing channels for SMEs, comparing Chinese and English literature, highlights the diverse options available. By understanding the strengths and limitations of each channel, SMEs can make informed decisions and adopt strategies that align with their unique business requirements. Governments, financial institutions, and other stakeholders should continue to collaborate in creating an enabling environment that facilitates SMEs' access to finance.。

小微企业融资外文文献翻译the XXX credit to small and medium enterprises (SMEs)。

However。

micro enterprises (MEs) which are smaller than SMEs。

have been XXX。

using a path XXX finance。

such as family and friends。

due to the lack of access to formal finance。

Path dependence is also evident。

XXX finance.翻译：乌干达的小微企业融资：路径依赖和其他融资决策的决定因素XXX：Winifred XXX-XXX博士摘要：发展中国家的融资文献主要关注正规金融机构向中小型企业（SMEs）提供信贷的角色。

然而，小微企业（MEs）比SMEs更小，却被忽视了。

本文使用路径依赖框架，研究了乌干达小微企业的融资决策，识别了影响它们获得融资的因素。

研究发现，由于缺乏正规融资渠道，小微企业严重依赖非正规融资来源，如家人和朋友。

路径依赖也很明显，过去的融资决策和与非正规融资来源的关系影响了当前的融资决策。

本研究建议政策应着重改善小微企业获得正规融资的渠道，并促进金融素养，减少对非正规融资来源的依赖。

Access to credit is crucial for small and medium enterprises (SMEs) and micro enterprises。

as they are considered to be the main drivers of economic growth。

In e countries。

XXX role than SMEs。

XXX-agricultural self-XXX。

XXX due to the way they are XXX。

中小企业融资难外文翻译Sme financing problems related to the analysis First small and medium-sized enterprises financing status Reform and opening up china for 30 years of small and medium-sized enterprises obtained arapid development of enterprises 99 of the small and medium-sized enterprises of our countrymore than 60 GDP contribution tax over 50 provides 70 of import and export trade and80 of urban jobs. Small and medium-sized enterprises in our country is also an important powerof independent innovation 66 of invention patent 82 of new product development of smalland medium-sized enterprises from small and medium-sized enterprises has become the economicprosperity expanding employment adjusting structure promote innovation and new industriesof important strength. From 80 years since the outbreak of the international financial crisis the implementation ofthe positive fiscal policy and loser monetary policy but no small and medium-sized enterprisesfrom the proactive fiscal policy and moderate looser monetary policy benefit directly for instanceof the new 2008 225 million small loan only more than previous year but rose 1.4 only theloans increased 14.9 09 year three months of national credit increased 48 trillion includingloans to small and medium-sized enterprises increased amount only less than 5 .Current loanfinancing difficult hasbecome the bottleneck of restricting the development of small andmedium-sized enterprises and small and medium-sized enterprise production and managementfaced difficulties according to the state statistical bureau of statistics and letter until the and of2008 in the small and medium-sized enterprises of production or collapse closed accounts forabout 7.5the urban employment this situation is not only more difficult economic recoveryinfluence and directly affect the growth and development of people’s livelihood stable target .Inthis sense the international financial crisis under the impact of China’s economy could not reallylow the key is out of small and medium-sized enterprises vitality can be fully recovered. Second the sme financing reason analysis Sme loans and financing is a cosmopolitan should say see both from China and mechanismof medium and small and medium-sized enterprises there are three main reasons: first themedium and small and medium-sized enterprises small and medium-sized enterprises generallyweak awareness of honesty similar to a few of the common phenomenon may report on tax onsome less ugly statements in Banks this intersection some may form good-looking such loanspoint is reliable became a problem. But this approach is very adverse instead of enterprises thedevelopment of small andmedium-sized enterprises are not healthy we imagine if severaldepartments with all those together the first this enterprise is not sincere he will have a foothold.We manufacture and export-oriented smes in human resources technology capital marketenvironment faced financial crisis there was a huge pressure the development of it is the rootcause of the scientific and technological content of the enterprise the innovation ability of highenough to enter the market is weak the low threshold the fierce competition in the market willincrease these are not good for the development of small and medium-sized enterprises. Secondfrom the bank for small and medium-sized enterprise credit conditions stricter because we aremost Bands it is also considered commercial bank the risk of their own profits. To the end of2008 the small bad loans is higher than that of the entire banking industry relies low come mampasolving some problems bur the loans of the small and medium-sized enterprises like a bigproblem once countries will still enterprises especially those small problems once thebankruptcy nobody tube so the loan quality cannot guaranteed so in this management system toreduce the risks the bank will demand of small and medium-sized enterprises in providing enoughafter pawn dare loan. Another bank from the operation cost of small and medium-sized enterprisesdo loans will pay more manpower so also does not want to extend loans to small andmedium-sized enterprises A bank operating costs the half is labor cost small and medium-sizedenterprises especially do small very high labor workload but it is the benefit of different times.Third the sme financing channel is too narrow and small and medium-sized enterprisesin thecapital markets have direct financing ways of securities market including small plate and gemAnd private equity funds industrial investment funds venture investment funds risk investmentfunds and the bond market etc. But since the sept.25 2008 the small plate market securitiesissued after huachang chemical and closed the door just recently IPO to restart the IPO. But gemis “ten years” good sword people until now only be vivivdly portrayed. Although with gemlisting conditions but a lot of small and medium-sized enterprises to financing for manyenterprises it is still a luxury. In overseas small and medium-sized enterprises in the process ofgrowing only rely on bank loan financing many times is a venture investment risk or the help ofsmall and medium-sized enterprises in China however can grow in the basic of financingShenzhen has 3000 venture company with a registered capital of 6000 billion but no company iswilling to startup investment enterprise. Thecompany is more mature can the fancy of thesecurities market and gem. Third the sme financing difficulty in solving the problem a From the Angle of the government 1.The government should relax market access control reducing barriers let more smallerBands small and medium-sized enterprises in service for the strategic positioning og those smallBanks to bitter fleabane bitter fleabane. Dynamic development Now China is probably more thana hundred villages and towns of the bank bank established to improve the bottleneck of theeconomic investment county including improving agriculture development of small andmedium-sized enterprises and support will play a very important role. For existing fivestate-owned Banks. Should be encouraged to develop their own businesses for the financing of thespecialized agencies relax its has branches and encourage them in the land and county townshipeven closer to provide financial services and more convenient. 2.The government should help Banks to establish a credit system further reducing theirinformation cost in our country the central bank since 1998 enterprise credit system constructionwas started by the specialized agencies collection and storage sorting analysis and use ofenterprise credit information to guard against credit risks maintain stable financial marker In2006 the central bank andsmall and medium-sized enterprises credit system to establish the creditsystem hope to cover those and financial institutions have no credit relations of small andmedium-sized enterprises. Of course the credit system is not only by the government and nowhas some network company for example try to use labara. Com in online transaction informationinto small and medium-sized enterprises credit index the index of credit if out of the bank tofurther reduce the cost of information.. 3. The government should several of bank risk compensation the local interest riskcompensation mechanism and policy just compensation fund is to solve the sme financing wayand cannot be fundamentally solved. As to the end fujian province of bad loans is small loans6071 but the average level of banking is a two percent while a few risk compensation just to0.8 percent only a small part So many of bank risk compensation. As all of the loans to smalland medium-sized enterprises then according to the bank loans reduce its tax business taxincome tax reduction Countries can help enterprises to improve bank interest risk and return Ifthe loan losses the government formed by risk compensation fund to patch up it this makes bifbusiness loans and small and medium-sized enterprises loan to achieve the balance is the basicyields. 4.The government should activelypromote the multi-level capital market system in order tobetter satisfy all kinds of small and medium-sized enterprises include the financing needs ofenterprise. Different types of small and medium-sized enterprises the development stage isendless and same determines the sme financing needs is not the same So small and medium-sizedenterprises groups of differentiation determines the diversified financing needs then satisfy smefinancing demand also needs the various forms of financing mode such as bank loans bondsequity financing etc.200to 4 years in Shenzhen stock exchange medium plate founded bupromoting capital technology management and the effective factors of high quality as cultivatingboard also to promote the upgrading of industrial structure is playing a positive role. In October 2009 gem officially launched. Founded board will provide for independentinnovation promoting effective supervision mechanism of small and medium-sized enterprises inthe new development stage. But for more than for small and medium-sized enterprises are listed tosolve this kind of condition enterprise’s equity financing stock transfer to a valid theover-the-counter marker In 2006 China launched fei joint-stock company listing for trading ofsecurities companies entering the pilot work Besides the government shouldvigorously promotethe development of the bond market bond financing for small and medium enterprises to providemore convenient in the developed countries the bond market is the main financing financing inthe United States for example 2008 the company bonds is circulation stock circulation of 5 timeswith the United States Europe and other countries and regions in the bond market also has the bigdevelopment space. b From the bank angleIf rely on the existing in the banking financial products and sme loans to solve the difficulty infinancing smes is impossible we cannot change the present situation of small and medium-sizedenterprises so we would change our bank credit financial innovation is imminent. Currentlybanking is through the organization risk management technical innovation innovation andsecurity collateral product innovation so as to change the status of financing for smes. 1. Guarantee mortgage innovation Collateral shortage is small and medium-sized enterprisebiggest soft rib they could not buy a heap of the house and then prepare for security it is notrealistic to high-tdch enterprise as the core of assets should be their intellectual property righs thepatent righ and one on the market in technology creative team is the blood to support itsdevelopment as well as several pieces of the mortgagedproperty bur all need money to lendbank The small and medium-sized enterprises such an jiangsu cooperatives experiment widelywarehouse inventory impawn through a mortgage loan product Tianjing coastal rural commercialbank actively carry out enterprise sharehoulding pledge loan. benjing bank recently launchedintellectual property as a pledge from the bank for a loan. 2. Credit rating innovating Big Bnaks do business of time usually see a balance sheet anincome statement and a cash flow statement small and medium-sized enterprises have even thesthree tables are not high the bank information costs zhejiang tyrone arisen commercial Banksthey look for innovative water meter customs declaration form large large reduce cost still canmake small loans to earn enough money. Like Shenzhen development bank by focusing on theirOpponent’s credit transaction the authenticity of the enterprise chooses a new of enterprisescredit rating. For enterprises in the ctedit rating method for enterprises itself the credit ratingweight only 15. Pay more attention to the authenticity of the trading counterparty anddownstream of the raw material supply semi-finished products or services or transportation orlogistics can be easier to choose good credit are true of the enterprise trade background to provideenough goodservice mobilize various financial tools in the process of enterprise developmentshenfazhan also created the profits. 3. Business process innovation. Our country commercial bank the bank is mostly official inthe house wait for a loan to customers approval for a month three months such a kind ofmanagement such an examination result is impossible to small and medium-sized enterprisefinancial services it is impossible to improve the financing difficulties of small and medium-sizedenterprises. Banks to reduce threshold the other is to simplify the process reduce link establishexamination mechanism so as to adapt to the credit factory. The bank is factory small andmedium-sized enterprises is raw material into the line after the marketing sales and service withapproval and customer maintenance and post-loan management obtain loans. But Banks are not aperson guard line and batch production. Through the way of examination and approval proceduressimplified. Through this process to make sure that the smes credit approval from the cycle overthe past 2 3 months shorten to 3 5 days now. 4.Strengthening the training of personnel. After construction in mechanism to have a groupof people to do it and do it well it is to strengthen the training of the staff further strengthen thesme small business loans and high-tech smes job training and the loan ofcommunicationincreasing the entire product rampd efforts with the strain of new incentive and restraint measures toprofessional team and the new service. c From the Angle of enterprises 1 Enternises should strengthen management improve quality. To correctly understand thesituation face establish the risk by management effectiveness and development idea must paymore attention to technical innovation technological innovation pay attention to the new productdevelopment improve quality and brand construction and development of new products improvethe product quality improvement and win the market.. Reducing energy consumption to increaseincreasing earning. Increasing market development ability reduce” pro ducts accountsreceivable” two nbre accelerate the capital turnover. Through the development way not only bythe expansion of production of production but improve the quality of the industrial sector realizerapid growth. 2. The enterprises should strengthen the construction of credit system. Establish the standardof management system establish she transparent reliable statements the accumulation ofenterprise credit system.。

中小企业融资渠道中英文对照外文翻译文献(文档含英文原文和中文翻译)原文：The areas of SME financing channels: an overview 1.IntroductionIn all countries, SMEs are an important source of economic growth and create jobs. In addition, these companies through their dynamism and flexibility, the power of innovation and development.The research method is to start from the literature to highlight the importance of the theme of our research. This paper analyzes the data and statistics based on mainly by the World Bank survey, small and medium-sized private enterprises in Romania by some empirical research. According to the method used, and pointed out the importance of financing of SMEs and enhance the public bodies concerned about, especially the measures taken to improve financial development.2.the literature on SMEs financing channelsA popular academic literature on the financing channels of SMEs, has witnessed a lot of research to solve this problem.Countless research studies have indicated that financing channels is a critical obstacle in the growth and development process, especially in small and medium enterprises.Through Baker Dumont reggae - Ke Lute, Ivan, and Marca Smokin Popovich (2004) research, reflecting the fundamental factors of 10 000 enterprises from 80 countries mainly depend on the financing of enterprises. Therefore, the relationship between the study highlights the corporate finance and its characteristics such as age, size and structure of property rights. From this perspective, the authors found that the small size of the young company, and face greater obstacles when they seek financial resources.The iResearch Dick Mei Leke and Salta (2011) analysis of macroeconomic and institutional factors affecting SME financing loans through the statistical data found. In other similar studies, the authors found a positive correlation between the overall economic development (a measure of per capita income) and financial development (measured by private lending ratio of gross domestic product), on the other hand, the level of SME financing is the opposite. In addition, the authors show that the level of financing for SMEs depends on the legal structure and overall business environment.3.in the process of SME financing in the general obstaclesIn general, access to financial products or financial services or financial inclusion assumes that there is no trade barriers to the use of financial products or services, regardless of whether these barriers or non-related pricing (Dumont reggae - Ke Lute, Baker, and Honorine root 2008:2). Therefore, to improve this means of access means increasing the degree of financial products or financial services at a fair price toeveryone.Enterprise does not use financial products or services can be divided into several categories, their identification is necessary, in order to take the necessary measures to improve their financing channels. Therefore, on the one hand, enterprises obtain financing, the financial products and services, but do not use them because they do not have a viable investment projects. On the other hand, it can distinguish between non-voluntary refuse corporate Although these business needs, but not have access to financial services. The status of independent corporate finance or financial services in some companies do not earn enough money or safeguards required by financing institutions and therefore have higher credit risk. At the same time, when some companies in need of funding, financial and banking institutions involved too costly and can not agree to financing. Finally, in the context of the enterprise refused to appear over-priced financial products or services and financial products or services that meet their requirements.Financing channels for enterprise development and the efficient allocation of funds essential. However, compared with large enterprises, SMEs seeking finance is facing many difficulties, because of several reasons, including: the judicial and legislative structure of the instability and imperfect, it does not support the enterprises in need of financing and funding the relationship between; part of the funding and corporate information is incomplete or even lack of information, which hinders the normal and efficient development of relations between enterprises and providers of finance; especially in the young company, the lack of credit history and guarantees the creditors, and sometimes limits the range of financial products that can be used.The number of surveys, especially the World Bank stressed that the financing is one of the biggest obstacle to good development and growth of the SME. For example, the World Bank in the 2006-2009 survey foundthat 31% of the worldwide study of corporate finance is a major obstacle to the current implementation, and even higher proportion of young company in the 40% of cases up to three years of experience (Chavez, kt Boer and Ireland 2010:1). In addition, a series of global surveys, including the information provided by the World Business Environment Survey show that SME financing transaction costs is the main obstacle to enterprise development.4.SME bank financing difficulties and support measuresIn most countries, especially in countries with bank-oriented financial system, the main source of external financing for SMEs by bank loans. Therefore, this type of loan is crucial to the development of SMEs. However, the survey showed, compared to the SMEs and large enterprises are using the new investment in the small extent of bank financing.As we mentioned, the use of financial products is determined by supply and demand. It is therefore important to understand why the SMEs use bank financing to a small extent only. In this regard, some studies (Banerjee and Duflo: 2004) has shown that the main reason for the supply, because every time when SMEs are able to obtain loans, they use it to increase production. This behavior is more proof of financing is an important factor in the development of enterprises. In addition, in the context of the current global financial crisis, the declining availability of bank loans and limited financing opportunities for SMEs. Therefore, it is the main problem facing small and medium enterprises.October 29, 2010, this survey of SMEs in Romania highlights the main problems faced by SMEs and banks. Therefore, 82% of the interviewed entrepreneurs obtain bank financing is very difficult, mainly because of excessive bureaucracy, unreasonable high demand, high interest rates, rigid bank credit indicators, as well as many types of commission and expenses. In addition, more than 61% of SMEentrepreneurs and managers reporting banks lack of transparency (hidden costs, lack of communication channels, etc.), there is no real consultation (using the standard contract, the bank refused to modify or complete the credit contract, etc.) and banks do not legitimate or misuse of the terms of the contract (for example, perform the unauthorized transaction accounts or bank fraud). Understanding this knowledge to take measures to support and promote SME financing.Improve SME financing is still cause for concern, but also national, European and international facing a challenge. For example, in the EU, through the implementation of the new measures established by the Small Business Administration for Europe to improve the financing channels for SMEs, by reducing the return of the structural funds requirements to promote the access of small and medium enterprises, the establishment of the Credit Ombudsman to promote small and medium-sized enterprises and dialogue between the credit institutions, to avoid the double taxation of the tax legislation, which will hinder the international venture capital plays an important role.In particular, empirical research, emphasizing the impact of the degree of financial development of a country is essential that the level of development of the SME financing. Therefore, a series of measures to support SMEs to obtain financing, to ensure the efficient development of the country's financial, which will ensure greater availability of corporate finance. Specifically, the authorities should take measures commonly used to measure the degree of financial development in the seven pillars, namely, the institutional environment, business environment, financial stability, banking and financial services, non-bank financial services, financial markets and access to finance.5 .ConclusionEffective financing for SMEs to create new business is of great significance, and existing growth and development of enterprises, whilepromoting the country's economic and social development. In addition, in the case of the economic crisis, SMEs contribute to restoring the national economy, so it is particularly important to support SME financing. However, most of the survey report stressed, always the financing channels of SMEs is one of the most important factor to affect its operation and development.SMEs trying to get the necessary financial resources to face difficulties related to the entrepreneurs and the economic environment of each country, as well as existing legal and institutional structure. To alleviate these difficulties, the measures taken by public authorities should focus on improving the financial development and to ensure that the corporate finance and economic growth, greater effectiveness.In various countries, including Romania, the decline on the availability of SME financing, or even the lack of statistical data, we believe that policy makers need to focus on and monitor a series of important indicators, depending on the size of the SMEs, experience and industry events share of its loans, which will benefit the public authorities, creditors and investors.原文来自罗马·安吉拉中小企业的融资渠道的领域:概述（奥拉迪亚大学：经济科学，2011年第一卷第一期，431-437）摘要通过中小企业在创造附加值和新的就业岗位中的贡献,使它在国家的经济和社会发展中拥有一个显著的角色。

中小企业融资英文文献An Analysis on Credit Guarantee System of Small and Medium-sized Enterprises in China Abstract:At present(there are still manyconstraints in the further development of SME(small and medium—sized enterprises in China(And especially the financing development of SME has become a bottle neck，which was caused by the unsound credit guarantee system for SME(Basedon China’s SME guarantee system and its problems，the thesis puts forward proposals to perfect guarantee system for China’s SME with normal analysis(In order to make guarantee system play its due role(itis necessary to establish different modes of credit guaranteeinstitutions in accordance with the actual situation(to found SME credit guarantee funds and its supplementary system(to adjust the operation mode of guarantee funds and to improve legal protection of the credit guarantee system(对中国中小企业信用担保体系的分析摘要:目前，中国中小企业的进一步发展仍然受到很多约束，尤其是中小企业融资问题已经成为制约的瓶颈。

文献出处：Guariglia A. The Research of Small and Medium-sized Enterprise Financing Lease [J]. Entrepreneurship Theory and Practice, 2015，12（05）：41-51. 原文The Research of Small and Medium-sized Enterprise Financing LeaseGuariglia A.AbstractThis paper discusses the lease financing business accounting, development ofsmall and medium sized enterprises, and analyses the advantage in the financing lease.Finally, introduces small and medium sized enterprises in perfect financing lease ofcountermeasures from legal environment, taxation system, and guarantee system inorder to implement financing measures provided to small and medium -sizedenterprises, and solve financing difficulties of emergencies, thus improve to economicgrowth.Keywords: Small and Medium -sized Enterprises Financing lease；1 IntroductionFinance lease is finance transfers the ownership of the nature and characteristicsof equipment leasing business. Required by the lesser according to the lessee to buyequipment such as performance, specifications, models, and the lease to the lessee.The lesser to lease equipment, on the basis of the purchase price calculated accordingto the time length of the lessee occupy the lesser money rent, the lessee in accordancewith the agreed to pay the rent for each contract. Ownership of the contract equipmentbelongs to the lesser; the lessee has only to the right to use the equipment. After thetermination of the contract to pay the rent, the lessee has the right to according to theresidual value to buy equipment, to have the ownership of the equipment, or return theequipment to the lesser.2 The lessee financing lease accounting treatment2.1 The lease beginning date processing(1) Type of lease. (2) Calculating the lease beginning date of the minimum leasepayments, long-term accounts payable of the minimum lease payments as the entryvalue. (3) To calculate the lease beginning date the present value of the minimumlease payments, the lessee shall transfer the fair value of the leased asset on the leasebeginning date and the present value of minimum lease payment of the two lower as rent entry value of the assets. The lessee when calculating the present value of minimum lease payment, the determination of the discount rate: if the lesson’s rate implicit in the lease, with the lesson’s rate implicit in the lease as the discount rate; Otherwise, the interest rate discount rate is stipulated in the lease contract, to the bank loan interest rates for the same period as the discount rate. Lease containing rate is on the lease beginning date, makes the present value of the minimum lease receipts and the unguaranteed residual value of the sum of present value equal to the fair value of the leased asset and the lesser discount rate of the sum of the initial direct costs. (4) The initial direct costs included in the value of the asset. Initial direct costs refer to the lease negotiations and sign the leasing agreement which is in the process of happen, can be directly attributable to the cost of the leasing items. There are usually stamp duty, commissions, fees, travel expenses. (5) Calculate the unrecognized financing charges. Unrecognized financing charges = minimum lease payments - fair value of the leased asset (the present value of the minimum lease payments).Unrecognized financing charges.6. Prepare the lease beginning date accounting entries.2.2 The unrecognized financing chargesUnder a finance lease, the lessee to the lesser to pay the rent for each includes the principal and interest of the two parts. When the lessee pays the rent, on the one hand, reduce long-term payables; On the other hand, at the same time the unrecognized financing charges according to certain method to confirm the current financing costs. In accordance with the standards on the lease, the lessee shall adopt the effective interest rate method. In the case of adopting the actual interest rate method, based on the lease beginning date, the entry value of the leased asset is different, the choice of financing cost allocation rate is also different, the contribution rate of unrecognized financing charges to determine the specific divided into the following several ways.(1) the present value of the minimum lease payments as the entry value of the leased asset and the lease with interest rates as the contribution rate of unrecognized financing charges.(2) the present value of the minimum lease payments as the entry value of the leased asset, the provisions of the contract interest rate as the contribution rate ofunrecognized financing charges.(3) the present value of the minimum lease payments as the entry value of the leased asset, the bank loan interest rates for the same period as the contribution rate of unrecognized financing charges.(4) based on fair value of the leased asset costs, contribution rate shall be calculated again, the contribution rate is that the present value of minimum lease payments is equal to the discount rate of the fair value of the leased asset.2.3 Lease assets depreciation provisionsThe lessee to the financing of the rented fixed assets depreciation. Determine the leased asset depreciation period shall consider the provisions of the lease contract is concerned, if it can be reasonably determining the expiry of the lease the lessee will obtain the ownership of the leased asset, the life of the leased asset shall be on the lease beginning date as the depreciation period; If unable to reasonably determine the expiration of the lease term the lessee will obtain the ownership of the leased asset and should be in the lease term and the life of the leased asset as the depreciation period is shorter.2.4 The performance cost of processingThe performance cost is refers to the leased asset during the lease term for the payment of royalties, such as technical advice and services, personnel training, maintenance, insurance, etc. The lessee of the performance cost should be included in the current profits and losses (management cost, manufacturing cost, cost of sales and other subjects).2.5 With the rentOr have the rent is refers to the amount of uncertainty, based on factors other than the length of time (such as sales, usage) rent. Or have the rent in the actual occurs into the profits and losses of the current period.2.6 Processing when the lease term expiresThe processing of the leased asset when the lease term expires, the lessee to have three conditions: return, preferential renewals, retention.3 The advantages of financing lease analysis Small and medium-sized enterprises3.1 Leasing company is able to control the risk of small and medium-sized enterprisefinancing, and is willing to provide loans.Leasing company will be confronted with various risks in doing business, roughly the kinds of product market risk, financial risk, trade risk, economic risk, technology risk, environment pollution risks, force majored, and so on. When leasing companies with weak economic strength, low credit level of small and medium enterprises to carry out the financing lease, the risk will increase, especially small and medium-sized enterprises is the risk of the lessee cannot pay the rent on time every rental companies must focus on when doing business. Leasing companies with the characteristics of the financing lease business, can control for small and medium-sized enterprise financing risk, makes it a acceptable or tolerable risk. Leasing company risk control methods mainly include the following:(1) The ownership of the leased equipment belongs to the leasing company. An obvious feature of financing lease is Lease Company has the ownership of the leased equipment, and the lessee only has leasing the right to use the equipment. It is because the separation of ownership and use right leasing equipment makes the leasing company when tenant defaults don't pay the rent on time, with relative to bank loans and other financing more leeway. The lessee cannot accord the terms of the lease contract, pay the rent on time phenomenon mainly can be divided into the following kinds: temporarily liquidity difficulties; the lessee has enough cash flow, but deliberately rent arrears; the lessee insolvency, filed for bankruptcy. To the lessee for the first reason appears the phenomenon of the rent in arrears, leasing companies in the financial condition of a detailed study of the lessee, determine the true, can adjust the rent payment scheme with tenant, make it accord with the characteristics of the lessee's cash flow. This can help the lessee through the current situation, also is advantageous to the leasing company of the lessee and continue our cooperation. If after investigation found that the lessee is intentionally rent arrears, leasing company can communicate with tenant, told if continue to fulfill its obligation to pay the rent will face the consequences. In the case of the lessee refuses to correct, leasing company can through legal means, to exercise their rights, retrieve the lease item, and punish the rent in arrears, the point of control the losses to a minimum. Visible, simpleand flexible, low requirements for credit, financing lease affordable at the same time in the financing lease can effectively predict before, in order to avoid risks, so it is in the small and medium-sized enterprise financing can not be neglected, a kind of financing way.(2) To leasing company can control the money. Finance lease is a kind of financing and it as one of the new financing way, it is different from the general bank loans, rental company does not directly provide funds to the lessee, but according to the requirements of the lessee, the lessee the selected equipment manufacturers designated equipment purchase, to rent to the lessee to use it and reach the purpose of financing. Leasing companies to provide equipment instead of the direct funding financing can be very good to prevent enterprise change of the use of funds, the limited funds for the enterprise need productive USES, expand the production capacity of enterprises, to improve enterprise's ability to pay the rent, but also reduce the risk of the leasing company.3.2 Financing lease low cost requirementsAlthough the interest of financing lease to 2 ~ 3% higher than the same period of bank interest, but long-term bank loans often have additional constraints, such as equal pay, compensating balance on a regular basis to make small and medium-sized enterprise's actual loan interest rate increase or cannot get one hundred percent of the financing, the financing lease can provide even rather than equipment price (including freight, insurance premium, etc.) was raised, and the lessee generally enjoy the tax benefits brought by the lease. By way of financing lease, the enterprise can in the case of a small amount of money, get the right to use the equipment, saving money in early. Tenant companies at the same time can also be originally out turnover must be used for equipment use, portable, improve the utilization efficiency of the capital. Therefore, taken together, the cost of the small and medium-sized enterprises using financing lease is not higher than bank loans.3.3 Equipment selection autonomy is strongIn the process of financing lease, the lessee has the right to choose its own equipment and the supplier, do not rely on the lesson’s judgment and decision, thelesser shall not interfere in the lessee's choice of equipment and the supplier. Besides there are special provisions of the state of equipment, the lesser may recommend to the lessee and equipment manufacturer, but did not say.3.4 The rent paymentFinancial leasing is more flexible in terms of rent charge. Rent shall be according to the production nature of the lessee, the condition of capital and the sales season characteristics, in terms of reimbursement amount of time and combined with enterprise actual operating conditions, and not pay the rent in regular, fixed form. The lessee pays the rent can take the form of more, such as the payment time intervals, can be divided into annual pay, can pay half a year, quarter and monthly payment; According to whether the rent at the time of waiting for the forehead, can be divided into equal pay and equal pay. In practice, the lessee and the lesser agreed to rent payment is commonly uniform annuity to pay later.译文中小企业融资租赁研究Guariglia A.摘要本文具体探讨了融资租赁业务的会计处理方式、发展思路，分析了中小企业开展融资租赁的优势。

NEW IDEAS FROM THE WORLD BANK OF SMALL AND MEDIUM ENTERPRISES World Bank Group SME Department V ol. 2, No. 1 March 2001A thriving SME sector is crucial to spurring growth and reducing poverty in developing and transition economies. But financial institutions often avoid SMEs, sensing—understandably—that the transaction costs of financing them will be excessively high. What SMEs need is not to be left without access to capital, but approached on a new model that combines early-stage equity investment and performance-enhancing technical assistance, writes Bert van der Vaart, CEO of Small Enterprise Assistance Funds (SEAF). This US- and Dutch-based NGO manages a network of 14 commercially driven investment funds worldwide with total assets of $140 million, and has developed a unique “equity plus assistance” approach to SME investing.Small and medium sized enterprises (SMEs) Sare widely credited with generating the highest rates of revenue and employment growth in virtually all economies. In transition and developing countries open to foreign direct investment, they also tend to pay disproportionately more in taxes and social security contributions than either their larger and smaller counterparts. Larger enterprises, especially multinationals, often find a way to reduce their tax obligations through transfer pricing, royalty payments, and negotiated tax holidays. Microenterprises, on the other hand, often fall in the informal sector, neither paying taxes nor making social security contributions. Yet if SMEs constitute a critical dimension of growth and development and are often well positioned to achieve high revenue and profit growth, why have private and public financing institutions alike tended to avoid investing in them?The reasons are multiple and, for the most part, understandable.For private investors, the amount of work required to invest relatively small sums into several SMEs seems unattractive compared to the work needed to support fewer investments in larger companies. Moreover, investing in local SMEs also often involves working with entrepreneurs who are less familiar with conventional financing relationships, business practices, and the English language than principals of larger firms. Accordingly, most private capital would much prefer to invest in a few large-asset There are broader issues to be considered as well, including the lack of transparency in local legal systems and governments that make investing in these countries difficult at best. enterprises in fields such as pharmaceuticals, telecommunications or privatized industry rather than in smaller companies with relatively few assets, low capitalization and a perceived greater vulnerability to market conditions. Public development institutions can also encounter high administrative costs in making SME investments. These can be coupled with perceptions that local SMEentrepreneurs may not be trustworthy, and that working with them might bring fewer visibly “developmental” benefits than targeting more poverty-focused fields such as microfinance.Local commercial banks too are often biased in favor of large corporate borrowers with considerable assets. This has meant that even the lines of credit local banks receive from development institutions for on-lending to SMEs are often under-utilized.SME entrepreneurs’ lack of experience in accounting and other areas of financial documentation makes it difficult for banks or other potential sources to assess their creditworthiness and cash flows, again hindering the provision of financing. Combined, these factors have largely left what should be the most dynamic sector of the economy in developing countries lacking the capital it needs to realize its potential.SEAF believes that the investment levels it takes,coupled with its focused efforts on increase value after investments, allows it to invest at relatively attractive multiples. This offers an array of potential exit possibilities. By contrast, many conventional emerging market private equity investors have had disappointing records in achieving exits over the last four years. SEAF’s approach to early-stage investing in SMEs thus may one day be seen as one of the more appropriate means of investing in developing countries. In the meantime, SEAF is achieving its developmental objectives by rapidly increasing the revenues, productivity, and employment growth of its investee SMEs.世界银行对中小企业的援助计划中小企业的蓬勃发展对促进经济增长，减少发展中国家的贫穷和经济转型具有重要意义。

小微企业融资外文文献翻译小微企业融资外文文献翻译(文档含中英文对照即英文原文和中文翻译)原文：Micro Enterprise Finance in Uganda: Path Dependence and Other and Determinants of Financing DecisionsDr. Winifred Tarinyeba- KiryabwireAbstractAccess to finance literature in developing countries focuses onaccess to credit constraints of small and medium enterprises (SMEs) micro enterprises because they are considered the drivers of economic growth. However, in low income countries, micro enterprises play a much more significant role than SMEs because of their contribution to non-agricultural self-employment. The predominant use of informal credit rather than formal credit shows that the manner in which micro enterprises are formed and conduct their businesses favors the former over the latter. In addition, other factors such as lengthy credit application procedures, negative perceptions about credit application processes make informal credit more attractive. On the other hand specific factors such as business diversification, the need to acquire business inputs or assets than cannot be obtained using supplier credit are associated with a tendency to use formal credit.IntroductionIt well established that in markets where access to credit is constrained, it is the smaller businesses that have the most difficulty accessing credit. Various policy interventions have been made to improve access to credit including reforming the information and contractual frameworks, macro-economic performance, competitiveness in the financial system, and regulatory frameworks that enablefinancial institutions to develop products for SMEs such as leasing and factoring. Over the past ten years, policy makers in developing and low income countries have focused on microfinance as an intervention to bridge the access to credit gap and improve access to credit for those than cannot obtain credit from mainstream financial institutions such as commercial banks. However, despite, the use of what are often termed as “innovative lending” methods that are designed to ease access to credit, such as use of group lending and other collateral substitutes, micro enterprises continue to rely heavily on informal finance as opposed to formal credit. While other studies have focused broadly on factors that inhibit access to credit, this article seeks to throw some light on specific characteristics of micro enterprises that make them more inclined to use informal credit, as well as specific factors that are more associated with use of formal credit. The former are what I term as path dependence factors.The majority of micro enterprises operate as informally established sole proprietorships. This finding is consistent with the literature on micro enterprises, particularly the fact that they operate in the informal sector. However, nearly all of the enterprises had some form of trading license issued by the local government of the area in whichthey operate. The license identifies the owner of the business and its location, and is renewable every financial year. Most respondents did not understand the concept of business incorporation and thought that having a trading license meant that they were incorporated. Several factors can be attributed to the manner in which micro enterprises are established. First, proprietors generally understand neither the concept of incorporation nor the financial and legal implications of establishing a business as a legal entity separate from its owner. Second, the majority of micro enterprises start as spontaneous business or economic opportunities, rather than as well-thought out business ventures, particularly businesses that operate by the road side, or in other strategic areas, such as telephone booths that operate along busy streets. The owners are primarily concerned with the economic opportunity that the business presents rather than with the formalities of establishing the business. Third, rule of law issues also explain the manner in which businesses generally are established and financed. Although a mechanism exists for incorporating businesses in Uganda, the process and the legal and regulatory burdens, associated with formalizing a business, create costs that, in most cases, far outweigh the benefits or even the economic opportunity created by the business.Commenting on the role of law in determining the efficiency of the economic activities it regulates, Hernando De Soto argues that if laws impede or disrupt economic efficiency, they not only impose unnecessary costs of accessing and remaining in the formal system, but costs of operating informally as well. The former include the time and cost of registering a business, taxes and complying with bureaucratic procedures. On the other hand, the costs of informality include costs of avoiding penalties, evading taxes and labor laws and costs that result from absence of good laws such as not inadequate property rights protection, inability to use the contract system, and inefficiencies associated with extra contractual law.Businesses in Uganda are registered by the Registrar of Companies under the Company’s Act. The office of the Registrar of Companies is located in the capital city of Kampala and this imposes a burden on businesses that operate in other parts of the country that would wish to be registered. However, remoteness of the business registration office was not the primary inhibitor because the tendency not to register was as pronounced in businesses close to the registration office, as it was in those that were remotely placed. In addition, the following fees are required to incorporate a company: a name search andreservation fee of Ugshs. 25,000 ($12.50), stamp duty of 0.5% of the value of the share capital, memorandum and articles of association registration fee of Ugshs. 35,000 ($17.5), and a registration fee ranging from Ugshs. 50,000 to 4,000,000 ($25 to 2000).Legal systems characterized by low regulatory burden, shareholder and creditor rights protection, and efficient bankruptcy processes are associated with incorporated businesses and increased access to finance. On the other hand, inadequate legal protection is associated with limited business incorporation, low joint entrepreneurial activity, and higher financing obstacles. These impediments are what De Soto refers to as the mystery of legal failure. He argues that although nearly every developing and former communist nation has a formal property system, most citizens cannot gain access to it and their only alternative is to retreat with their assets into the extra legal sector where they can live and do business.译文乌干达小微企业融资路径依赖和融资的决定性因素Dr. Winifred Tarinyeba- Kiryabwire摘要通过查阅发展中国家的金融文献，我们往往可以发现由于中小企业是推动发展中国家经济增长的主要动力源，其金融问趣则主要侧重于中小企业的融资受限方面。

外文翻译F inancing Difficulties and Structural文献标题Characteristics of SMEs in China作者Yanzhong Wang发表日期2004出版社或China & World Economy论文页码Vol. 12 No. 2, 2004期刊名称英文原文China’s reform and opening-up policy has created a good environment for the development of small- and medium-sized enterprises (SMEs), especially the burgeoning SMEs in the private sector. In the meantime, SMEs have been playing an important role in China’s economic reform and development and, to some extent, have become a growth engine in theChinese economy. However, SMEs are still facing many financial difficulties due to various reasons, such as lagging in the banking system, an inadequate financial structure, lack of a guarantee system, etc. This paper will analyze the structural roots of SMEs financing difficulties and put forward possible measures to mitigate such financing obstaclesSince China’s reform and opening up, the market-oriented reform of the country’seconomic system has gradually engendered labor and capital markets, which have promoted an organic combination of rich labor resources and increasingly expandedcapital resources. The development of SMEs, especially the sharp rise in non-stateownedand non-public-owned enterprises, have provided a vast space and permanent vehicle for this type of combination. Although the overall size of the state-owned economy is still increasing in terms of number of enterprises and developmentalpotential, non-state-owned SMEs have become a main part of the Chinese economy and played an increasingly important role in the national economy and social development.With the rapid growth of the Chinese economy, many kinds of SMEs have been established and gradually developed. In 1980, the number of industrial enterprises at the level of collective township and village enterprises and above (excluding village and family enterprises), was about 377,300. Among them were 1,400 large enterprises, 3,400 medium enterprises and 372, 500 small enterprises, about 0.37, 0.90 and 98.73 percent of all firms respectively ( National Bureau of Statistics, 1981, p. 204). In the same year, China had 1.81 million commercial enterprises (including private businesses), more than 99 percent of which were SMEs. The number of individually owned enterprises was 686,000. The Chinese economy experienced rapid growth in the 1980s, and there was a tremendous boost in the number of SMEs. In 1990, the total number of industrial enterprises reached 7,957,800. The proportions of large, medium and small enterprises were 0.95, 2.27 and 96.78 percent respectively.1 The significant increase in the number of SMEs reflects the objective reality of its fast development at the time. Apart from an increase in industrial enterprises, the number of construction, commercial, food-and-beverage and service enterprises all increased by over 300 percent over 1980 (NBS, 1991, p. 16-17). In the 1990s, the Chinese economy maintained a trend of steady and rapid growth and the overall scale of the economy continued to expand. According to the new standards on the scale of industrial enterprises carried out in 1998, there were 7,864 large enterprises, 14, 371 medium enterprises and 139,798 small enterprises – about 4.85, 8.87 and 86.28 percent of all firms respectively (NBS, 2000, p. 412-413). Compared to figures from 1980 and 1990, while there was an increasein the proportion of large and medium-sized enterprises, the proportion of small enterprises decreased by 10 percent. There were several reasons for this: (1) Large and medium-sized enterprises increased their scale after the structural adjustment, merge and acquisition; (2) With the improvement of the enterprise differentiation standard, a great number of SMEs could not be brought into the statistical category due to their small scale. The number of SMEs decreased (the statistics for the number of firms in 1999 was 38.9percent of the 1990 figure) and, naturally, the proportion of large and medium-sized enterprises increased; (3) Since the mid-1990s, China has switched from a shortage economy to a buyer’s market. The expansion of the opening-up policy and the Asian economic crisis exposed Chinese enterprises to more ardent international competition. Due to the system reforms, the number of state-owned SMEs was cut down largely. Many non-state-owned SMEs also left the market for many reasons, including the pressures of environmental protection, capital difficulties, increased tax burden and fierce market competition. On the whole, it is already difficult to maintain the previous growth momentum in the number of SMEs as seen in the 1980s and 1990s. Since the late 1970s, the reform and opening-up policy and objective terms of the phase of economic take-off have provided a good external environment for the development of SMEs. Therefore, the increasing number and variety of emerging SMEs not only impelled the development of local and national economies, but also became an important indicator for a boost in the Chinese economy. Today, SMEs are getting stronger and continue to contribute to the development ofChinese society and economy. They exert the same function as SMEs in other countries, which is mainly expressed by promoting employment, technological innovation, training of entrepreneurs, developing international economic relationships, accelerating market competition, maintaining economic vitality, and so on. Comparatively speaking, the special nature of Chinese SMEs manifests their specific influence on the transition of China’s economic system and social structure. For example, the development of non-public-owned SMEs not only changes the enterprise ownership structure, but also lays an important foundation in the process of developing China’s market economy. At present, the numberof non-public-owned Chinese enterprises far exceeds the number of state-owned firms. Excluding over 20 million individually-owned enterprises, the proportion of formally registered non-state-owned legal entities grew from 26.1 to 59.5 percent between 1996 and 2001 (Table2). The proportion of non-state-owned enterprises also far surpassed state-owned ones. According to the statistics on industrial value-added output, in the first three months of 2003, the state-owned and collective economy fell to 30 percent, while the non-publicowned economy jumped to 70 percent.Since China’s reform and opening up, SMEs have gradually enjoyed a healthy external environment for development. By reforming the system of a planned economy, the nation relaxed its limitations on the development of SMEs so that urban collective enterprises, township and village enterprises, individual businesses, private enterprises, foreign-funded enterprises and joint ventures could rapidly develop. Regarding the various forms of SME ownership, different development policies were adopted. For state-owned SMEs, from its efforts to “decentralize authority to release benefits” (fangquan rangli) in 1978 to “grasp the large and let go of the small” (zhuada fangxiao) adopted at the Third Plenary Session of the 14th Central Comm ittee in 1995, the government’s policy has focused on reforming the old system which did not adapt to the demand of a market economy. In the mid-1990s, China adopted the policy of “deregulation to render agile” (fangkai gaohuo) and privatization policy for small-sized state-owned enterprises. Many state-owned and collective SMEs reinforced their competitive activities through reform and “privatization”, which transformed the system of property rights and management. As for non-state-owned SMEs, China mainly adopted policies of relaxing policy restrictions, granting political acceptance and financial support, and gradually established a market environment of fair competition andSince the mid-1990s, developing SMEs has been an important strategy in China.The Asian financial crisis of 1997 made the Chinese government and academic circles completely rethink the shortcomings of the simplistic strategy that relied on large enterprises. The government and its institutions came torecognize the need to stress the development of SMEs. Later, a unified administrative framework for all types of SMEs began to take shape. Because of the successive governmental institution reform in 1998, some government departments of various industries were incorporated intothe State Economic and Trade Commission.2 At the same time, a SME department was established in the State Economic and Trade Commission, the highest-level comprehensive management department in charge of reform and development policy of SMEs. Since the trend for the township industry to transform into an urban one is growing, the management of the village and township industry will be gradually consolidated with urban management. Government departments at different levels gradually adopted some accommodating policies to begin building a specialized support service system. From 1999, the Ministry of Finance and other departments started to actively establish a SMEs loan guarantee system. By 2001, they published some laws and regulations, such as the Provisional Regulation of SME Credit Guarantee System and Management Methods of Credit Guarantees for SMEs.3 By the end of 2000, 30 provinces, municipalities and autonomous regions in China had opened pilot sites forthe SME credit-guarantee system, established more than 200 credit-guarantee institutions, raised a guarantee fund of 10 billion yuan, and put forth an important effort to improve the credit environment for SME development. The Ministry of Science and Technology provides 10 billion yuan per year to build venture capital funds for hitech enterprises. Shanghai established the Shanghai SMEs Service Center, which released 13.9 million yuan in credit to 11 SMEs from June to September 1998 (Yao Jun, 1999). The Shanghai Branch of the China Industrial and Commercial Bank set up SME credit departments and took 10 measures to support SMEs. By April 1999, it had shelledout about 300 million yuan in credit to SMEs.4Throughout the reform process and especially in recent years, China has begun placing an emphasis on the issue of supporting SME development. But there are still many problems in the relevant policies. First of all, China lacks a long-term, systematic, unified and relatively independent SME development strategy and policy system. Second, the SME management system and relevant policies are inconsistent, and basic management is weak. Furthermore, since the design of the social service system is severely behind the times, the burden of taxation and quotas is heavy. Finally, without sufficient financial support for SMEs, difficulties in obtaining loans and raising funds will block SME development.外文翻译论文标题中国中小企业融资难和融资结构特点作者王延忠发表时间2004年出版社或中国与世界经济论文页码12期201-218页期刊名称中文翻译中国的改革开放政策为中小型企业（SMEs）创造了良好的发展环境，特别是中小企业的蓬勃发展私营部门。

SME financing in ChinaUniversité Paris X-NanterreMaison Max Weber (bâtiments K et G)200, Avenue de la République92001 NANTERRE CEDEXDocument de Travail Working Paper2007-29Chen Xiang LIUE c o n om i X http://economix.u-paris10.fr/SME Financing in ChinaLIU Chen XiangUniversité Paris X-NanterreEconomiX (CNRS-UMR 7166)Bâtiment K-115200, Avenue de la République92001 Nanterre CedexTél : 01.40.97.59.10Fax : 01.40.97.59.10Courriel : liu_chenxiang@yahoo.frSME Financing in ChinaLIU Chen XiangAbstractSMEs have a great contribution in China’s economic expansion. However, the financing predicament currently faced by SMEs constitutes a great bottleneck for their development. Banks are reluctant to lend to them, mainly due to the lack of collateral and their poor capability in pricing risk. This is the reason why credit guarantee institutions play a key role in SME financing and the perfection of the credit guarantee system is important for promoting their access to credit. In addition, the lifting of the ceiling on lending rates as well as other steps taken by banking authorities will encourage bank lending to SMEs. Finally, informal finance has a significant part in SME financing.RésuméLes PME ont une grande contribution à la croissance chinoise. Pourtant, leur difficulté de financement devient un grand obstacle dans leur développement. Les banques ne veulent pas leur prêter, principalement à cause de manque de collatéraux et la faible compétence des banques pour évaluer le risque de crédit. C’est la raison pour laquelle les organismes de garantie jouent un rôle indispensable dans le financement de PME et le perfectionnement du système de garantie est important pour augmenter leur accès aux crédits. En plus, l’enlèvement du plafond de taux d’intérêt de crédits ainsi que les autres mesures prises par les autorités bancaires vont encourager les prêts bancaires aux PME. Enfin, la finance informelle a une part significative dans le financement de PME.Key Words: SME financing, credit guarantee, informal financeJEL Classification: E26, E51, G21, O531. IntroductionThe scope of private ownership has become substantial, producing well over half of GDP and an overwhelming share of exports-imports. Private companies generate most new jobs and are improving the productivity and profitability of the whole economy. The continued re-orientation of the economy towards the private sector brings considerable gains to real incomes and macro-economic activity. It should be noted that all companies which are controlled neither by state nor by collective shareholders are considered as private companies; 98% of enterprises in non-public sector are SMEs (small and medium sized enterprises), and 98% of SMEs are in non-public sector.The changes in government polices explain importantly the emergence of a powerful private sector in the economy. In 2005, regulations that prevented privately-owned companies entering a number of sectors of the economy, such as infrastructure, public utilities and financial services were abolished. However, SMEs have always limited access to credits, which hinders heavily their businesses’ expansion and thus their healthy development. Why banks are reluctant to lend to them and how they have fallen into financing difficulties? How to resolve their financing problems and who can serve as their main supporters? This paper tries to respond to these questions and to draw the best SME financing service system.The paper begins by evaluating the position of SMEs in the real economy as a whole and highlighting issues facing SME financing. The following section discusses formal finance’s support for SMEs, emphasizing the role of credit guarantee institutions. Ultimately, the paper presents informal finance’s development and outlines its influences on SME financing.2. The private sector—a major driving force in economic expansionChina’s private sector has become its main driver of economic growth. In 2005, there were more than 40 million SMEs and sole industrial & commercial proprietorships (getihu enterprises), accounting for 99.6% of the total number of enterprises. They were responsible for as much as 59% of GDP. They accounted for 60% of sales value and represented 68.65% of imports & exports. They paid 48.2% of taxes, and occupied more than 75% of employment in urban areas. The regions with which SME cooperate have extended from Hong Kong & Macao to some developed countries, such as United States and Italy.The growth in private output has been the result of the higher productivity of most companies in this sector. The sharper incentives facing the private sector companies have resulted in them using less capital and labour to produce output than state companies. Overall, the aggregate productivity of private companies in the industrial sector is estimated to be almost twice that of enterprises controlled directly by the state. The profitability of private companies has also risen considerably, and the rate of return on physical assets was double that of state controlled companies in certain provinces in 2005. Such a high level of competitiveness has resulted in the private sector accounting for more than two-thirds of all exports in 2005. While the bulk of these exports are made by foreign-controlled companies, the domestically-owned private sector is increasing its exports, as more small and medium-sized enterprises are granted export licences. (OECD, 2005).The private sector plays a key role in a largely market-oriented economy owing to the changes in government polices. Government authorities have recognized the importance of the private sector for economic growth and job creation, and have moved to reduce a number of barriers that limit its expansion and to promote its equal treatment with publicly-owned sectors. On February 2005, the State Council issued “Guidelines on Encouraging and Supporting the Development of the Non Public Sector including Individual and Private Enterprises” that include 36 articles for improving the operating environment for private business. The new guidelines give much-improved market access to private companies in many industries that were previously restricted, including those that are dominated by state monopolies and heavily regulated sectors such as public utilities, financial services, social services and national defence. The directives also mandate equal treatment of private and public business, calling for rescinding of rules that discriminate against private companies and direct ministries and local governments to carry out implementation of the new constitutional amendment guaranteeing private property rights. In terms of access to financing, the new guidelines direct financial regulators to expand access to bank, equity and bond financing, through pro-active treatment of private companies under the interest rate liberalisation, and through impartial treatment of private companies in capital market access. A subsequent survey by the All-China Federation of Industry and Commerce showed that entrepreneurs cited the new market entry and financing access articles to be the most important.3. The difficulty of SMEs to access to credit3.1 Structure of SME financing and their financing difficultiesAccording to the survey conducted by State Administration for Industry and Commerce (SAIC) in 2002, the domestic private companies, including the very small companies, have low ratios of liabilities to equity, supporting the view that they had limited access to credit.Indeed over 40% of such companies in the sample had no debt, and financed their activities from internal funds, while the remaining nearly 60% borrowed from banks or informal market (Table 1). The very smallest private industrial companies and private service sector companies rely extensively on informal credit. Bank credit, on the other hand, seems to be more accessible for larger companies. The survey also indicates that over 90% of the private companies had difficulty in obtaining bank credit. Over half of the respondents named their lack of collateral as a major barrier to bank borrowing. Ownership discrimination was cited by one-fifth of respondents followed by insufficient amount of bank loans and too short-term lending as major problems with bank financing. Much fewer firms chose too high interest rates or stringent requirements for credit rating as top reasons for not bank borrowing. While banks tend to lend short-term, the informal markets provide long-term financing. The informal sector also accepts receivables as collateral, which may help explain why some larger firms rely exclusively on the informal market for external finance.China International Capital Corporation Limited’s recent research (2006) indicates that equity and retained earning represent respectively 30% and 26% of capital resources in SMEs. Among external financing channels, equity market’s entry threshold is high, venture capital investment system isn’t complete, corporate bonds’ issuance entry is difficult, so SMEs can’t raise capital through capital market effectively. For instance, listing in the stock market in Shenzhen or Shanghai is a privilege of a handful of well-established, large and profitable private companies. Although the establishment of the second board on the Shenzhen market for high-tech SMEs may ease this need somewhat for such companies, for non-high-tech companies financing still remains a major problem. Moreover, bond financing seems to be even less accessible for private companies due to stringent criteria including industrial policy guidelines.Table 1 – Use of credit by Domestic Private Sector CompaniesSize category (Sales volume, million yuan)0-1 1-3 3-10 10-20 20-50 50+ all Access to borrowing Per cent of firmsPer cent with no credit 54.2 43.4 39.5 36.1 28.6 42.4 41.1Per cent with credit 45.8 56.6 60.5 63.9 71.4 57.6 58.9 Per cent of firm with bank finance only 13.8 23.3 28.3 34.8 43.7 36.1 29.3Per cent with informal finance only 20.2 18.3 15.0 11.6 9.6 7.6 14.0Per cent with bank and informal 11.8 15.0 17.2 17.5 18.0 13.9 15.6 Firms with any borrowing1Per cent of equityManufacturing 51.8 32.3 36.5 39.9 36.5 28.9 32.5Services 43.6 40.9 49.9 30.3 63.8 31.1 39.9 All 47.6 36.9 38.8 36.6 43.8 29.5 34.7Per cent of total borrowingShare of informal borrowing in totalborrowingManufacturing 23.3 24.3 19.5 26.4 9.4 3.9 17.6Services 44.2 35.1 8.7 12.1 11.6 8.7 21.4All 35.7 28.2 15.6 20.9 10.3 6.3 10.9Pre tax rate of return on equity 6.1 10.6 11.5 15.1 16.6 15.5 14.811.8 19.8 24.8 29.9 32.0 30.6 29.0 Investment relative to (previousyear) equity plus debt minusinvestment14.5 18.7 25.3 12.3 12.6 16.7 100.0 Proportion of firms in each sizegroupSource: the Chinese University of Hong Kong, OECD Economic Surveys: China (2005) With respect to banks, although lending by State Owned Commercial Banks (SOCB) and other banks to non-state enterprises has been growing rapidly, private enterprises still seem to have less access to credit than State-owned enterprises (SOE). Small and medium sized businesses, which account for more than half of GDP, receive only 16% of total bank loans. Only 30% of credits demanded by SMEs with a good quality have been satisfied. (Economic Daily, 14/06/2006) Another example. According to Shanghai Branch of CBRC (China Banking Regulatory Commission), up to the end of June 2005, 71 915 small enterprises had obtained credits, which accounted for 28.2% in the total number of small enterprises in Shanghai. There are at least 70%of small enterprises which have never demanded credit, in a conservative estimation. Among1 The enterprises, which have less than 1 million yuans of sales volume, have the highest ratio of borrowing to equity, because they have little equity instead of much borrowing.those which had demanded credit, only 10% of small enterprises failed due to their poor management, 45% were refused because they hadn’t acceptable properties as a pledge for banks.3.2 Why banks are reluctant to grant credit?Credit demanded by SMEs has the following characteristics: small amount, urgent and frequent demands, in short term. The control cost of such credit is much higher than the one of credit to big enterprises. The smaller scale of SME loans makes banks proportionately more expensive to monitor. Big banks prefer to do business with big enterprises. Yet there are small & medium banks which have much less capital and which grant credits to SMEs with a good quality. These banks are less competitive but know very well SMEs in their regions.Likewise, poor management, complex related transactions, non transparent accounting and weak anti-risk capability have aggravated their difficulties to get credits from banks. Banks don’t want to lend to them owing to information asymmetry and high costs of transaction and control.Banks’ efforts to avoid incurring new non-performing loans reduce the access of SMEs, state owned and non-state, to bank credit, while larger SOEs (State Owned Enterprises) backed by central or local governments are able to get loans largely because of the implicit guarantee that backing confers. Non performing loans granted by big four SOCBs (State owned commercial banks) to SOEs can be written off or transferred to AMCs (Asset Management Corporation). The State has infinite responsibility. But those granted to SMEs can’t benefit this advantage. The personnel who grant credits are always responsible for them. Generally, SMEs are considered to have a relatively high default risk. In 2003, average NPL ratio of lending to SMEs in principal commercial banks was 32.11%, 15.7 points more than the average NPL ratio in commercial banks. For this reason, the Big-Four which want to lessen NPL ratio in order to satisfy the regulatory rules defined by CBRC (3%-5%) will be very prudent to SME lending.Due to high risk in SME lending, banks demand SMEs to put enough properties in pledge, or to look for a guarantee as an indispensable condition to grant credit. Nonetheless, most of SMEs haven’t enough acceptable assets as a pledge. This is a great handicap in their financing. So a fully developed credit guarantee system is strongly needed.The present dependence on collateral and guarantee is indicative of the fact that banks now have limited capabilities to assess, process, and price loans to smaller customers. Improvement of these capabilities is the ultimate key to ensuring adequate access to credit for SMEs and will require substantial upgrading of internal systems for assessing and managing risk and considerable training of staff. However, it is particularly important that lenders have necessary flexibility to charge lending rates that adequately compensate for risks and costs of their loans. The SMEs have a relatively higher business failure rate than larger borrowers. Risks of lending to SMEs are further increased by their relatively poor information systems, which makes it difficult for banks to assess their creditworthiness. Official restrictions on bank’s flexibility in setting lending rates were an increasing impediment to SME lending as banks became more conservative in the effort to avoid further non performing loans.Empirical analyses by MOLNAR and TANAKA (2007) show that private firms have difficulties in obtaining financing from the formal banking system and their access to bank loans depends on their credit history, size and rating that can’t easily be manipulated through creative accounting. Loan decisions irrelevant of the financial health of the company may suggest that banks, especially the largest ones, don’t have appropriate incentives to develop monitoring and risk pricing skills as they mainly engage in lending to SOEs (i.e. they are not able to distinguish between genuine and manipulated performance indicators). Firms in manufacturing sector are more likely to get loans, probably due to the fact that manufacturing firms are more likely to possess assets that can be used as collateral compared to firms in service industries.4. Enlarging access to credits for dynamic sectors—Formal finance’s support for SME4.1 Credit guarantee Schemes (CGSs)As described above, lack of collateral is the chief difficulty in obtaining bank loans for SMEs. Collateral or loan guarantee, or both, have become an essential precondition for most SME lending in China.Improving financing for SMEs undergoing substantial expansion has become a main concern for government. The central government has taken many steps to improve the flow of credits to SMEs in urban areas. Besides urging banks to penetrate that market, the government has promoted the establishment of credit guarantee schemes for smaller firms. The largest component of such schemes is the government-sponsored credit guarantee institutions established by municipalities and provinces. In addition, there are a smaller number of member-SME-funded mutual guarantee funds and private-sector invested commercial guarantee companies, both forms of which pre-date the establishment of government credit guarantee institutions.Nearly all provincial governments have established credit guarantee institutions. Following a pilot programme starting in 1998, 30 provinces established credit guarantee institutions. There were more than 20 in 1997, more than 300 in 2000, 848 in 2002 (one third were private credit guarantee institutions), more than 3 500 in 2004 (more than 2 000 were private credit guarantee institutions), and the number of such institutions reached more than 4 000 in 2005, with the amount of loans carrying guarantees amounting to about 400 billion RMB. According to the statistics, there are 1 200 credit guarantee institutions which serve especially for SMEs (for credits and shares issue), which account for 32.28% in all of credit guarantee institutions. (The People’s Bank of China & China Finance, 23/01/2006)The credit guarantee institutions are highly diverse: some are funded from the government budgets, others by fees on participating businesses, or by private investors, or a mixture of these sources. More than 70% of the funds of the institutions originate from non-government sources. In lots of such institutions, the capital invested by private enterprises and individuals is more than 60% (Financial News, 07/09/2005). The organisational form of the institutions varies from public service units, to state or privately controlled shareholding enterprises, to fund management companies. Further, they can be non-profit or profit institutions and their business scope can be limited to guaranteeing firm borrowing or can cover a wider range of activities.The remainder of this section is organized as follows. 4.1.1 analyses guarantee business operation; 4.1.2 presents the establishment of guarantee system; 4.1.3 discusses risk managementand puts forward some proposals for reform; and finally, 4.1.4 outlines the importance of private credit guarantee institutions’ development.4.1.1 Guarantee contractThe enterprises which demand guarantee should satisfy the following conditions:-They should register in State Administration for Industry & Commerce.-They should have been created three years ago at least, and shown good performance in the three previous years.-The ratio of liabilities to assets can’t exceed 70%.-The domain in which enterprises work should be supported by State (for example, industrial policies, environmental protection policies, etc). If the domains are restrictedby State, credit guarantee institutions won’t accept their demands.Generally, credit guarantee institutions charge a price less than a half of bank’s lending interest rate2. The prices vary across different credit guarantee institutions, amounting to 0.8%-3% of guaranteed credits. In addition to this guarantee price, SMEs should also pay a guarantee fee which is calculated per year and is paid only once3. The guarantee fees vary with credit amounts and the risk level of SME. Guarantee fee rate is defined on the basis of credit risk degree, and it’s a floating rate. Guarantee fee rate is limited to 50% of banks’ lending rate in the same term at most4.Credit guarantee institutions often demand counter-guarantee as an essential condition for granting the guarantee. There are various forms of counter-guarantee, such as mortgages on land use rights and real estate; means of transportation, equipment, and other movables; cashable2The floor of bank’s lending interest rate is 6.12% for one year. There is no ceiling.3For the guarantee in short term (3 months, 6 months), the guarantee fee is calculated per month (annual guarantee fee rate/12).4 Target lending rate (adjusted by the People’s Bank of China, effective from August 19, 2006)Credits in short termduration<= 6 months: 5.58%6 months<duration<=1 year: 6.12%Credits in medium and long term1 year<duration<=3 years: 6.30%3 years<duration<=5 years: 6.48%duration>5 years: 6.84%saving instrument, actions, bills of exchange; pledges on transferable stocks, patents, and trademarks; the guarantee granted by another person or institution, the enterprise chief’s unlimited responsibility, etc.Most of guaranteed credits are in short term (<=one year). The guarantee covers normally the principal and the interests, eventually with loss undergone by creditors in certain guarantee contracts. This depends on the negotiation between bank, enterprise and credit guarantee institution. After granting the guarantee, the credit guarantee institutions should control the enterprises continuously.In case the enterprise can’t repay credit to bank on the maturity of contract, the bank will hold caution deposited by credit guarantee institution, which is called “substitutive refunding”. If the enterprise has a cash shortage, and she can refund credit later, we call it “temporary relay”. In contrast, if the enterprise hasn’t the capability to refund it, we call it “default credit”. Normally, credit guarantee institutions assume all of implied responsibility, i.e. they refund credits to banks, and then they demand enterprises to refund them. Certain banks give a time limit (for example, 3 months after the expiry of credit contract). If the enterprise can’t yet repay credit, the credit guarantee institution will repay it for the enterprise.The substitutive refunding ratio relies on the credit guarantee institutions’ risk management. It can be zero in certain credit guarantee institutions, with contrast that others will go bankrupt owing to only one substitutive refunding. Most of enterprises are responsible for their engagements, and so the substitutive refunding ratio is low.After refunding credit to the bank, the credit guarantee institution requires the enterprise to repay it, and all of interests (not only those paid to the bank, but also interests for the period after substitutive refunding), eventually with loss and fees for creditor. The interest rate demanded by credit guarantee institution for the period after repayment to bank can be the same as the one demanded by bank, or even higher than the bank’s lending interest rate. In case of no refunding, the credit guarantee institution will sell pledges. The pledges are sufficient for refunding credit generally, so the credit guarantee institution has little loss.The guarantee law (promulgated on June 30, 1995 by permanent committee National People’s Congress and effective from October 1, 1995) and the new bankruptcy law (voted in the 23rd meeting of 10th permanent committee National People’s Congress on August 27, 2006 and effective from June 1, 2007) protect well-functioning guarantee businesses and priority of guaranteed credits’ repayment.4.1.2 Guarantee systemNational Development and Reform Commission is organizing to establish a SME guarantee system. There are “one body, two wings, four levels” in this system: one body is mode body (different resources of capital, market-oriented operation, corporate governance, support for the best); two wings are commercial guarantee institutions and mutual guarantee institutions which are considered as supplementary (agricultural credit guarantee institutions included). There are four levels in credit guarantee system which have different functions-national, provincial, prefectoral and county.According to plan, the county and prefectoral credit guarantee institutions give guarantee for SMEs in their proper regions. The provincial credit guarantee institutions grant re-guarantee for these credit guarantee institutions at lower levels, and supervise them with the People’s Bank of China. They can also grant guarantee directly to SMEs. The national credit guarantee institutions are being established and will work as guarantors of last resort and grant re-guarantee to the credit guarantee institutions at lower levels.4.1.3 Risk managementIn most of guarantee businesses, the credit guarantee institutions have joint obligation5, i.e. banks transfer the whole credit risk to credit guarantee institutions. The only risk for banks is the substitutive refunding risk which comes from credit guarantee institutions. Credit guarantee institutions can also have an ordinary obligation6 or assume the risk proportionately with banks5 After the expiry of the contract, the banks can demand enterprises or credit guarantee institutions to repay credits.6After the expiry of the contract and before trial or arbitration, credit guarantee institutions can refuse to assume guarantee responsibility. After adjudication, banks use properties put in pledge to refund credits. The credit guarantee institutions bear loss with banks proportionately. The proportion is negotiated by them.together7. In a mature credit guarantee system, credit guarantee institutions should assume the risk proportionately with banks. The objective is to avoid moral hazard on any side. Banks or credit guarantee institutions can collude with enterprises to damage another side’s interest.SMEs should put their properties in pledge either in banks or in credit guarantee institutions as an indispensable condition for obtaining credits. The value of properties put in pledge covers the principal and the interests normally.Credit guarantee institutions should deposit a caution in banks as a basis of cooperation with them, which is also a precaution against risk in banks. If the enterprises can’t repay their credits at the term of the contract, banks will hold the caution. The caution rate in banks varies from 10% to 20% of the guaranteed credit amount, i.e. the credit granted by banks can’t exceed 10 times the caution deposited by credit guarantee institutions. For example, credit guarantee institution deposit 10 million yuans in a bank, this bank will lend a sum of 100 million yuans in maximum guaranteed by this institution8. Certain credit guarantee institutions are demanded a higher caution rate, at around 20%--33%. Others are demanded nothing.Sometimes, the banks demand also the enterprises to deposit a caution, which differs from the one deposited by credit guarantee institutions. These two cautions can coexist.The caution deposited by enterprises in credit guarantee institutions serves as a counter-guarantee. Some credit guarantee institutions demand enterprises to pay a caution. Most don’t do so. The caution is 2%--10% of guaranteed credit amount. If the enterprise can’t repay its credit according to the contract, credit guarantee institutions will hold part of the caution deposited by the enterprise. This part of the caution will increase along with time. Six months later, the credit guarantee institution will hold the whole caution. It’s punishment for the enterprise. Enterprises can’t require to refund the caution. This punishment differs from the substitutive refunding. The substitutive refunding is done with credit guarantee institutions’ ownership, that is the caution deposited in banks by credit guarantee institutions.7 e.g. banks bear 30% of risk.。