Control of small and micro enterprise loan risk should have new ideas

expand small business loans are commercial banks ' stronger capital constraints, the inevitable choice of interest rate liberalization and disintermediation. The capital management of commercial banks (the trial) was implemented in early 2013, provides qualified small business credit risk weighting of 75%, down from 100% general corporate credit risk-weighted, compared to the average corporate loan small business loan takes less of regulatory capital, from the standpoint of capital conservation, commercial banks need to develop the small and micro enterprise loans. With the deepening of reform of interest rate liberalization and disintermediation, commercial banks must also develop small and micro enterprise loans to increase bargaining power, maintain the relative stability of spread.

from the United States and the United Kingdom and other developed economies in the world, banks and venture capital firms are important channels for small business financing. The commercial bank is one of the most important financial institutions, whose history dates back to the old Babylonian period BC. Later emergence of venture capital, and late 19th century, United States private banks through the steel, oil and get higher return on investment in emerging industries such as railways, this is the earliest prototypes of venture capital. In the 1970 of the 20th century, the venture began in the United States and around the world the rapid development of a large number of venture capital firms continue to emerge. Traditional commercial banks and venture capital firms have a great deal of difference, which is mainly reflected in the following aspects:

first, from the source. Most of commercial bank loan funds come from debt financing, including deposits and interbank deposits, interbank and financial bonds, smaller equity financing as a percentage of its operating funds and venture capital funds the vast majority come from the shareholders ' equity of the company.

Second, from a contractual relationship. The debtor of commercial banks and the commercial banks do not have commercial bank loans or investments to establish a clear contractual agreement, cannot bear too much risk and security of funding for commercial banks is the first; and venture investments have been in contract scope and risk explicitly told shareholders.

third, from the investment. In the case of low interest rates on deposits, bank creditors in particular, depositors will naturally not allow high risk of commercial bank debt investment and lending, commercial bank on corporate and Government bonds are the main assets, mainly for mature industries of medium and large enterprises and venture capital company's main asset is the early-stage enterprise and in particular emerging industries equity investment in early-stage enterprises.

Finally, risk control. Commercial banks pay more attention to the debt situation, including assets, liabilities, cash flow and collateral, and less attention to the growth of enterprises and venture capital firms are not too much current solvency, the main concern is the growth and development prospects of the enterprise.

Finally, from the exit. Withdrawal of the claims rely mainly on the debtor of commercial banks ways to repay principal and interest, with the development of the financial markets, asset securitization and loan transactions, such as exit has also been widely used; through repurchase agreements, most of the venture capital firms in the primary market or the transfer of shares on the secondary market to recover their investments.

last, from a risk-reward perspective. Commercial banks of main assets is foreign of claims, and many claims are is has guarantees of, its risk relative lower, returns rate also relative lower; and venture capital company most of investment is no guarantees, and high risk of investment, and many are is investment Yu high-tech venture enterprise, even in developed high-tech enterprise of venture success rate also only 20%-30%, high of risk also means with high of risk returns.

enterprises in the start-up stage financing is realized by own funds, part of the innovation ability, advanced business models of enterprise to secure the support of venture capital firms. In the early stage of business growth, venture funding will continue to support or for commercial bank loans support, but commercial bank loans generally require mortgage, commercial security or Government guarantees. With the further growth of small businesses, some small businesses will choose in the open market to raise funds or to continue financing from commercial banks.

from United States of practice experience view, for start-up period small micro-enterprise of loan, most commercial banks and no too much involved, to Silicon Valley Bank for representative of minority technology Bank is exception, this main is because venture enterprise of risk larger, most enterprise in years Hou are will disappeared, and lack effective mortgage real; but for into long-term of small enterprise, United States of large commercial banks and Community Bank are has widely involved, to rich Bank for representative.

traditional of commercial banks and venture capital company in solution small micro-enterprise financing aspects are exists with itself of advantage and disadvantage; commercial banks has funds Shang of advantage, but on Enterprise prospects of judge and market information of keen degrees behind Yu venture capital company; and venture capital company contrary, its funds scale more commercial banks, relative smaller, so impossible on small micro-enterprise for big range, and unlimited of funds support, Acuity of judgement and market information about the business Outlook is better than commercial banks.

from the enterprises supported by stage of development, venture capital firms generally support to start-up companies, commercial banks, generally supports the growth and maturity of the enterprise, but early-stage and growth-stage and not strictly a clear border. Commercial banks and venture capital companies on the advantages and disadvantages are complementary, which makes it possible for cooperation between commercial banks and venture capital firms, and will promote the social efficiency increase and reduction of risk in the financial system.

small business loans in technology-oriented small and micro enterprise loan has some unique features, more often small micro-enterprise lending risks and not just rely on the measurement model to judge. Newly established small enterprises, not only in a small amount of cash or cash flow, not much fixed assets, measure the risk measurement model for small and micro enterprises, hence the concept of community banking relationship lending, with customers to establish long-term and comprehensive, instead of on the prospects and customers to evaluate the risk.

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