Author(s)

Xiaohong Zou

Corresponding Author

Xiaohong Zou

ABSTRACT

The difficulty and high cost of financing have always been a major problem in the rapid development of small and micro enterprises. In order to support the development of small and medium-sized enterprises, the government has issued various policies and measures, such as establishing financing re-guarantee institutions for small and medium-sized enterprises, allowing commercial banks to have certain tolerance for the non-performing loans of small and micro enterprises, requiring commercial banks to maintain a certain growth rate for the loan balance of small and micro enterprises every year, and giving a certain amount of subsidies to the commercial banks that issue small and micro enterprise loans. However, due to the problems of small and micro enterprises, such as small business scale, weak anti risk ability, mostly private enterprises, high credit risk, and inability to provide sufficient collateral, commercial banks still prefer large and medium-sized customers when choosing credit customers. This paper analyzes the current situation and existing problems of small and micro enterprise credit business of rural commercial banks. put forward suggestions for rural commercial banks to carry out credit business for small and micro enterprises, in order to solve the financing difficulties of small and micro enterprises and realize the common development of enterprises and banks.

KEYWORDS

Credit business, Small and Medium-sized Enterprise, Model, Financing