加拿大essay写作--Financing difficulties for smes

留学生写作网（www.pnstudy.com）-专业留学生作业辅导中心留学生写作网（pnstudy）为留学生提供高效、优质的论文服务加拿大 essay 写作-Financing difficulties for smesCredit rationing refers to the exclusion of some borrowers from the credit market due to excessive demand for loans. Credit rationing is usually two situations may occur: part of the applicant can obtain the corresponding loan, the other section was refused, for rejected the applicant, in the case of willing to pay higher interest, often cannot get a loan, the supply of credit is less than the demand for credit; The creditor cannot meet all the loan amount requirements of the borrower, and the amount of loan application can only be partially met. Stiglitz and Weiss proposed the s-w model for credit rationing theory. They believe that the main reason for the difficulty of enterprise financing is information asymmetry. They believe that the emergence of information asymmetry in the process of enterprise financing will inevitably lead to adverse selection and moral hazard. Adverse selection occurs before a business deals with its creditors, which may whitewash or falsify information in order to obtain funds. Creditors may not be able to grasp the financial situation and operating results of the enterprise, and it is difficult to evaluate the enterprise according to the information provided by the enterprise. Finally, it may lead to better run enterprises unwilling to bear high financing costs and exit the credit market. Moral hazard is the deal happens, enterprises obtain funds for loans may change after, not to use money, according to an agreement with creditors not in accordance with the loan contract to choose investment projects, but the loans to riskier, higher-yielding projects. It is difficult for creditors to effectively supervise the operation and management activities of enterprises, which leads to excessive supervision costs.Laper and Graham revealed three stages of bank credit rationing: screening, evaluation, and rationing. In the screening stage, the bank manager will preliminarily screen the information of qualified enterprises, including the credit status of enterprises and the demand for loans. The staff handling the loan carries out a detailed comprehensive risk analysis of the enterprise applying for the loan in the evaluation stage, including the detailed credit records of the enterprise and the types of collateral. Companies that did not meet the loan requirements were excluded from the credit market, so credit rationing was created. Finally, in the rationing stage, the bank determines the final loan plan according to its own interests, and provides the amount and interest rate of enterprise loans. Okurut argues that the basic conditions of borrowers, the characteristics of businesses and the types of loans they lend influence whether Banks will create credit rationing. The borrower's profile includes basic information such as age, gender, education background, credit history, etc. The characteristics of an enterprise include years of operation and the value of the mortgaged property. The types of loans include the demand for the amount of loans, the length of the loans and the interest rate. Ghost thinks the value of the collateral is an important factor affecting credit rationing. If the borrower is unable to repay the loan within a specified period of time, the 留学生写作网（www.pnstudy.com）-专业留学生作业辅导中心留学生写作网（pnstudy）为留学生提供高效、优质的论文服务collateral will allow the bank to avoid losses. Hall and Weinstein, however, found the value of corporate collateral hard to measure. Berger introduces the concept of relational financing, that is, in the long-term interaction, the soft information other than the information that the creditor can collect. This soft information is obtained through long-term interaction with the borrower. At the same time, there may be no public private information. James thinks that the close relationship between enterprises and Banks can be regarded as an important aspect of the feasibility of obtaining credit. So-called credit availability, usually is refers to the enterprise in the information opaque or financial crisis, rely on relationship lending, the probability of obtaining credit can increase, at the same time signal its good prospect. Berger and Udell believe that by means of relational financing, creditors can communicate with enterprises, shareholders and local communities to obtain information and use it as a basis for granting credit to creditors. At the same time, it can reduce the financing cost and help enterprises to lower interest rate or increase the feasibility of getting loans when they get loans.Some small and medium-sized enterprises lack a reasonable corporate governance structure and a simple organizational structure. Many decisions are made by the boss alone. Small and medium-sized enterprise operators of cultural level is low, the lack of advanced management method, enterprise internal mana