General

International trade financing refers to the financing and credit activities in all links of international trade settlement. According to the definition of the Basel Agreement, trade financing refers to short-term structured financing based on inventories, prepayments and receivables in commodity transactions. International trade financing is the general term for banks to provide convenient funds for import and export commodities around all links of international settlement. At present, China's small and medium-sized enterprises have financing difficulties in international trade financing, which are due to the reasons of enterprises themselves, banking system and government policies and regulations.

There are a large number of small export enterprises in China, but the business scale is generally small, the capital strength is limited, the overall efficiency is poor, the accounting is not standardized, the financial information is not transparent, and the necessary collateral is lacking, which leads to poor credit status and poor financing ability of enterprises. At the same time, there is also speculative operation in the process of trade operation. For example, when the price difference between the inside and outside of a certain commodity is large in a certain period, domestic traders compete to import. For example, newsprint, pulp, chemical fiber, steel, sugar, refined oil, etc., once the domestic market price falls and the payment for goods cannot be recovered, the bank funds will face risks, which will hinder the traditional trade financing.

The interest rate of new international trade financial derivatives is usually high, making it difficult for small and micro enterprises to obtain such financing; However, the export of small and micro enterprises is limited by scale. Generally, the scale of single import and export business is small and the transaction rate is high, which makes it difficult for enterprises to bear. For example, when handling factoring business, the factoring fee is about 1%, and enterprises often wander between increasing costs and reducing risks. In addition, with the increasingly fierce competition in international trade and the shrinking profit space, the high rate of derivative financial products has become a stumbling block to its promotion. In addition, the low value-added and the lack of well-known brands are the disadvantages of the import and export products of small and micro enterprises in China. In the case of the appreciation of the RMB, the disadvantages of the industrial disadvantages are increasingly prominent, and it is also not conducive to small and micro enterprises to carry out international trade financing.

At present, China's small and medium-sized enterprises still use the traditional transaction mode formed for many years, and their understanding of export risk still stays at the control level of non-letter of credit business, ignoring the investigation of the importer's credit, thus exacerbating the enterprise's collection risk. According to a survey by the Ministry of Commerce, only 11% of China's import and export enterprises have established their own credit supervision system, and 93% of them have foreign investment background. Many domestic enterprises do not understand the risks and costs of overseas debts. Over time, it will become increasingly difficult to recover these debts. At present, malicious fraud accounts for 66% of China's overseas delinquency cases. At the same time, there are not many small and medium-sized enterprises using external insurance institutions such as export credit insurance to avoid risks, which directly affects the trade financing of small and medium-sized enterprises in China.

China's small and micro enterprises have been involved in the field of foreign trade for a relatively short time, lack of high-quality compound business personnel, lack of correct estimation of international trade risks, lack of knowledge of international trade financing, and how to flexibly use financing means to attract foreign customers and complete transactions, all of which restrict the success of small and medium-sized enterprises in international trade financing.

Lack of appropriate collateral, financing difficulties

The land of most small and micro enterprises is occupied without compensation, and there is no mortgage condition, pledge or voucher. Although the enterprise machinery and equipment can be used as mortgage, the mortgage rate is low, and the cost is high, the procedures are cumbersome, and the timeliness is poor, which is inconsistent with the characteristics of convenient and fast trade financing. If the guarantee is not implemented, the bank cannot grant its financing line. In order to solve the guarantee problem, small and micro enterprises often ask several enterprises for mutual guarantee, which not only has limited guarantee capacity, but also lays hidden dangers for the long-term operation of enterprises. Therefore, the life cycle of small enterprises is relatively short, and banks are unwilling to take risks, forming a vicious circle.