Comparative Analysis of Internet Financing Modes Based on Smes' Perspective

Abstract

In China, it is difficult for small and medium-sized enterprises (SMEs) to gain access to external financial support under the traditional financial mode. However, the internet financing can alleviate this problem effectively, which broadens access to finance for SMEs and promotes their development. By comparing three mainstream Internet financing modes (i.e., equity crowdfunding, P2P lending and big data finance), this paper analyses the unique characteristics of each model and proposes more targeted and specific financing suggestions accordingly for SMEs at different development stages. According to the analysis, equity crowdfunding, P2P lending and online micro-credit loan can cater to the funding demands of SMEs in the introduction, growth, and maturity stages respectively. Meanwhile, enterprises in decline should seek financing strategies that suit their current situation. Based on the existing general risks of Internet financing in China, development suggestions from three levels (i.e., the state, the platform, and the SMEs themselves) are proposed. These results shed light on guiding further exploration of financing modes for Chinese SMEs.