Research on Internet Finance and SME Financing Model and Risk

Abstract

The Internet finance industry is expanding quickly, and at the same time, it is closely linked to the growth of small and medium-sized businesses. This study discusses the history of Internet finance, the present state of the sector, its financing model, its role in financing small and medium-sized businesses, and further analysis of the risks associated with its financing model. At the same time, this paper also puts forward management suggestions for small and medium-sized enterprises, as well as ways and means to improve risk management. This paper analyzes the previous literature and data, and it can be concluded that Internet finance is a new form of financial business that makes full use of Internet technology to carry out profound changes in financial business. It refers to the emerging financial model that realizes financing, payment, and information intermediaries by means of Internet technology and mobile communication technology, which is different from the indirect financing of commercial banks and the direct financing of the capital market.