| Summary: | 碩士 === 國立中央大學 === 管理學院高階主管企管碩士班 === 97 === The small and medium-sized enterprises (SMEs) in Taiwan not only serve as the foundation stone and vital forces in course of industry development but also play a decisive role in the Taiwan’s economic miracles. Nonetheless, the motivation of SMEs to acquire working capital from financial institutions has been weaken due to their relatively smaller size, scanty market share, insufficient self-owned capital, financial reports incapable of revealing actual conditions fairly and accurately, weak management, lack of financing information as well as the life cycle and operation efficiency which tends to fluctuate markedly as external circumstances vary.
The collapse of Lehman Brothers Holdings Inc. in the second half of 2008 was followed by a global financial crisis and then led to a string of economic crises worldwide. The middle and small-size enterprises in Taiwan have suffered greatly in the great economic recession as well. Under the widespread gloom of global economy, how SMEs can survive the downturn and sustain the robust development will be the key to future success in the market. In addition, how SMEs can remain bolstered by financial institutions and credit facilities is an indispensable factor to enhancement of corporate management.
In addition to general analyses of financial ratios, the research focuses on how considerations of other non-financial factors and major factors are taken differently in the process of credit approval or rejection when each financial institution formulates its SME credit rating models. The conclusion of this research aims to formulate a three-win strategy to alleviate the imbalance of information between SMEs and financial institutions, to fully satisfy supply and demand of capital, and to assist the government in facilitating industry upgrade of SMEs and sustaining stable financial policies. By means of in-depth interview about the major factors in assessment of SME credit underwriting, the conclusion demonstrates that controls over credit quality or causes of non-performing loans are closely related with and corresponding to the basic assessment principles such as 5C and 5P.
Based on the conclusion of this research, for staff conducting SME credit underwriting, the following factors are ranked in a descending order of priority: Character, People, Payment, Capacity, Protection, Purpose, Perspective, Capital, Condition and Collateral.
Following prioritization of the major assessment factors, the research concludes that what influences credit decision-making most includes whether a corporation or its responsible person has overdue accounts or delayed repayment, whether the responsible person of a corporation uses revolving credits such as credit cards or advance cash such as cash card, whether a corporation is overloaded with financial burden that may incur unstable solvency, whether the management of a corporation can be recognized by the majority of banks and offered credit facilities, whether the revenue-to-loan ratio of a corporation is within a reasonable and appropriate range, whether the sources of a corporation’s revenues and funding are appropriate and specific, whether the outlook of a corporation and industry can assure the growth of its revenues, whether the revenues of a corporation is consistent with its capital flows recorded by its major correspondent banks, whether a corporation can remain competent under circumstances of industry, outlook and market competitions, whether the assets of a corporation are of market realization and value in case of any credit deterioration.
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