Bank Credit Practices：The Evidence on Taiwanese SMEs’ Credit Assessments

• Main Authors: Hsu, Ying-Chieh, 許英傑
• Other Authors: 馬嘉應
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/63969774200973507633

碩士 === 東吳大學 === 會計學系 === 102 === 　　Credit assessments contains a wide range of factors, and they are susceptible to personal knowledge, experience and professional impact of subjective consciousness. This study focuses on, bank financing when assessing SME credit assessment principles common practice for the foundation, We use questionnaire to investigate, the difference of viewpoints on financing factors betweene banking executives and financial officers. The results indicate that there are significant differences between the two groups of people on the following important assess factors : 1.Do the SMEs superintendent and the guarantor often use usurious loan or credit card payments pay the minimum amount due only? 2.Whether loan capital purposes are exact or not ? 3.Years of SMEs and seniority of the person in charge of industry. 4.Are source of repayment of loans exact ? 5.The financial statement analysis of the SME. 6.JCIC information: How many bank loans to this company? And how many bank survey of this enterprise credit information? 7.Company and the person in charge or his spouse's estate mortgage situation. 8.Responsible persons and spouses, owned real estate, deposits, financial condition, and property their changes. 9.JCIC information: total borrowing from the corporate bank, the type of credit and the credit compliance. 10.The operation of the company and the financial status, including the production and marketing, the supply chain, transaction condition and debts. 11.Cheque cashing condition using. 　　According to the findings, the analysis of cognitive differences between two groups of people on the credit assessment of the factors circumstances, and made five recommendations: 1.The person in charge and the guarantor of the SME shall keep good financial habits and use the debit cards and credit cards less frequently as well as not to pay the minimum payment. The bank credit review and loan personnel shall understand the independent situation of the person in charge and the guarantor of the SME in terms of their financial situation and determine if the personal financial situation would influence the corporation’s operation and finance? 2.By order of the bank for credit when assessing reasonably practicable, the discretion to set aside loan-free control the use of funds, On one hand, it would reduce the bank’s operational cost and increase the flexibility of the fund. The SME can provide concrete loan usage plan as to facilitate the credit assessment operation of the bank. 3.It is better for the SME to deposit the receivables (or notes) from the selling in the account of the loan bank. It would help the bank to control the source of repayment which would be beneficial for a more favorable credit condition. Otherwise, the SME can also choose another bank of sound management as its main operational institution. Through the deposit of the receivables, cash and demand deposits, the operational cost of capital allocation can be reduced. This would increase the reliability of the bank towards the enterprise and in this way, it would be easier for the enterprises to obtain a higher line of credit. 4.The bank shall fully understand the operational mode and production procedures of the enterprise. It shall provide the adequate credit product based on the enterprise’s property. The SME shall establish a sound accounting system having all transactions recoded and increase the financial transparency. In this way, it would be easier for the bank to understand the business operation and financial status. 5.SMEs should strengthen its commitment check cashing, and credit performance, maintain a good credit history in order to take full advantage of bank financing.