A Study on Vulnerability of Credit Chain and Risk Control of SME Cluster Financing

Nowadays SME clusters have become important economic bodies in national economy in China. However, financing difficulties of SME cluster may be the foremost difficulty that restricts economic development. So an innovative trend that SME cluster financing business should be developed to solve the problem. It is kind of secured loans based on the guarantee of small and medium guarantee companies. Through the analyses of Chinese credit chain and financing risk control process, we come to a conclusion: "SME - Small and Medium Guarantee Company - Commercial Bank" is still a relatively weak type of credit chain which is not adaptable for the development of SME cluster financing, the same as the corresponding financial risk control which based on the situation of guarantee companies and credit chain. Therefore, these financing mechanisms of SME clusters still have disadvantage & vulnerability of the credit chain and risk control in China.