Small Business Credit Scoring Based on Linear Programming (LP) Model

摘要

Along with the spread of credit rating in domestic commercial banks and our taking part in WTO, and in order to adapt to the new international economy environment, we should go further to perfect our small business credit system on the basis of referring to advanced experiences abroad. How to develop a reasonable and effective small business credit scoring technique within commercial banks is the key for them to realize risk control before granting and to further credit rating under the situation that there is no small business credit system in our country. Based on consulting varieties of references, we proceed with this dissertation surrounding small business credit and its scoring technique. We analyze the principles of Linear Programming (LP) model in the way of practical analysis, and we test and explain the result based on economics. By comparing theoretically and practically, we finally come to the conclusion that in credit evaluation, it is reasonable to consider using LP theory to establish small business credit scoring model in the internal of domestic commercial banks.