Small and Medium Enterprises Credit Decision-making Based on Multi-stage Compound Real Options

摘要

The flourish of Small and Medium Enterprises (SMEs) reflects they have been the new power of China’s economy development in. Capital support is very crucial for SMEs’ growth. While the direct financing market awaits further development in China, SMEs still have to reliant on credit. So, it’s imperative to develop SMEs credit. The high-risk characteristics make it more important to select SMEs effectively. The article puts forward an innovation that use the mature venture capital evaluation approach to evaluate SMEs credit, and achieve SMEs credit innovation approach based on multistage compound real options, both expanding commercial banks profit and providing financial support to SMEs.