Credit Rating of SMEs Based on Euclid Approach Degree of Fuzzy Matter-element

Presently difficult financing has become a major factor of constraining the existence and development of small and medium-sized enterprises (SMEs). How to establish a credit rating system suitable to SMEs so as to evaluate the credit conditions of SMEs accurately and objectively has become a problem demanding prompt solution in the development of SMEs. This paper constructed a credit rating index system composed of earning ability, operating ability, repayment ability, cash flow condition, growing and development ability of enterprise, development perspectives, quality and management level of enterprise and credit status. Then it established a credit rating model of SMEs based on Euclid approach degree of fuzzy matter-element and developed a case study. The model built in this paper is simple and workable, and provides a new way for credit rating of SMEs.