Research on Small and Medium Enterprises Trade Credit Financing Based on Evolutionary Game

On the condition that it is difficult for small and medium enterprises (SMEs) to finance from specialized financial institutions such as banks, trade credit has become an important financing channel for SMEs. Based on evolutionary game theory and replicator dynamics equation, this paper studies the evolutionary game process of strategy choosing for bounded rational credit providers and SMEs in the process of trade credit financing. The results indicate that there are several factors which have significant effects on the development of SMEs trade credit financing, including the credit provider´s extra profit arisen from implementing the strategy of increasing credit, the trade credit financing costs of SMEs, as well as the transmission speed and range of default information.