Small Loan Company's Legal Structure

Pilot since 2005 to now, the country has set up nearly 2,600 micro-loan companies, the total size of credit capital has been more than 1900 billion yuan. The development of small loan company has proved that the research has changed from the theoretical stage of the necessity of its existence, to how to support and standardize its development, small loan companies to meet the needs of local financing to make up the formal financial system of local inadequate investment credit has been showing a larger advantage. However, due to their high-risk financial operations, coupled with the current structure and health risk prevention and control mechanism is not complete, small loan companies in the course of business there exist real risks. As the scale of microfinance industry capital growth of the company, if its operating result due to their own industry risk, it is possible to quickly transfer the risk to the whole industry, and even affect the country's financial order. This paper analyzed and summarized the status of small loans based on the company's business, suggesting that the risk faced by small loan companies, small loan company is now led him to study how to apply the law to prevent business risk for small loan companies and government regulators to provide anti- the application of risk control tools, with some theoretical and practical significance.This article is divided into five parts: The first part is an overview of small loan companies. Small loan company is to clarify the implementation of microfinance institutions and their meaning of existence, a brief description of methods by comparing the nature of the legal small loan company property, small loan companies summarized the basis of risk control, including legislative basis, the theoretical basis , regulatory basis, which constitutes a future system of small loans companies build the foundation conditions.The second part is the process of establishing micro-loan companies prompted the legal risks and corresponding system design principles, mainly from the registered capital, the number of shareholders and shareholding ratio, staff qualifications, procedures of establishment, business scope, the six sources of credit funds aspects in the establishment of small loan companies in the course of the Theory of Economic embodiment of the process of its establishment, and then explain the general civil and commercial matters with the main features of the essence.The third part is a small loan company loans to business lending to analyze the establishment of legal relations, from the point of view on the loan structure elements, indicating that its business model with commercial banks and private lending different, reflecting the value of their own based micro-credit, specific legislation which also has a clear orientation mechanism, legal and reasonable legal relationship between the borrower has an important significance of risk prevention.The fourth part is the small loan company secured loan business in the establishment of the legal relationship analysis using comparative analysis, the author from the statutory collateral, collateral security, were described in three areas to ensure the security of their business model with a combination of methods and characteristics, suggesting that the risk associated and the corresponding risk prevention measures, to guide small loan lending companies how to create a legitimate and effective means to protect the security of credit capital security, while maintaining the flexibility of micro-credit itself, as far as possible set aside within the legal framework more flexible space.The fifth part is the third and fourth part of the two types of legal relations law to establish the most effective arrangements for the contract based on the use of operations analysis shows that effective and reasonable contractual arrangements for the safety of small loan companies loans essential to ensure that the effective establishment of legal relationships involved, and thus protect the safety of the corresponding claims.The final is the conclusion, the significance of the full-text content and brief review, the author of the small loan company that the future development of industry expectations and aspirations and further research directions.