Diseussion On The Indirect Financingof SMEs In China

SMEs is the most dynamic force in the economic development of China.It is also played a positive role in the world economy. Decades of economic development of reform and opening shows that SMEs have become a force in China's economic development, and promote the social and economic progress, promote social employment, technological innovation, but the rapid development of SMEs at the same time, there will inevitably face to the contradictions which need to be addressed, such as poor source of external funding sources,poor internal credit and the lack of laws and regulations ,which bring the financing obstacles, resulting in a bottleneck that restricting its development.This paper introduces the basic theory of financing of SMEs, defined the SMEs from a legal perspective and describe indirect financing in the current situation. on the basis of the overview of financing of SMEs, This paper argues that easing the financing difficulties of SMEs through the government, banks, credit guarantee system. This paper is divided into three parts: The first part is the basic content of the financing of SMEs and introduced the current status of indirect financing in China;the second part is the problems of legal analysis on the indirect financing of SMEs in China,and proposed the problems of financing of SMEs are largely due to government policies and regulations which do not support, unreasonable bank loans system, flawed legislation financing and perfectable credit guarantee system ,etc. In the third part ,based on the second part of the analysis , proposed improves government policies and the tax system, modify the financing laws and regulations, establishment of SMEs credit guarantee system for banks and SMEs policies to alleviate the indirect financing of SMEs for the purpose of the further development of SMEs.