The Legal Research On Credit Guarantee System For Small And Medium-sized Enterprises In China

Along with the establishment of market economy and the adjustment of economic structure of our country, small and medium-sized enterprises (SMEs) emerged in a rush and have become an important part of our national economy. They have been playing an important role in creating jobs, boosting economic growth and promoting technological innovation. However, the development of SMEs is faced with mountains of difficulties from factors such as the volatility of market environment, the cruelty of market competition and the low ability of SMEs themselves to resist risks. Among them, shortage of money is the biggest problem. The experiences of developed countries and regions show that SMEs credit guarantee system is an effective way to solve the financing difficulties of SMEs. In China, the exploring for SMEs credit guarantee system began in the end of 20th century, after 10 years of development, the system has already begun to take shape, but still imperfect, and the relevent legislation still have defects, all of these seriously restrict the development of credit guarantee mechanism. This paper intends to analyze our current credit guarantee system, find out its defects, and finally put forward corresponding suggestions to improve it.This paper consists of four sections:Firstly, it analyzes the current financing situation of SMEs. Financing problems are the background of SMEs credit guarantee mechanism. Based on defining the scope of Smes, this section discusses the function of SMEs as well as the financing they are facing at present in our country. Through an indepth study on the reasons for financing difficulties, it reveals that credit guarantee is an effective measure to slove the financing problem of SMEs. At the same time, it introduces the function of this credit guarantee.Secondly, it discusses the theoretical basis of SMEs credit guarantee system. Using the basic theory of law, this section throughly investigated the legal relation between subjects involved in SMEs credit guarantee system. First, the concept of "credit""security" and "credit guarantee" is discussed. Then, a comparison between traditional guarantee and cedit guarantee is made, which reveals the independent value of SMEs credit guarantee system. At the same time, it interpretates the characteristics of SMEs credit guarantee system from two aspects: the specificity of the legal subject and the legal relationship between each parties.Among them, the legal relationship between credit guarantee institutions, banks and other financial institutions and SMEs are the focus of this section. Thirdly, it discusses foreign experiences on cedit guarantee system. This section analyzes Japanese and American SMEs credit guarantee system respectively and summarizes its common feature, including perfect legal system, on the basis of state financial resource and sources of funds have various channels, sound mechanism on dispersing and controlling risks, perfect financial system and service system.Fourthly, practices and defects of SMEs credit guarantee system in China. Based on exploring the trial practise of SMEs credit guarantee system in China, this section points out the deficiency of credit guarantee mechanism in our country which includs absence of credit law, supporting regulations and mechanism on dispersing and controlling risks, etc.Fifthly, it provides suggestion for perfecting the SMEs credit guarantee mechanism. To the problems raised in preceding section, it presents the corresponding improvement suggestions: providing special legal safeguard for SMEs credit guarantee system, perfecting the construction of social credit legal system, perfecting mechanism on risk diversification and compensatory.