The Suggestions And Perfect The Financial Guaranty System For SMEs In Hunan Province

The financing difficulty of Small and Medium Enterprises (SMEs) is one problem that China needs to solve for its economic development. For a long time, many SMEs are at the stage of being lack of capital during their operation and development under the influence of their own developing level and narrowly financing channels. Small operational scales, weak financing power, and high-risk financing bring the result that no relative guaranty systems pledge for SMEs' financing, therefore, banks and other financial institutions are unwilling to invest in SMEs in risk control and management terms, and then SMEs cannot get enough financing supports for their development. This article will start with the developing status of SMEs in Hunan Province; analyze the whole condition that resulted in financing difficulties in Hunan Province; and point out that the effective way is to energetically develop the financial guaranty system for SMEs. This article systematically analyzes and studies the status of financial guaranty system for SMEs in Hunan Province; compares with practically experience and effective methods other market economy countries used to promote development of SMEs' and quicken the construction of financial guaranty system; and poses suggestions and measures to further develop and perfect the financial guaranty system for SMEs in Hunan Province. That is "guides and supports of governments, investment of social capital, and market operation" to help solve the loan and guaranty problems, effectively expand the financing channels of SMEs and guide the invest direction of SMEs, and strengthen the operation power of SMEs. To promote the reform and development of credit system of China, we will establish the financial guaranty system for SMEs, set up good relationship between SMEs and banks, and raise the credit scale of SMEs. Meanwhile, as an important part of service system for SMEs, the financial guaranty system for SMEs regards solving problems of financial difficulties for SMEs as its short-term aim, and establish its long-term aim upon promoting healthy development of SMEs and leading SMEs to comprehensively work out their roles in increasing employment and financial income, promoting technology creation and economic development of China.