A Research On Private Lending And The SMEs' Financing

After years of market economic development, the modern financial system has been greatly improved. At the same time, there is no formal financial system which can fully meet all the needs of the financial markets. China's current financial system decided not to meet all the financing needs of SMEs. In the case of investment channels, some have surplus or idle funds of the natural resources companies need to find way out. In this case, private loans become the inevitable choice to meet the demand and supply sides. Years of economic development, private lending as an important source of financing for SMEs.There are some private lending can not overcome their own weaknesses, such as government difficult to manage, easy to by unscrupulous elements, such as weak anti-risk ability, they tend to be government regulation, banning private financial reasons. Borrowing despite some shortcomings, but its financial markets in the active, rational allocation of resources, promoting economic development has played a certain role, is a useful complement to formal finance. When borrowing in promoting the role of economic development throughout the show step by step, the state began to pay attention only to study its development, the domestic borrowing of late date. This private lending institution to improve and promote the development of SMEs starting point for the study has some practical significance.Full-text is divided into seven parts, followed by an introduction, chapter 1-5 concluding remark, the basic framework is as follows:The first part is an introduction. Full text of the research background, research goals, ideas and innovation; second section describes the basic concepts of the theory outlined and defined. Including the financing of small and medium enterprises and private lending literature review, the basic definition of the concept; the third section describes the current situation of SMEs. Including the status of SME financing, SME financing characteristics, status of financing of SMEs; fourth section describes the impact of borrowing on the financing of SMEs. Including the positive effects of private lending, private lending of the negative effects; fifth section describes the financing of private lending to SMEs factors. Including the characteristics of private lending, private lending and formal financial analysis of the comparative advantages of SMEs financing from private lending feasibility analysis, empirical analysis of the financing of SMEs borrowing; Part sixth describes how to guide the formal development of private lending. Legally correct view from private lending development, strengthening the supervision of financial intermediaries to strengthen the commercial banks of financial product innovation, industry associations in the short-term financing to strengthen. Government should provide a good environment for the development of private lending and expansion of communication range, the strengthening of civil debt monitoring; seventh part is the conclusion.As the research on private lending is a huge systematic project, need to study the contents of the lot. In this limited study, certainly can not be fully detailed, and even there some lack. Such as the invisibility of private lending is not standardized, resulting in incomplete statistical data of this article. This article is based on a certain survey of practical experience and theoretical basis for the development of SMEs in the present day, are experiencing a civil financing for the development of private lending summarizes several policy recommendations, Although the study is also among the very inadequate However, hope for the future development of SME financing analytical basis and policy recommendations.