China's Private Financial Private Financial Support For Smes

In our country, the Small and Middle business(SMEs) financial issues hasn't been getting to resolve effectively, Along with the fast development of national economy, This problem is gradually outstanding to obstruct seriously also in the development speed of the private SMEs. Such as its multifarious financial characteristic. For example, "lower capital scale", "higher capital demands frequency"and "urgent timetable for capital demands". Amount of credit generally only 1% of big business enterprise is or so, credit frequency is three-five as large as big business enterprise, say for the stateowned commercial bank, the cost of private SMES loan management is high, the risk is high, And the rate of return isn't high, as this kind of result make the commeicial bank do not wish to put the excessive funds into the private SMEs loans business. But in the economic movement of the present stage of our country, the private SMEs is a more important pioneer, with it the grown stronger , the financing need is specially prosperous, when be the existing financial system can't resolve a difficult problem in the financing of the private SMEs, the civil self-moving financial innovation starts then, in the circumstances, private finance because of it is opposite in the formal financial much lower bargain cost with more direct self-moving encourage a mechanism but have become numerous in private SMEs a kind of important financial methods and channels.This paper based on the analysis on the actuality and it's cause of financing problems of the private SMEs, and it analysised the basis of academics and the actual circumstances on the private finance is real or not to support the development of the private SMEs, and chooses the ningbo region as a success example, because the activity of private finance in this area is developed. And profound analyzes the feature of the demand for private SMEs financing, and Take charge of a section from supply and demand both sides of the private financial funds and the formal finance to analysis the private SMEs why choose private finance for the source of the financing channel, then Point out the private finance for the private SMEs is a kind of to have much lower trade expenses, more high-efficiency of within finance, finally, Learn from other countrys successful experiences may help us to solve the same problem in China. Vifith considering the national situations and conditions, this paper put forward some major possible measures to mitigate the private SMES financing obstacles in China.