Study Of Sme Loan Financing Legal Issues

The financing of SME (small and medium-sized enterprise) is an important issue in our country's economic development process. The development of our country's economy must depend on SME's support, however, the SME has its own superiority while financing become the hindrance of SME's further development.One of our SME's financing important ways is the bank loan, however, the characteristic of SME has decided that the majority SME lack the qualified pawn which the bank loan needs, which also directly caused the SME hard to succeed obtains the bank loan support. On the other hand, the SME credit insufficient is also a big reason that bank does not want to loan to a SME. Therefore, if our country wants to support the SME's development, it must solve the financing problem. One of the important solutions is to expand the guarantee scope. The consummate chattel mortgage guarantee system can solve the SME's financing, but the present stage of our country's chattel mortgage guarantee system exist some unreasonable points. Therefore, there must be a reform for our country's chattel mortgage guarantee system in order to give the SME financing a solid support.Another important way to solve this situation is that consummates our country enterprise's letter system. In order to guarantee the SME's repayments ability, the banks have to get massive investigated information that asymmetrical brings to reduce the risks. A mature enterprise's letter system can be possible maximum limit the enterprise information in the reasonable scope to open, reduces the bank transaction cost , so that to solve the SME's financing difficult position.