Research Of The Legalization Of Folk Loan Impact On SMEs Financing

Folk loan in our country has a long history,In its long development stage, it hasexperienced prosperity and decline. After years of market economy development, the modernfinancial system to get a great improvement，however, formal financial system still cannotcompletely meet the financial market all the needs, at the same time, private capital have alarge idle funds because of the investment channels. Small and mediumsized enterprises inthe whole national economy plays a very important part, At present, small and medium-sizedenterprise registered in the number of registration enterprise is over95%of the total and evenhigher, contributed to more than70%of GDP, Sadly, it didn’t get and position matchingtreatment and corresponding attention. Due to the weak position of SMEs in China, the plightof the financing on the way forward in the rapid development of SMEs in China has becomethe most difficult unbridgeable gap.Folk lending standards has become the top priority, is alsoan important link in the social and economic development.This article summarized from a variety of domestic and foreign research, On the basis ofthe theory,given the departure of this study defined, Then analyzed the status andcharacteristics of China’s small and medium-sized enterprises and private lending, analysis ofthe financing of SMEs specific reasons,Related to the problems and reasons for thedevelopment of private lending because of its own shortcomings highlighted,On the basis ofthe division of SME financial cycles, respectively to analyze the feasibility select differentfinancing and reality The article is based on Wenzhou folk loan status and try, analysis the characteristics of folk loan and according to the characteristics of the financing of small andmedium enterprises choose private loan financing.Through the analysis,in order to indicatethe folk lending in the status of the financing of small and medium enterprises,during differentfinancial cycle stage of the small and medium-sized enterprise To choose the most suitablefinancing methods has certain practical significance!The article is based on Wenzhou folkloan status and try, analysis the characteristics of folk loan and according to the characteristicsof the financing of small and medium enterprises choose private loan financing.Through theanalysis,in order to indicate the folk lending in the status of the financing of small andmedium enterprises, during different financial cycle stage of the small and medium-sizedenterprise To choose the most suitable financing methods has certain practical significance。...