Legal Risk Prevention And Control Of Private Financing For SMEs

Small and medium-sized enterprises is an important part of the national economy,is an important force in the development of China’s economic construction. Small andmedium-sized enterprises play an irreplaceable role in solving China’s employment,expanding domestic demand, enhance the economic strength. However, due to thelack of funds, backward management, coupled with its own assets rarely, it is difficultto obtain financing through the formal financial channels.A method of financing of private financing has emerged in recent years as, hasan irreplaceable role in solving the financing difficulty of small and medium-sizedenterprises, which has convenient, fast, no hard and fast rules makes SMEs is verypopular this kind of financing way. However, at present our country of informalfinance regulation law is less, and the conflict between laws and regulations, not onlymakes the small and medium-sized enterprise folk financing when risky, but alsoseriously affected our country’s financial stability and security. So, through theanalysis of the folk financing risk, and then puts forward the legal prevention andcontrol measures have important practical significance. This as a starting point, thispaper analysis of small and medium-sized enterprises and private financing of SMEs,combining with the relevant laws and regulations of folk financing, put forward theconcrete way of small and medium-sized enterprises financing and specific risk. Andthen combined with the specific legal prevention and control experience and all kindsof folk financing in developed country risk, put forward suggestion from legal controllevel. This paper is divided into the following five parts:The first part mainly discusses the reason of small and medium-sized enterprisesand private financing combination, make the foreshadowing for the analysis of folkfinancing risk of small and medium-sized enterprises.The second part mainly introduces the relevant laws and regulations of the smalland medium-sized enterprise financing, shortcomings of existing laws and regulations.Analysis for the third part of the small and medium-sized enterprise financing risk foreshadows.The third part through the analysis of the status of SMEs financing, pointed outthe specific way of small and medium-sized enterprises financing and specific risk.The fourth part proposed legal control to the small and medium-sized enterprisefinancing risk...