The Financing Model Research Of The Small And Medium-sized Enterprises Of China In The Perspective Of Private Lending

Since the reform and opening, small and medium-sized enterprises have beenplaying an important role in China’s economic development. Small and medium-sizedenterprise also plays an irreplaceable role in the national economic growth and socialdevelopment,especially in today’s rapid economic development. However, thefinancing is a big obstacle to the development of small and medium-sized enterprises.The factors causing financing difficulties are various, except the low quality of thesmall and medium-sized enterprise itself, low credit quality, the lack of support fromthe government and banks or other financial institutions, there is also a bigrelationship of the small and medium-sized enterprise financing mode, also there aremany factors affecting the financing mode. At the same time folk lending is a hugesource of fund to small and medium-sized enterprises development and plays animportant role. So this paper researches the financing mode based on the privatelending of small and medium-sized enterprises.This article aims to explore the relationship between the financing mode of smalland medium enterprises and private lending. Firstly, it analyses the relationship anddifference between the financing mode of small and medium enterprises and privatelending.Secondly,it argues the positive and negative influence that private lendingmakes to small and medium enterprises.At last,it constructs a financing model in theperspective of private lending.It can improve the financing of small and mediumenterprises and improve the financing environment also make a reference to thedevelopment of small and medium enterprises.This paper researches the main idea of:1.The small and medium-sized enterprises plays an important role in China’s economic development,but their development speed and lending scale that can getfrom normal lending is relatively low.It is very imbalance between normal lendingand private lending which lends to serious financing problem.One important factorcausing the financing problem is financing constraints of normal lending.2.There are its own advantages of private lending,it has high flexibility.It notonly has a strong competitive relationship but also has a certain complementaryrelationship between the private lending.It can improve the deficiency of theconstraint of regular lending and makes up for credit gap of normal lending marketand it provides a huge source of capital and promotes their development.3.There are serious shortages of the financing mode of the small andmedium-sized enterprises at present.Although there are many advantages of theprivate lending,also there are serious shortages.So it can provide a reference tofinancing model,more important is to construct a perfect financing mode relativelyconsidering all kinds of financing mode.4.In the condition of constructing a decision model in private lending financingmode,the small and medium-sized enterprises need to make a effective and optimizedselection to the decision model according to their own development.Also they mustmake risk strategy according to financing decision model to use the model effectivelyand reasonably.