An Analysis On Law Issues Of Surety In Private Lending

China’s private lending has always been an important economic phenomenon in society. In the background of the sluggish economy, enterprises are confronted with the shortage of funds and difficulties in financing, the rapid development of private lending have been expanding recently. Surety is the most common way of guaranty activities in the private lending. Surety is important to the establishment of private lending and debt repayment. It promotes the development of private lending to some extent. But in the process of development of private lending,the problems and defects of surety have been exposed.This paper studies and comments on some problems related to surety private lending and puts forward appropriate suggestions of legal countermeasures. It aims to regulate the behavior of surety in private lending in assurance, reduce risk and disputes caused by private lending, promote the healthy development of private finance.This paper consists of three parts:The first part:current situation and effect of surety in private lending. This paper analyzes the current situation of private lending and surety in private lending. Total funds of private lending is growing rapidly and the use of private lending has changed. The percentage of the number of cases involving surety in private lending disputes is a quarter. The principal part of suretyship are more complicated. The effect of surety in private lending include mainly three aspects:the effect of surety on the establishment of private lending and debt settlement, the impact of suretyship to the loans and interest rates.The second part:the current problem of surety in private lending. The issues of surety include four aspects:surety, suretyship, suretyship contracts and Lawsuits. The problems of suretyship and suretyship contracts are focal points in this paper.The third part:countermeasures of solving the problems of surety in private lending. Firstly, this paper puts forward to define the qualification and litigation status of surety, and correctly distinguish between the suretyship and the middleman. Secondly, the author gives suggestions of perfecting the surety contract and establishing suretyship contract notary system. Thirdly, the author issues suggestion about establishing professional Guarantee Corporation system. Finally, the author gives suggestions of promoting new types of guarantees.