Research On Legal Issues Of Private Financing In Small And Medium-sized Enterprises

Small and medium enterprises are the most active cells in the economic development, which is an important part of the national economy. Whether it is developed or in developing countries, small and medium enterprises are the main force to provide employment, increase tax, promote the stable and rapid development of the national economy, improve the residents’ income. Countries all over the world attach great importance to the development of small and medium enterprises.However, the small and medium-sized enterprises are in the initial stage of development, the shortage of funds is an important factor that restricts the development of small and medium-sized enterprises. Although the state in law and policy to support and guide SMEs, but due to their own conditions and external environment constraints,making it difficult to obtain funds from banks and other formal financial institutions.And private financing because the threshold is low, simple procedures and other factors,more and more favored by small and medium enterprises, and gradually become an important financing form of small and medium enterprises. However, due to the imperfection of laws and regulations and the imperfect supervision, the negative aspects of the small and medium-sized enterprise financing activities are gradually emerging,which seriously interferes with the normal financing order, and is not conducive to the security and stability of China’s private financial markets.This paper, based on the problem of private financing of small and medium sized enterprises, expounds the relevant theories of small and medium sized enterprises and small and medium enterprises. After the comparison of the United States, Germany,Japan and other countries on the legal system of civil financing of small and medium enterprises, in order to improve the legal system of China’s civil financing. At the end of the article, the author puts forward his own suggestion: make the folk financing law,perfect the relevant supporting legislation, establish effective supervision system,establish the risk early warning system for small and medium enterprises, and build the credit guarantee system of small and medium-sized enterprises.