Feasibility Study On The Formation Of Zhuji City BaFang Small Loan Co.Ltd

October2005, commercial micro finance firms were begun to establish experimentally with the permission of People’s Bank of China in Shanxi, Shaanxi, Sichuan, Guizhou, Inner Mongolia, which were funded by the private rather than the deposits and primarily serving the rural as non-bank institutions. With the supporting of relevant national policies, China’s small loan firms have developed rapidly. However small loan firms are also facing problems like the vague orientation, narrow financing channels, heavy tax burden and competitions from other financial institutions in the complex financial environment. Insisting the orientation and the distinctive competitive strategy become the key solutions in the complex environment with fierce competition. Seeking competitive differentiation, advocacy services brand are the essentials for these firms’survival and development.The author focuses on the domestic development of small loan firms with local economic characteristics, specially the case of Bafang Microfinance Ltd. By analyzing the feasibility of the establishment of Bafang Microfinance Ltd., I set up a model for small loan firms’ development, which also provides reference for others in this industry.