Financing Research Under The Private Financing Legalization Background For SMEs In Weifang

Small and medium-sized enterprises take a larger and larger part in the social and economic development. So as the small and medium-sized enterprises in Weifang. However, capital raising difficulty has always been the main problem in Weifang’s small and medium-sized enterprises development. As the legal status of non-governmental financing has always been controversial, the government of Shandong province, the municipal Party committee and government of Weifang have published a lot of policies and regulations on non-government financing since October,2013 to guide and regulate its development.This paper gives the primary problems that the small and medium-sized enterprises face by studying the actual development process of them. They are poor management, low running transparency, and lack of credit and low status of these enterprises. At present stage,the financing channel of the small and medium-sized enterprise in Weifang such as bank loans, folk finance, stocks and bonds have different degrees of constraint.According to the questionnaire called Small and Medium-sized Enterprises Financing Situation made by Shenzhen branch, People’s Bank of China, another questionnaire has been made based on the need of this research and the development fact of small and medium-sized enterprises in Weifang. The survey shows five aspects. A. The main financing methods are bank lending, private lending and flotation of an issue. B. Lack of collateral, lack of proper guarantor, complicated procedures and financial constraint of banks are the main reasons of difficult bank lending, with lack of collateral the biggest one. C. Uncertainty of legal status, high rate, high risk and instability are the main problems that non-government financing are facing with. D. High requirements of going public, long time span, fierce competition, and high cost of information disclosure, business secret keeping, share sale and decentralization are the main elements constraining the flotation of an issue. E. The non-government financing is the best financing way for the small and medium-sized enterprises in Weifang.With the study of some of the more mature non-government financing modes suitable for small and medium-sized enterprises at home and abroad,this paper has been trying to give the suitable combined with situation of weifang for small and medium-sized enterprises in Weifang.They are centralized management, professional management, government and non-government cooperation. Furthermore, this paper, with the legalization of non-government financing, gives some pieces of advice on how to make full use of non-government financing from the angles of government, enterprises and non-government financing agencies.