Research On Private Caital Lending Problems Of SMEs

Since reform and open policy, our country economic grows rapidly, especially Nongovernmental Enterprises more show a thriving vitality. China’s small and medium-sized enterprises in promoting scientific and technological progress, economic growth, increasing employment, expanding international trade, etc., plays an important role in the development of the national economy.With the development of economy, it is difficult for the majority of small and medium-sized enterprise (smes) in scale and financial institutional constraints to get financial support from a regular stock, bond market, facing the financing difficult problem. The shortage of funds become the bottleneck restricting the development of smes. Private lending provides financial support to smes,which plays a positive role in alleviating the financing difficult problem, and makes up the defects of the formal financial institutions.With the scale of folk capital in China grown,by lack of normative management mode and strict legal system constraints,and mainly relying on moral and credit and been free from the formal financial system for a long time, folk financial were easy to produce moral risk. Especially since2011, due to slower China’s economic growth, coupled with the influence of monetary policy and the international financial and economic situation, the money supply more nervously. In some private capital borrowing active area, the capital chain rupture phenomenon appeared. Some smes fail due to unable to repay loans or even months interest, even business owners defaulted Sincereform and open policy, our country economic grows rapidly, especially Nongovernmental Enterprises more show a thriving vitality. China’s small and medium-sized enterprises in promoting scientific and technological progress, economic growth, increasing employment, expanding international trade, etc., plays an important role in the development of the national economy. Andso on and so forth, private lending market crisis erupted.Paper chooses smes in-depth study of private capital lending problems, through the analysis of the status and characteristics of private lending, the current existing problems in China in recent years,and then puts forward the Suggestions to solve the problem. Hope to explore a certain degree of this research to slove the problem of folk loan capital of smes in China.