Studies On The Risk Of Small-loan Companies And Corresponding Precautions

China's small loan companies,although the history is not long,but its development speed is very fast.Especially in recent years,the commercial nature of the small loan company gathered a large number of civil idle funds,help the development of the rural economy to a certain extent,and promote the rapid development of market economy in small and medium sized enterprises.Through the small loan company loan has become one of the important financing channels in the market economy.The fundamental characteristics of the micro credit loan is not only to survive in the nature is different from the commercial bank,China promulgated the "on the small loan company pilot guidance" although standardized to a certain extent,the development of small loan companies,but the quasi financial institutions position ten points which is restricted in embarrassment get the support of national policy and legal norms.Therefore,there are many legal risks of small loan companies,such as the establishment of limited capacity,limited loan interest rates,the borrower's default rate is high.These legal risks led to the small loan company loan amount,channels and other restrictions,affecting the stability and sustainable development of small loan companies.According to the legal risks of small loan companies and the consequences,in-depth analysis of the causes of the legal risk,and puts forward the measures to correct the legal position,strengthen legal supervision,the establishment of legal risk prevention mechanism to prevent and solve the legal risks.The originality is to reveal the risk of a relatively new financial products encountered in the market economy from the angle of law,put forward the corresponding measures from the legal level,I hope this article will help to promote small loan companies on standardized management in the future for good development.This paper is divided into the following parts: the first part introduces the nature,characteristics and development status of small loan companies,the legal risk and management of small loan companies to raise legal risks;the second part through the analysis of small loan companies to find loopholes,legal risk source,and then influence the legal risk of the company's development;the third part is based on the analysis of the legal risk of the causes,countermeasures and suggestions of legal risk prevention demonstration,promote the improvement and development of microfinance companies gradually.