Research On Sustainable Development Of Small Loan Companies In Zhejiang

In 2008,the government started promoting the small loan company pilot in the country.However,due to the different economic and social environment of each province,the support and regulatory policies to small loan companies have different focus,therefore,the development of small loan companies also showed different characteristics.As a developed province of private economy,Zhejiang have active private funds,at the same time,most of the private enterprises,especially small and micro enterprises and the "three rural" development generally facing the "financing difficulties".The small loan companies provide good services for the development of small and micro enterprises and the "three rural" in our province,and partly solved the above-mentioned difficulties in small and micro enterprises.Owing to the effective support policies and supervise from government,the development of small loan companies in Zhejiang is at the forefront in china both in quantity and quality.But in recent years,the development of the private economy in Zhejiang has slowed down,and the business risk is increasing,this brings great impact to the asset quality of small loan companies.What’s more,along with the continuous financial reform and innovation,the financial freedom is constantly promoting,so the small loan companies are facing a lot of difficulties and uncertainties in their sustainable development in this background.With more than 8 years pilot work,what about the operating conditions of small loan companies in Zhejiang?Where is the future development direction for them?To solve these problems,this paper select Huzhou city as the object of study,which earlier to carry out the pilot work in Zhejiang,and has an economic development level close to the provincial average.Taking the small loan companies in Huzhou city as samples,this paper did an analysis on the companies’ operating conditions and existing problems from their loan consumers,interest rate and asset quality.At the same time,some successful business models of small loan at home and abroad were comparatively analyzed from their business scope,customer choice,business process,interest rate and risk control,etc.On this basis,this paper offered some suggestions on the sustainable development of small loan companies in Zhejiang province combined with the actual situations.