The Reason And Solution Of The Small And Middle-sized Enterprise's Financing Puzzledom

Since 1978, the Small and Middle-sized Enterprise of our country has been increasing quickly and have become the important power of our economic reform and development. However, being differ from its contribution, the politics, economy and society environment which the Small and Middle-sized Enterprise needs has not yet been established. Especially, the capital becomes the puzzle and there is still a lack of loan. Owing to that, this text can try to solve the puzzle depending on the credit-assistance of the Small and Middle-sized Enterprise."The Small and Middle-sized Enterprise Promotion-Law in the People's Republic of China"which is executed in January 1, 2003 ordains that the Small and Middle-sized Enterprise is all sorts of small and middle-sized enterprise which is set up in the People's Republic of China by law, which can satisfy the need of society and increase the number of work opportunities. The Small and Middle-sized Enterprise has the prominent position in the economic development in our country. Currently, almost all the loan which the Small and Middle-sized Enterprise needs depends on the investment of bank. However, this sort of loan has short time limit, small quantity and high rate, that influences the development of the Small and Middle-sized Enterprise .There are two reasons for the shortage of the loan. The first reason is rest with the Small and Middle-sized Enterprise: the Small and Middle-sized Enterprise has not good credit condition, do not have good management records and permanent assets, the risk of management is big, the ability of competition is weak, the level of management is low and the consciousness of credit is dim. The second reason is rest with the bank. The...