Songyuan City Petty Loan Company’s Development Situation And Countermeasure Research

With the increasing speed of economic development in China, the scope andstrength of China’s financial reform and innovation continues to enhance. Todevelop "three rural", to solve the problem of "financial repression" in the ruraleconomic development, and to achieve the overall objective ofa comprehensive common prosperity, China learns from the advancedinternational micro-credit mode and their fully-fledged developingexperience, and launches a large-scale of small loan companies as tests in thenational wide. Under this environmental, small loan companies have set up since2009in Songyuan. Their development speed continues to accelerate, and theoverall size continues to expand. They have played an important role to transferprivate capital, to guide unused private capital to carry on reasonable financialactivities, to ease financing problem of SMEs and “three rural".This paper is based on the development status of small loans companies inSongyuan, uses theoretical research results of domestic and overseas small loancompanies as a guide, and learns form the successful small loan companies’developing model. This paper deeply analysis problems in the process of smallloan companies’ development in Songyuan, dig reasons to causeinternal and external problems, and on this basis proposes specific strategiesand recommendations to achieve healthy, stable and rapid development forSongyuan small loan companies’ future. This paper is composed of fiveparts: the first part is the introduction, which focuses on the background and valueof this paper, also includes domestic and overseas research status, institution who write this paper, research methods, innovation and deficiencies. The second partdescribes developing status of small loan companies in Songyuan, and deeplyanalysis main development problems. The third part makes a comprehensiveanalysis of internal and external factors to constraint small loan companies’development. The forth part proposes feasible suggestions on how to make betteruse of small loan companies. The fifth part is theconclusion and outlook on the future of small loan companies in Songyuan.