On The Sustainable Development Of Micro-credit Companies In Zhejiang Province

Since the reform and opening up, China’s economy began to take off, but the "Farmers, Rural Areas, Agriculture Production" issues are still a hot topic in current society. With the deepening of financial reform in rural areas, the rural financial system innovation emerges in an endless stream. Especially since entering the new century, the "difficult to loan" has become the bottleneck of the development of "Farmers, Rural Areas, Agriculture Production" under the background of rural finance, not only makes the stock reform and innovation deeply, but also incremental reform is in full swing. On the other hand, since the15th Party Congress, China’s rapid development of small and medium enterprises which cover various fields of the national economy, is the basic force in China’s economic development, they are "pillars" of Zhejiang economy. But under the comprehensive effect of the financial crisis, the appreciation of the RMB, the new labor law, the implementation of monetary tightening macroeconomic regulation and control of other factors, medium-sized and small enterprises are facing to the most serious challenge in recent years. The main reason of resulting to medium-sized and small enterprises into trouble is still the financing problem.As capital needs of farmers, medium-sized and small enterprises are not met, they turned to private lending. Therefore, how to control the private financial market, standardize the operation, and serve better for the "Farmers, Rural Areas, Agriculture Production", the medium-sized and small enterprises is a problem placed in front of the whole society. The petty loan company is the newly emerging things generated along with China’s financial reform and financial system innovation, it is to make up the existing financial institutions credit deficiencies, mobilize civil idle funds, guide the private capital legally to carry out financial activities and increase financial supply, which plays an important role in alleviating the rural and medium-sized and small enterprises financing difficulties.Although the small loan company develops smooth generally, it exists "growing pains", such as the relevant system not complete, no preferential policies related to financial institutions; capital scale is limited, no sufficient follow-up funds; management risk is greater; high cost of competitive opportunities; a series of problems to strengthen internal management. So, how to study the petty loan company to sustainable development, to promote the integrity of the financial system, is significant for sustainable development and the economy as a whole.In this paper, through the analysis of the YK micro-credit company’s case, discusses the method to solve the existing problems of micro finance industry in Zhejiang Province. As the industry is still in the stage of trial operation, how to make the sustainable development of small loan companies in Zhejiang Province, also requires practice of long-term, need government, society and company efforts.