On The Legal System Obstacles And Correction Of Financing Of Small And Medium-sized Enterprises In China

In both developed and developing countries,msmes are the main force to solve the employment problem of the vast majority of citizens and to carry out scientific and technological innovation.They are also the important support for the survival and development of large enterprises in all countries,it is also an important contributor to the national finance and tax revenue,Therefore,most countries in the world,especially the developed countries,provide preferential legal system to promote and protect msmes from the aspects of finance,finance,tax and guarantee.However,under the guidance of the idea of "grasping the big and letting the small",and in accordance with the company law,Commercial Bank Law,securities law,tax law,etc.,in essence,it has caused many institutional obstacles to the survival and development of MSMES,especially financing obstacles,making it difficult for MSMES which are in urgent need of financing support at the initial stage of start-up and scientific and technological innovation,in addition to the new crown epidemic serious impact,many small and medium-sized micro enterprises even on the verge of bankruptcy.Because according to the current credit legal system,the assets that msm es can provide to commercial banks for mortgage loans are quite limited,and the banks’credit is insufficient and has not even been establish ed,the legal person.of the organ can not provide loan guarantee for MSMES according to law,and the private lending interest rate,though restricted several times by the judicial interpretation of the Supreme Court,is still too high and nearly kills msmes.Academic research on the financing system obstacles of msmes and their removal is also few.Therefore,by means of comparative analysis and empirical analysis,this paper systematically discusses the obstacles in the financing system of small and medium-sized micro-enterprises in China,analyzes its causes,and puts forward some countermeasures,and then fundamentally solve the financing difficulties and expensive financing problems of msmes,no doubt for the country to improve the relevant legislation,to provide legal system guarantee for msmes to thrive,it is of great theoretical and practical significance to promote the academic circles to do in-depth research in this field.It is necessary to revise the legal system restricting the commercial bank loans to MSMES,and to implement the separation system of examination and loan,the system of determining the loan term according to the project or product construction cycle,and the system of the commercial bank monopoly for MSMES.Accordin g to the current law of our country,comm ercial banks can be divided into four levels:the central level,the provincial level,the regional level and the county level,it is tedious and time-consuming,which seriously affects the efficiency of bank loan.for MSMES.Therefore,it is necessary to implement a scientific separation system of examination and loan.The current system of fiscal year for the majority of loan terms is even more unreasonable because the loan project or the product produced by the enterprise can not be completed in accordance with the growth or turnover of the fiscal year,it is ridiculous to use an executive order to complete the construction cycle or life cycle of a project or product in accordance with the legal financial year! The term of a bank loan shall be determined according to the construction cycle or even the life cycle of a specific project,technology or product,this can avoid micro,small and medium-sized enterprises because of the break in the capital chain and forced to extend their hand to private lending(that is,usury),and then to the road of bankruptcy.In addition,we should also establish a professional banking legal system to help small and medium-sized and micro-enterprises with counterpart assistance in financing.Amend the "Civil Code" of the organ legal person guarantee limit,clear organ legal person conditional for sm all and m edium-sized enterprises to provide financing guarantee.In the early 10 years of reform and opening up,our country’s law did not restrict organ legal person guarantee.Later,due to excessive and excessive organ legal person guarantee,it caused unnecessary loss of state property,the law of the P eople’s Republic of China on guarantee issued in 1995 explicitly prohibited government agencies from providing loan guarantee for any enterprise,article 683 of the 2019 Civil Code still applies the above-mentioned provisions.As a matter of fact,it is an obligation for legal persons of government organs to provide financing guarantee for msmes,which does not necessarily lead to loss or damage of state assets.The government,like the legal system,should have an obligation to protect the interests of vulnerable groups,and the majority of government revenue comes from the taxation of msmes,governments that levy taxes on MSMES should be obliged to provide them with a variety of services,including financing guarantee services.As long as the various legal systems for bank loans are scientifically and reasonably designed and government agencies do all the necessary work in the early stage of financing guarantee,the financing guarantee will not necessarily lead to the risk of the loss of state assets,the World Bank’s lending system and the reality of lending are evidence of this,as are the financing guarantees granted to msmes by government agencies in some developed countries,including the United States.Formulate a reasonable private lending legal system,stipulate that private lending must be self owned funds,and the lending interest rate shall not be higher than the lending interest rate system of commercial banks in the same period,and resolutely and severely punish usury lending.The reason why there are a large number of private lending in China,and there are many civil disputes and criminal cases,is that there are serious problems in the formal commercial bank loan system,forcing small,medium-sized and micro enterp rises and some citizens to "cross the bridge" with private lending due to the rupture of the capital chain.In addition,the interest rate of private lending is abnormally high,which makes the borrower unable to repay usury,resulting in many kinds of disputes.Most of the funds of private lending come from commercial banks or illegal fund-raising.If the law clearly prohibits the above-mentioned sources of private lending and requires them to lend with their own funds,and stipulates that the upper limit of the loan interest rate is not higher than the loan interest rate of commercial banks in the same period,the disputes in this regard will be greatly reduced and the lenders of small,medium-sized and micro enterprises will not go bankrupt.Because the national law stipulates the loan interest rate system applicable to large,medium and small enterprises,large enterprises can only bear such a high interest rate,and small,medium and micro enterprises are unlikely to bear much higher or even four times the interest rate than commercial bank loans.The fact of pri vate lending market in recent years has fully proved this.The choice before us is either to abolish usury,scientifically regulate the lending legal system of commercial banks,and let commercial banks focus on the implementation of deposit and loan busin ess;Either private lending is allowed,but it must be low interest lending with its own funds to help small,medium-sized and micro enterprises "cross the bridge",rather than strangle small,medium-sized and micro enterp rises.According to China’s current deposit and loan legal system,if the lender of private lending has its own funds,its lending interest is not only higher than that of commercial banks,but also higher than the profits of general production and operation enterprises.Improve the internal governance mechanism of MSMES,improve the immunity of msmes,so that commercial banks can safely issue loans to MSMES.Small and medium-sized micro-enterprises,although small,but the production and management,market competition,internal management,and various risks are the same as large enterprises.As the saying goes,"although the sparrow is small,all five internal organs",if the lack of which the internal organs,the sparrow will die.Therefore,we should improve the internal governance mechanism of small and medium-sized micro-enterprises according to the sam e specifications as large enterprises,to perfect the internal systems of the Articles of association,the Personnel Management System,the accounting system,the marketing system,the scientific and technological innovation system,the technical training system,the reward and punishment system and the compliance system of the MSMES,upgrading the credit rating of msmes,so as to improve the small and medium-sized micro-enterprises anti-risk ability.As long as the internal governance mechanism of msmes is reasonable and no fatal problems occur,MSMES can thrive and commercial banks are willing to lend money to MSMES.