The Cause of Credit Risk in SME and the Countermeasures for Financing Predicament

This paper first introduces the credit demand characteristics of small and medium-sized enterprise. Then it points out that the causes of the formation of small and medium-sized enterprise loan credit risk from three aspects of the government’s supports, the rural financial system is not sound and their own financial system is not standard. Finally, it puts forward new way of financing difficulties of small and medium-sized enterprises.