Suggestions on Solving Fund Shortage Problems for Petty Loan Companies

The establishment of petty loan companies has provided an effective way in promoting the transformation of private funds into financial capital,supplymenting the formal financial system effectively,improving rural financial services and solving the problems for financing SMEs.However,most of the petty loan companies are confronted with the problem that the follow-up source of operation funds can not be sustained after they conduct lending business in a few months.An analysis on the cash-strapped performance of petty loan companies suggests that financing channels should be broadened,internal risks should be controlled,and governmental support for the petty loan industry should be intensified so as to solve the fund shortage problems for petty loan companies.