The Study of Financial Innovation to Overcome Financing Difficulties of SMEs

SMEs are an important force in the national economy, which have broad, development prospects. During the financial crisis, due to a single channel of financing of SMEs, a lack of collateral, a lack of a bridge of communication between banks and enterprises, and financing gaps of SMES are prevalent. This article maintains that financial innovation is an effective way to solve this problem. Under the guidance of the Government, financial innovation should be in the way of financial services, financial mechanisms, financial markets and other aspects of effective financial innovation activities.