A small loan company is a limited liability company or joint-stock company, which is approved by the competent authority and invested by individuals, corporate legal persons and other social organizations. It does not absorb public deposits and operates small loan business. In 2008, in accordance with national policies, our province carried out pilot projects for small loan companies. Small loans have officially entered people's lives. In terms of financing supervision concepts, non-prudent supervision concepts should be implemented. As financial institutions that do not absorb public deposits, administrative intervention on them should be reduced, and market-oriented means should be mainly used to constrain behavior. The focus of supervision lies in preventing illegal fundraising, usury, violent debt collection and other behaviors that cause social risks. In terms of innovation in the mode of regulatory work, a "multi-in-one" three-dimensional regulatory model should be adopted, namely government department supervision, industry self-discipline, cooperative bank assistance supervision, introduction of intermediary agency supervision, social supervision, informatization supervision, etc. In terms of operation model, small loan companies should be guided to reduce operating costs and increase operating benefits according to their own operating characteristics. The operation model of small loan companies includes street model, supply chain model, trade model, agricultural model, chamber model, etc. The street model is that small loan companies are located in streets with more individual businesses, and customers near the streets are the main service objects. The supply chain model provides loan services to downstream suppliers of major shareholders of small loan companies. The trade model mainly provides services for stall owners in trade markets. The agricultural model is that small loan companies located in counties provide credit services for planting households and breeding households in rural areas. The Chamber of Commerce model is that part of the members of the Chamber of Commerce contribute to establish a small loan company, which mainly serves member units. Problems existing in the development of small loan companies and policy recommendations: the pilot project of small loan companies has only been three years, and there are still some policy obstacles in the development of the industry. First is the nature of small loan companies. Currently, small loan companies are not defined as financial institutions, but as industrial and commercial enterprises, which brings a lot of difficulties to small loan companies in subsequent capital replenishment, mortgage registration, tax and fee reduction. Second is the problem of subsequent capital replenishment. In view of the above problems, the following policy recommendations are made: the proportion limit of small loan companies' financing from banks should be relaxed, and banking institutions can increase the loan proportion to 200% according to the risk status of small loan companies. The state should give small loan companies tax preferential policies similar to those of rural financial institutions. This article is from Xunrong Network http://www.xunro.com, please indicate the source when reprinting!