A small loan company is a limited liability company or a joint stock company approved by the competent authority, invested by individuals, corporate legal persons and other social organizations, not absorbing public deposits, and operating small loan businesses. In 2008, according to national policies, our province launched the pilot work of 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 interventions on them should be reduced, and market-oriented means should mainly be used for behavior constraints. The focus of supervision lies in preventing illegal fundraising, usury, violent debt collection and other behaviors that cause social risks. In terms of innovative patterns of supervisory work, a "multi-in-one" three-dimensional supervision model should be adopted, namely government regulatory authorities' supervision, industry self-discipline, cooperative banks assisting supervision, introducing intermediary agencies for supervision, social supervision, informatization supervision, etc. In terms of operation models, small loan companies should be guided to reduce operating costs and increase operating benefits based on their own operating characteristics. The operation models of small loan companies include street models, supply chain models, trade models, agricultural models, chamber of commerce models, etc. The street model is where small loan companies are located in streets with more individual industrial and commercial households, and customers near the streets are the main service objects. The supply chain model is to provide loan services to downstream suppliers of major shareholders of small loan companies. The trade model is where small loan companies mainly serve stall owners in trade markets. The agricultural model is where small loan companies are set up in counties and provide credit services to planting households and breeding households in rural areas. The Chamber of Commerce model is where part of the Chamber of Commerce members invest in setting up small loan companies, which mainly serve member units. Problems existing in the development of small loan companies and policy recommendations. The pilot work of small loan companies has just been three years, and there are still some policy obstacles in the development of the industry. First is the nature of small loan companies. At present, small loan companies are not defined as financial institutions, but as industrial and commercial enterprises, which brings many difficulties to small loan companies in subsequent capital replenishment, mortgage registration, tax and fee reduction. Second is the subsequent capital replenishment problem. In view of the above problems, the following policy recommendations are put forward: 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 comparable to those involving rural financial institutions. This article comes from Xunrong Network http://www.xunro.com, please indicate the source when reprinting!