Small and medium-sized enterprises may hide some important information from banks.

Second, market risk.

Small and medium-sized enterprises are relatively small in scale, low in popularity, insufficient in strength, low in financial management level, weak in competitiveness and poor in risk resistance.

Third, credit risk.

Most small and medium-sized enterprises have imperfect guarantee mechanism, weak credit and legal concepts and low credit reliability.

Four. operational risk

Most small and medium-sized enterprises lack perfect corporate governance structure, serious short-term behavior, and lack core competitiveness or characteristic management.

Verb (abbreviation for verb) moral hazard

The financial management system of most small and medium-sized enterprises is not standardized, and the financial statements are distorted from time to time.

In order to minimize the loan risk of small and medium-sized enterprises, small and medium-sized enterprises should strengthen their own construction, constantly enhance their strength and improve their credit. Banks should also constantly strive to expand the credit business of SMEs and establish an effective management system. The state has also actively established and improved the legal system and created a good credit environment.