Continual Improvement of Small and Medium Enterprises Credit Structure in Inclusive Financial System

In order to solve the financial difficulties of small and medium enterprises (SMEs) in China, the credit structures which can satisfy the demand of commercial loans are discussed in this paper. By analyzing production function, it is understandable for the basic driving force of SMEs for sustainable development and the nature of sustainable demand of funds. Take mutual guarantee loans as examples to show how the risk of joint liability loan can be affected by credit structure optimization in solving financial problem of SMEs. Empirical demonstrations show that optimized credit structure of joint liability loan can probably be a significant form for SMEs finance based on inclusive financial system and it is of importance on promoting in China.