SMEs have a huge giving in China’s economic development, nevertheless, the financing quandary at present faced by SMEs makes up a big blockage for their development. Banks are unenthusiastic to finance to them, for the most part because of the dearth of security and their underprivileged means in pricing risk. This is the raison d’être why credit certification organizations play a foremost role in SME financing and the precision of the credit guarantee scheme is imperative for upholding their access to credit(Wang, 2004). Ever since reform and liberalisation of Chinese economy, the market-oriented reform of the financial system of the economy has slowly but surely brought about labor and capital markets, which have upheld a crude amalgamation of rich labor resources and more and more extended funds resources. The growth of SMEs, particularly the pointed go up in non-state owned and non-public-owned enterprises, has offered a huge freedom and enduring medium for this sort of recipe. Even though the general dimension of the state-owned economy is yet rising in relation to the quantity of enterprises and developmental likely, non-state-owned SMEs have developed into a foremost division of the economy in China and played a more and more vital role in the development of economy and society (Wang, 2004). In the present day, SMEs are getting sturdier and maintain to give to the social and economic development of the economy. Obviously SMEs in China put forth the identical role as SMEs in other countries, which is primarily articulated through advancing employment, technical novelty, instruction of entrepreneurs, building up global economic dealings, speeding up market competition, keeping up economic vitality etc. however, what we come to exclusive for SMEs in China is that, SMEs have wide-ranging effect on the transition of economic and social formation in China. For case in point, the enlargement of non-public-owned SMEs not just transforming the enterprise rights composition, but as well lays an essential groundwork in the progression of building up market economy in China. SMEs in developing country find themselves in handicap position when it comes to uncomplicated access to financial services, particularly when it comes to comparing SMES access to financing in developed countries. One of the major hurdles of fostering SMEs in such country and particularly in China is deficiency of financing in developing countries, where if financing is accessed adequately and conveniently, it will play foremost role in expanding growth of the economy, create large scale employment and reduce poverty in these countries (World Bank Report, 2008).