SMEs in China fall short of focused funding organizations or banks and proper credit arrangement. The country has had for all time a very far above the ground savings rate, and the overall savings deposits are growing fast with the rising economic balance. Even though generally SMEs have attained a definite sum of loans, because of the macro economic steps taken, particularly with the pressure of the Asian financial crisis, the necessities for getting loans turned out to be more firm and the formalities more complex. Nevertheless due to capital limits, their own structural tribulations, and a yet upper ratio of non-performing loans roughly 25 percent, in comparison to state-owned commercial banks, the boost of loans they offer is very small. On the other hand, large incongruities exist in financing for non-state-owned SMEs from different banks and other financial organisations. SMEs, by and large, have bright future. Nonetheless, because of particular enterprise’s flaw in size and confines in staff, information, management and particularly financing, the growth of SMEs in China does not set out efficiently. As a result each year, several SMEs exit ruined and the economic failure of SMEs in a time of 3-5 years is somewhat 50 percent. This implies that it is enormously hard for SMEs in China to continue feasible and look for development in the middle of fierce market competition (Wang, 2004).