【正文】 Republic of China Township Enterprise Law, which also stipulates that the state to use the credit means, to encourage and support the development of township and village enterprises: people39。s SME business management and technical levels are relatively low, a lack of effective internal supervision and control mechanisms, such a result is caused by inefficient use of funds, the risk is relatively large. Thus, banks and other financial institutions and development of SME business confidence is low, so it will not easily borrow funds to SMEs. (B) from banks and other financial institutions operating principles to consider Banks and other financial institutions pay attention to fund the operation of efficiency, safety, liquidity, in practice, banks and other financial institutions to give customers a prerequisite for the loan is to ask customers to provide effective guarantees for SMEs with limited selffinancing due to unable to provide effective security, while for SMEs operating risks, the third person in normal circumstances would not provide guarantees for the debt of small and medium enterprises. Since it is impossible to provide full and effective guarantees, banks and other financial institutions will not give loans to small and medium enterprises. (C) from the country39。s assets and liabilities, but also affected the internal management, business performance, sustainable development and value growth. A typical decisionmaking including the sale of what kind of financing of debt and equity (financing), how to determine which they want to sell the value of debt and equity (financing costs), when to sell more debt and equity (financing opportunities) and so on. Which include the financing of the size of the most important decisionmaking and financing decisions. Financing scale enterprises should be the purpose of pleting the minimum requirements for the use of funds. The financing of enterprises are diverse, mon the following: 1. Fiscal financing. Financial financing from a financial point of view out, can be divided into: budget allocation, financial loans, through authorized agencies of the stateowned assets investments, policyoriented bank loans, special construction of extrabudgetary funds, financial subsidies. 2. Bank financing. From the Chinesefunded financial point of view that is out of the use of bank funds, the main sections of various generation, such as: credit, mortgage loans, secured loan, discounted loans, lease financing, securities investment. 3. Commercial financing. Its the way they are varied, mainly including trade transaction process that took place between enterprises on credit products, prepaid loans and other forms. 4. G voucher financing. The method includes tendering, financing and bond financing two major categories. (B) the financing decisionmaking process Corporate financing decisionmaking process to develop, that is to determine the optimal capital structure process. The specific decisionmaking process is: First, when a sum of money to finance panies faced several financing options, panies can calculate the various financing options respectively, the weighted average cost of capital rate, and then select one of the lowest weighted average cost of capital as a. Secondly, selected the lowest weighted average cost of capital is just the kind of financing options best Zhuzhong program does not mean that it has bee the best capital structure, this time, enterprises should observe the investors in the loan payment request, the stock market price fluctuations, etc., according to financial analysis to determine the reasonable capital structure, while corporate finance officers can use some of the financial analysis of capital structure, access more detailed analysis. Finally, according to results of the analysis in the corporate financing decisionmaking to further improve its capital structure. (C) the general idea of the Financing of SMEs SME finance general idea should be: a bination of investment and finance in order to finance investmentdriven. Financial decisionmaking in small and medium enterprises do not have the financial decisionmaking as big business (especially stock pany), as the independence, it should be a part of business investment decisions, financing must be direct investment services. This means that the SMEs in the decisionmaking must pass in order to lead to investment decisionmaking in this part of the financial management objectives, rather than as stock companies, finance decisionmaking and financial objectives to establish a direct functional relationship. This is because: 1. SME financial goal is to maximize p