Since thirty years of reform and opening up in China, the number and size of small and medium-sized enterprises (SMEs) to achieve leapfrog development, it’s an important part of China's social economy and has great contribution to the economic development of China. However, in recent years the development of small and mediumsized enterprises are also facing many constraints, especially the financing problem of SMEs is an important obstacle to the healthy and rapid development of SMEs, in formal finance can not effectively solve this difficult situation, this is a good positive role to solve the private lending flexible lending to small and medium-sized enterprises financing dilemma. In the study of private lending to solve the plight of small and medium enterprises beneficial effects at the same time, we must also pay attention to the adverse effects of the small and medium-sized enterprise, put forward reasonable suggestions of private lending market norms, help small and medium-sized enterprises of comprehensive and rapid development.