There are many reasons for the financing difficulties of SMEs. First, the SMEs’ small scale, nonstandard management, the unsound finance system and low credit level are the internal factors. Second, the financial institution squeeze the loan, the imperfect credit guarantee system, the unsound capital markets, incomplete law system and the weak of government support are the external factors. Third, the unreasonable financing structure of the SMEs aggravates the financing difficulties. So the SMEs should increase the level of credit and financial system, and decrease the asymmetric information between SMEs and their investors. The financial institutions should establish a new bank-enterprise relation and improve the efficiency of the allocation of funds. The government should develop the capital market, to make SMEs equity financing more efficiently and easily, improve the financing environment for SMEs to perfect their financing structure and alleviate the financing difficulties.