Hence, commercial banks are in a better position to get management information, make judgment on risks and price the loans. Therefore, commercial banks can tailor their products for SMEs according to their financing needs at various stages. Meanwhile, commercial banks shall have a long vision to explore the potential of customers and help SMEs quickly transit from starting stage towards mature stage. II.
Appropriately price lending risks with SMEs  Lending rate is actually the price of credit products. The pricing of credit products mainly includes cost of capital and risk premium. The pricing capacity of Chinese financial institutions is generally weak. One reason is that there have been many administrative restrictions where many prices were determined by the government.