Microfinance companies are limited liability companies or joint stock limited companies established by natural persons, enterprise legal persons and their social organizations that do not absorb public deposits and operate microfinance business. Compared with banks, small loan companies are more convenient and faster, and are suitable for the capital needs of small and medium-sized enterprises and individual industrial and commercial households; Compared with private lending, microfinance is more standardized, and loan interest can be negotiated by both parties.