Private lending in China has survived with a long history as one of the traditional loans. However, being enslaved to many factors, the system of private lending has not been well-normed. In 2011, the crisis of credit of private lending eventually broke out in several provinces, such as in Zhenjiang, Jiangsu and Fujian, which featured the escape of debtors and bankruptcy of small and medium-sized enterprises, and caused huge impacts on the economic development and social stability. Both the central and local governments, in order to solve the crisis, took various measures to control and stabilize the damages and loss. The crisis undeniably alarms that the deeper dilemma of the financial system reform and the flaws in development management of small and medium-scaled enterprises. This paper aims to contribute some enlightenment and suggestions to deal with the crisis through reflecting and profound consideration upon this crisis. <<