There are various solutions over the years, but the supply chain finance financing mode provides a new way of thinking to break financing difficulties of small and medium enterprises. It has great research and development value and application potential. This paper defines the concept of small and medium enterprises based on the supply chain finance, and explores concept, characteristic and subjects of the supply chain finance, three basic patterns in the process of solving the financing of SME and other issues. It presents the financing situation of SME from direct and indirect financing situation, summarizes special performances of the financing difficulties of SME, and makes an in-depth analysis of causes of the financing difficulties of SME in China from internal and external of enterprises. Finally, it puts forward advantages of supply chain finance in solving the financing difficulties of SME.