Chinese small and medium-sized enterprises (SMEs) face financial difficulties due to imperfect financial systems. Commercial banks in China struggle to provide effective funding to SMEs. To address this, new credit risk assessment mechanisms are needed. The study analyzes the credit status of Chinese commercial banks and proposes a parameter selection method that considers both financial and non-financial factors. The research compares three models and focuses on the credit rating system of Agricultural Bank of China, offering innovative services for SMEs.