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Help for small firms
By Lu Xiaofeng and Xu Fang |
July 25, 2011, Monday
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Print Edition
Print Edition
THE high frequency that the People's Bank of China has raised the deposit reserve ratio once a month since early this year has driven quite a few small and medium-sized companies into a difficult situation of capital shortage and cash squeezing.
Altogether 115,000 small and medium-sized companies have registered in Jiading District. These companies are also confronted with problems caused by tightening monetary policies this year. Therefore, Jiading District government decided to take various measures to tackle financing difficulties of small and medium-sized companies so that they can have financing channels.
Shanghai Jiading Xianglong Small Loans Co Ltd will be opened in the second half of the year. By that time, Jiading will be home to five small loans companies. By the end of May, four small loans companies that had started business earlier had distributed 793 loans with a total volume of 1.357 billion yuan (US$209.74 million).
Compared with small loans companies, Jiading Minsheng Township Bank has the advantage of issuing more loans with lower interest and is more efficient and speedy in offering loans than common commercial banks.
Since its opening on April 19, the bank has distributed more than 50 loans totaling 450 million yuan to Jiading's small and medium-sized companies.
"The bank can issue loans to qualified companies directly since it is an independent legal entity," said the bank President Ding Minhua.
The bank has a rough plan to set up outlets in places such as Wanda Plaza in Jiangqiao Town and Moyu Road in Anting Town within the year, and the number of outlets are expected to expand to 10 in the district in three years.
Bank for small firms
Zhejiang Tailong Commercial Bank, known as the "bank for small companies," is expected to settle down in Jiading at the end of September. The Tailong bank has a more specific client market, targeting small companies, compared with the Minsheng Township Bank.
Tailong will be located at the intersection of Shugou Road and Chengliu Road, and the bank's construction area will be around 3,500 square meters. As a "grassroots" financial institution, more than 90 percent of Tailong's loanees borrowed loans of no more than 5 million yuan and more than 90 percent of its small company clients got loans without mortgages thanks to a strict risk control system.
Some small and medium-sized companies had to suspend good projects because their loan applications had been refused by banks repeatedly since they did not have enough assets for mortgage. Shanghai Jiading Financing Guarantee Co Ltd, the district's first financing guarantee company, is scheduled to be opened within this month. Such a situation is expected to be improved by that time.
Shanghai Jiading Financing Guarantee Co Ltd is a non-bank financial institution with a registered capital of 100 million yuan and will provide intermediary service including loan guarantee, trade financing guarantee and project financing guarantee.
"We will focus on helping Jiading small and medium-sized companies solve problems of loan guarantee and build a bridge connecting companies and banks," said the company's General Manager Xu Zhangjie.
Jiajie Environmental Engineering Co Ltd managed to find a bank to grant credit line on a salon between SMEs and banks. According to the agreement, the China Merchants Bank will offer 58 million yuan in credit quote to Jiajie.
Altogether 115,000 small and medium-sized companies have registered in Jiading District. These companies are also confronted with problems caused by tightening monetary policies this year. Therefore, Jiading District government decided to take various measures to tackle financing difficulties of small and medium-sized companies so that they can have financing channels.
Shanghai Jiading Xianglong Small Loans Co Ltd will be opened in the second half of the year. By that time, Jiading will be home to five small loans companies. By the end of May, four small loans companies that had started business earlier had distributed 793 loans with a total volume of 1.357 billion yuan (US$209.74 million).
Compared with small loans companies, Jiading Minsheng Township Bank has the advantage of issuing more loans with lower interest and is more efficient and speedy in offering loans than common commercial banks.
Since its opening on April 19, the bank has distributed more than 50 loans totaling 450 million yuan to Jiading's small and medium-sized companies.
"The bank can issue loans to qualified companies directly since it is an independent legal entity," said the bank President Ding Minhua.
The bank has a rough plan to set up outlets in places such as Wanda Plaza in Jiangqiao Town and Moyu Road in Anting Town within the year, and the number of outlets are expected to expand to 10 in the district in three years.
Bank for small firms
Zhejiang Tailong Commercial Bank, known as the "bank for small companies," is expected to settle down in Jiading at the end of September. The Tailong bank has a more specific client market, targeting small companies, compared with the Minsheng Township Bank.
Tailong will be located at the intersection of Shugou Road and Chengliu Road, and the bank's construction area will be around 3,500 square meters. As a "grassroots" financial institution, more than 90 percent of Tailong's loanees borrowed loans of no more than 5 million yuan and more than 90 percent of its small company clients got loans without mortgages thanks to a strict risk control system.
Some small and medium-sized companies had to suspend good projects because their loan applications had been refused by banks repeatedly since they did not have enough assets for mortgage. Shanghai Jiading Financing Guarantee Co Ltd, the district's first financing guarantee company, is scheduled to be opened within this month. Such a situation is expected to be improved by that time.
Shanghai Jiading Financing Guarantee Co Ltd is a non-bank financial institution with a registered capital of 100 million yuan and will provide intermediary service including loan guarantee, trade financing guarantee and project financing guarantee.
"We will focus on helping Jiading small and medium-sized companies solve problems of loan guarantee and build a bridge connecting companies and banks," said the company's General Manager Xu Zhangjie.
Jiajie Environmental Engineering Co Ltd managed to find a bank to grant credit line on a salon between SMEs and banks. According to the agreement, the China Merchants Bank will offer 58 million yuan in credit quote to Jiajie.
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