Optics Valley Technology Financing Guarantee Co, based in the East Lake High-tech Development Zone (also known as Optics Valley of China, or OVC), recently saw its registered capital increase to 1 billion yuan ($157.64 million) from 100 million yuan at the beginning, allowing more small and medium-sized enterprises (SMEs) to enjoy financial support.

Yan Zuohui, chairman of the company, said that most small, medium and micro-sized enterprises are asset-light, lack collateral, and fail to meet the threshold for bank lending, which affects their development and technological innovation. 

According to the company's plan, 80 percent of the guarantee business will be tilted toward technology-based small, medium and micro-sized enterprises.

"With the increase in registered capital, our company can now give out up to 10 billion yuan in loans," said Yan. 

By re-sharing the risks of online financing guarantee projects, the company will further reduce the guarantee service threshold, expand the coverage of the government financing guarantee business, and better exert the magnifying effect of financing guarantees so as to create a good financing environment for medium, small and micro-sized enterprises.

"By building an enterprise credit information system, we collect enterprises' credit information, business behavior, and business data to carry out financing guarantees," Yan added. 

The model reduces both the time and cost of loan financing for enterprises. A single business is charged just 1 percent of the guarantee amount every year, and up to 1 million yuan is exempt from guarantee fees.

The company is currently planning to build a technology guarantee big data platform. According to Zhang Wei, general manager of the company, the platform integrates data on government affairs, enterprise operation, and finance, connects with the credit database of the People's Bank of China, and creates accurate classifications and ratings for clients. 

Through the platform, small, medium and micro-sized enterprises engaged in scientific and technological innovation can complete online applications in just three minutes and review them in one minute, greatly improving the efficiency of financing.

In addition, the company will customize financing guarantee service products and strive to serve more than 10,000 innovative small, medium and micro-sized enterprises in the next three years.