Hailing district of Taizhou city in East China's Jiangsu province is promoting the application of the Taixinbao financial funding product to help enterprises resolve their expensive and difficult financing problems.
It involves risk sharing among financial funds, banks and government guarantee companies, which can promote risk sharing for financing small and micro enterprises.
Taizhou Yangfan Vehicle Accessory is an enterprise specializing in the research and development, production, sales and service of brake assemblies. This year, it decided to increase its investment in technological upgrades.
Faced with capital turnover pressure, the company adopted the Taixinbao product, enabling it to obtain 4.5 million yuan ($634,231) in loans from a bank that was exempted from paying guarantee fees.
"Our financing cost should be above 4.5 percent under normal circumstances, but with the help of the Taixinbao product it decreased by 0.5 percentage points, which helped reduce the burden of costs," said Yang Rongfu, chairman of the company.
Additionally, Hailing is implementing the policy of exempting guarantee fees for technology-based enterprises ranked high in intelligent and digital transformation, sci-tech innovation points and others.
Since the first half of the year, the district has waived guarantee fees of 160,000 yuan for five technology-based enterprises that met the conditions, with a total guarantee amount of 40 million yuan.
The factory run by Taizhou Yangfan Vehicle Accessory. [Photo/WeChat account: weihailing0523]