Hailing district in Taizhou city, East China's Jiangsu province, has been promoting an innovative credit financing model that relieves financial pressure on local companies.
To be specific, banks will only take the business's government procurement integrity assessment and credit review into consideration before directly issuing an unsecured loan to a supplier that has applied for the loan.
For companies, this model has greatly alleviated the financing difficulties caused by factors such as scale, personnel, and cash flow.
"It only took three working days from the start of the approval process to the final disbursement, thus ensuring timely payments for raw material procurement and various research and development expenses," said Wang Xin, chief financial officer of Yicheng Environmental Technology.
"The model is great for companies as its credit limit is about 20 percent higher than that of a regular loan, and the interest rate is about 2 percentage points lower than that of a regular loan," Wang added.
As of the end of August, Hailing district has completed six loans that utilize this model, with a combined loan amount of 18.55 million yuan ($2.54 million).
An exterior view of Yicheng Environmental Technology. [Photo/article.xuexi.cn]