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Online loan store helps Jiaxing companies obtain financing

chinadaily.com.cn| Updated : Jun 15, 2020

An online loan store launched on the Jiaxing finance and credit information sharing platform last year has helped solve financing difficulties for local small and micro-sized enterprises (SMEs), local media reported on June 10.

"Asymmetric information leads to difficult financing for SMEs," said an employee at the Jiaxing branch of the People's Bank of China (PBOC). Therefore, the bank decided to introduce smart recommendations and push for more precise information on the online store.

Like with online retail markets, financial institutions post their financial products on the store, while SMEs can not only purchase these products, but also publish personalized demands that financial institutions can seek to satisfy.

Jiaxing companies just need to register and authenticate their names before accessing to the online store.

The store currently offers 363 financing products from 42 banks and financial institutions.

"Thanks to the online store, SMEs have more options for financing and we have successfully obtained loans from the Jiaxing branch of the Agricultural Bank of China," said the head of a Jiaxing company.

Jiaxing launched the finance and credit information sharing platform in August last year to serve all parties involved in financing transactions for SMEs. The platform includes registered companies' financial figures, tax data, and credit scores, which helps increase the efficiency of loan approvals.

The platform has served 12,130 companies to date and offers over 55.68 billion yuan ($7.85 billion) in financing.

PBOC's Jiaxing branch plans to issue 1 billion yuan in rediscounts to support local financial institutions and help them offer loans via the platform in an effort to encourage more innovative financial products, according to one employee.