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Shanghai lends more to small business

Updated: Aug 23,2014 6:15 PM

Shanghai has decided to improve funding systems and the process to allow small businesses easier access to loans.

Xing Yongfeng owns a travel agency. In the past ten years, he has seen his company go from two people to more than one hundred. But he can hardly imagine having this increased business, if it wasn’t for the loan he was granted six months ago.

“We went through a funding crisis last year. But the local government offered to guarantee our company after they reviewed our previous performance. The loan from the bank helped us through the worst period,” Xing Yongfeng, head of Quyou Travel Agency, said.

Xing’s travel agency is now exploring international routes. He’s also hoping to see more talents joining him. To provide better service to micro enterprises such as these, some banks have also combined services with mobile devices. A door to door service will help micro and small companies, saving lots of waiting time and approvals.

“The door-to-door service is one of many services we provide to these micro and small businesses. We have close relationships with the local neighborhood offices. They know these businesses well and they provide us with more information that helps us provide loans to small companies,” Li Li, head of Waitan Sub Branch, CMBC, said.

Shanghai has introduced measures to encourage lending to small businesses. The city will strengthen the city’s credit guarantee system to reduce funding obstacles faced by small and micro firms and build an information sharing system to increase transparency between financial institutions and enterprises.

By the end of last year, and there are about 370,000 small and micro enterprises in Shanghai, and it provide 54 percent of the city jobs, the companies are providing an important role and promoting the city economic development.