Beijing will launch loan renewal services in all 16 districts and the Economic-Technological Development Area by the end of the year, according to an official from the Beijing Municipal Administrative Service Bureau.

File photo: VCG

Being able to renew loans directly with banks or through a government mediator would help businesses to avoid getting bridge loans — high-interest temporary financing to bridge over gaps in cash flow.

To help small businesses overcome this common hurdle, the Beijing Banking and Insurance Regulatory Bureau and the Haidian district government jointly established China's first Enterprise Loan Renewal Center this August in Haidian. Fifteen banking institutions has partnered with the center to handle applications for loan renewal and provide other financing services.

The Enterprise Loan Renewal Center has standardized the required application materials, procedures, and valid periods for approval, therefore significantly reducing the time for small and micro enterprises to secure financing. Businesses are required to submit applications at least one month before loans expire. After 10 working days, the banking institutions will complete all procedures and give responses to the enterprises.

As of Monday, the Beijing Enterprise Loan Renewal Center had received 262 renewal applications for loans totaling 1.69 billion yuan (US$241.4 million). It helped 259 applications to get approved, amounting to 1.62 billion yuan in loan renewals.