Entrepreneurs in Beijing can get loans more easily and renew them more quickly thanks to the establishment of a lending renewal center in the capital's Haidian district in mid-August.
File photo: VCG
It is the first such center in China for small and micro-sized enterprises. Companies can submit materials to renew a loan a month before it expires.
No more than 14 kinds of application materials are required when seeking a loan, and banks will give feedback to businesses applying for loans within 10 days.
The center had received 78 applications by Oct 15, which local authorities said had led to the provision of 558.2 million yuan ($78.9 million) in loans.
Bai Ping, CEO of Beijing Huaqing Energy Science and Technology, a software development startup, is one of the beneficiaries of the new center.
She had been renewing loans since starting the company in 2012 due to the financial status of her clients.
"But the process of reapplying for loans could be long, since the bank needed to check the status and review the information of your company," Bai said. "Banking institutions' internal evaluation might take a while."
The lending renewal center has largely eased the funding difficulties of companies like Bai's because it has streamlined procedures and shortened the time required to secure loans. In August, Bai renewed a 3 million yuan loan at the center within three days.
"Previously, I needed to first return the principal to the bank to get the next loan," she said. "Now it's quite efficient in that I can get another loan directly in such a short time."
The center coordinates its efforts with those of government departments to better help small and micro-sized businesses in the capital's tech hub.
"Lots of materials are needed when companies go to banks for loan services," said Li Zhenyu, deputy director of Haidian district's financial office. "What we try to do is to integrate different kinds of loan businesses together and at the same time solve the difficulties smaller businesses have in gaining funds."
Fifteen banks and a debt-restructuring company have set up service counters at the center to provide loan consulting and other investment and financing services to smaller businesses, said Xu Liyan, chief representative of the Beijing Lending Renewal Center.
"We can provide timely service to shorten and simplify loan application procedures when some enterprises run out of money and would like to have emergency funds to turn things around," Xu said.
The Zhongguancun technology hub, known as China's Silicon Valley, is located in Haidian district. The district's GDP last year was 648 billion yuan, eight times the average for districts in Beijing.