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By now, the Jiading Dazhong Micro Credit Company has provided 36 loans for local micro-to-small-sized businesses, forking out 230 million yuan ($37.74 million) in loans. |
A poor cash flow is the last thing a business owner needs to see in difficult times, and that is exactly the a micro finance agency in the Jiading district of Shanghai was set up to deal with, by the Dazhong Transportation (Group) Co, in May.
And, by now, the Jiading Dazhong Micro Credit Company has provided 36 loans for local micro-to-small-sized businesses, forking out 230 million yuan ($37.74 million) in loans.
One example of its success is a wood products company that supplies subsidiaries of the China State Construction Engineering Corp, which was facing exactly those circumstances this past July and was on the verge of shutting down. When it filed an application with the loan company, it got 6 million yuan within a week, after some preliminary studies.
Another beneficiary was an aquatic products provider that needed funding to stock up on crabs in September and submitted an application, receiving a 450,000-yuan loan from the micro-financer. One of the owners explained, ”The money will be enough for me to continue operations in the coming crab season, which is crucial in this business.”
A head of the finance company put it this way, ”We make small loans for micro-to small-sized firms and the self-employed, offering timely help just when it’s needed. “
The company says that its next step is to join hands with some guarantee companies to provide loans in ways that are more flexible and suitable to borrowers, depending on their credit rating and individual situation, in the hopes of better serving small business.
Edited by Lin Hong and Roger Bradshaw