In 2014, Industrial Bank provides small- and mini-sized financial service mainly to enterprises with loan amount less than 10 million yuan. After the bank taking small- and mini-sized enterprises with total assets less than 60 million yuan as key clients in 2013, this is another time for them to sink the service focus.
The sinking of service focus means that more small- and mini-sized enterprises can now benefit from IB's service, which also reflects the continued deepening of IB's business transformation.
It is said that, along with the sinking of service focus, the professionalized reform for small- and mini-sized finance of IB in 2014 is also accelerated in full speed. In the meantime, the bank also launched " Cultivation Program for the Growth of Small- and Mini-sized Enterprises ", proposed to support 30,000 new key clients across the country by the end of 2016.
More enterprises benefit from small- and mini-sized credit
Recently, IB announced that, it adjusts the positioning for small enterprises voluntarily in 2014, focusing on small- and mini-sized enterprises with loan amount less than 10 million yuan, and implements a series of system reform and favorable measures to overally update financial service to small- and mini-sized enterprises.
Earlier in 2013, the bank had made adjustment to customer orientation of businesses for small-sized enterprises, transforming from “priority to SMEs” to “priority to small- and mini-sized enterprises”, and giving priority to providing financial services to small- and mini-sized corporate customers with assets totaling not more than RMB 60 million.
The sinking of focus will undoubtedly benefits more small- and mini-sized enterprises. “Focus on small- and mini-sized enterprises and serve real economy is a long term business line for IB,” as indicated by the person in charge of the Small-sized Enterprise Department of Industrial Bank.
According to its 2013 annual report, small-sized enterprises clients of IB reached 221,200, up 37,500 (20.44%) from the beginning of the year; and the balance of loans to small-sized enterprises clients was 83.656 billion yuan, increased 33.688 billion yuan (67.42%) than that of the beginning of the year.
“It's our purpose to grow with small-and mini-sized enterprises, rather than loan business only.” as emphasized by the person in charge of Small-sized Enterprise Department of IB, “We also launched a three year ‘Cultivation Program for the Growth of Small- and Mini-sized Enterprises’”.
Under the Program, by the end of 2016, IB will, targeting at small- and mini-sized enterprises, form 100 key business areas, build 1,000 key clusters and support 10,000 new key clients across the country, develop client base of small- and mini-sized enterprises and grow with them gradually.
Improvement and streamlining of financial operation system to small- and mini-sized enterprises
Around the positioning adjustment of clients, IB is making effort to perfect financial service system to small- and mini-sized enterprise, which was summarized by the person in charge of Small-sized Enterprise Department of IB summarized as “aimprovement and strealining”, i.e. improvement of organization system and streamlining of business process.
At present, Industrial Bank has established a “three-grade” specialized operation system consisting of the Small-sized Enterprise Department of IB Head Office, small-sized enterprise departments of branches, and small-sized enterprise centers at cities. An exclusive risks management system has also been constructed according to the characteristics of small- and mini-sized enterprises. Meanwhile, they have gave great impetus to the building of specialized service team to small-sized enterprises, and set up such teams consisting of specialized account managers and risks managers to small-sized enterprises.
By the end of 2013, IB had established 38 small-sized enterprise departments at branch, 60 small-sized enterprise departments at cities and 160 specialized teams to small-sized enterprises, thus enlarging the beneficiaries of financial services to small- and mini-sized enterprises. As indicated by the above person in charge, by the end of 2016, the bank estimated to have over 450 specialized teams and 3000+ account managers for small- and mini-sized enterprises.
On the other hand, regarding the characteristics and risks points of small- and mini-sized enterprises, IB has conducted streamlining. To improve the availability of loans and efficiency in handling businesses and reduce the capital and time cost of financing for small- and mini-sized businesses, IB has designed a full set of exclusive business procedures and risk management mode for small- and mini-sized enterprises.
Particularly, in terms of business procedures, IB implements standard, intensive and low cost credit business procedures for small- and mini-sized enterprises and reduces the granting time of loan; in terms of risk identification, it reduces the mere dependency on financial statement and emphasis on actual information of production and operation, thus providing small- and mini-sized enterprises in real financing demand with financial support; in terms of guarantee condition, it brings down threshold of guarantee and focuses on the assessment of first repayment source; in terms of approval procedures, it delegates approval authority to branches and first line of business to improve efficiency.
“These important changes will bring a new experience for small- and mini-sized enterprises,” said the person in charge of the Small-sized Enterprise Department of Industrial Bank.
The three musketeers solved problems for small- and mini-sized enterprises
With the sinking of service focus and upgrading of service, plus the launch of IB’s “three musketeers” loans, more small- and mini-sized enterprises will be benefited.
As the boss of a food company in Hubei, Mr Liu worried about the cash flow as he needs about 5 million yuan in short term to pay for rent, initial expenditure and inventory in several community stores.
The company owned light fixed assets and lacked guarantee. With a high rate of capital operation and low reserve in daily business, Mr Liu will have to suspend the opening progress of original stores and reduce the capacity under the traditional way of repaying matured loans and borrowing new ones. Mr Liu hopes to use the capital in a continuous manner without repaying first and borrowing again, and to ensure the stable operation of capital.
However, several banks refused him until he went to Industrial Bank. Based on the situation of his company, IB customized a solution totaled 10 million yuan loan to him: 5 million yuan of “Fast & Quick Loan” guaranteed with fixed assets such as factory buildings and personal real properties, supplementing with “Consecutive Loan” to extend the period of loan, and another guarantee-free loan up to 5 million is granted under “Trading Loan” by aggregating revenues and valid settlement with major counterparty into IB.
“The three kind of loans really helps me a lot!” said Mr Liu with a relief.
As learned by the reporter, after “Fast & Quick Loan” and “Consecutive Loan” (exclusive credit products for small- and mini-sized enterprises) has been released in 2013, “Trading Loan” has also been launched at the beginning of 2014 by IB, forming the "Three Musketeers" of credit products to small- and mini-sized enterprises with these three loans and a one-stop financial solution for such enterprises.
By solving clients demand effectively, the "Three Musketeers" credit products are very popular in the market. Within less than 3 month, a total amount of nearly 6 billion yuan has been granted, which benefited about 2,000 small- and mini-sized enterprises.