“Thanks to IB’s ‘Honest and Easy Loan’, the new production line can start on schedule.” On November 1, 2016, looking at new products processing in the new production line, Wang Hua (a pseudonym), a youth farmer entrepreneur from Anhui province could not conceal his joy.
Faced with economic depression, small and micro businesses longed for invigorating themselves through financing. In order to help out small and micro businesses, IB renowned for innovation has launched a variety of financial innovative products for small and micro businesses. As of the end of September, 2016, the product package (“Easy & Quick Loan”, “Consecutive Loan” and “Trading Loan”) for small and micro businesses merely had offered financing support of more than RMB 37 billion for over 8500 small and micro businesses.
“Honest and Easy Loan” supported small and micro businesses wholeheartedly
After working elsewhere for a dozen of years, Wang Hua went back home in 2012 to open a small chemical plant producing adhesives in Shushan district, Hefei city. By virtue of his hard work, the plant gradually expanded and gained a foothold in the local market. However in recent years, due to pollution and strong toxicity, traditional adhesive gradually lost its market. Wang made a flexible choice and planned to produce “green adhesive” with starch as the main raw material.
To produce new products required transformation and upgrade of the existing plant as well as a new production line. In 2016, after putting savings of over RMB 2 million into plant transformation, Wang was in urgent need of funds to purchase production equipment and procure raw materials, but many banks could not offer him medium and long-term loan of over a year.
At that helpless moment, IB’s new “Honest and Easy Loan” was like timely rain and solved his problem. With the maximum amount of RMB 10 million and the longest term of 3 years, the loan required neither extension cost nor fees of mortgage (pledge) registration, and avoided complex procedures of re-signing agreement and re-making mortgage (pledge) registration in re-loan. Thus Wang could concentrate on production and operation with such stable and continuous financial support. Meanwhile, the loan allowed variable ways of repayment including installments and equal repayments of principal and interest (principal).
With a loan of RMB 2 million from IB, the new production line started on schedule in the plant. Green adhesives it produced rapidly expanded to other markets in China and the number of orders leaped.
Customized “combination”
“Honest and Easy Loan” was only one move of the customized “combination” that helped small and micro businesses solve problems of “difficult financing” and “expensive financing,” said Li Taishun, general manager of Department of Small Business of IB.
It was introduced that with regard to financing characteristics of “short time, small amount, frequent and urgent needs” of small and micro businesses, IB enriched special product series for small and micro businesses and launched a product package mainly including “Easy & Quick Loan” and supplemented by “Consecutive Loan” and “Trading Loan”. Clients can apply for any of them or portfolio credit line. In the product package, “Easy & Quick Loan” meets easy and quick needs in financing of small and micro businesses, and a loan will be approved within three days given complete application materials of credit line; clients of “Consecutive Loan” are not required to repay the capital upon expiry and can extend the time limit of repayment through perfect connection of getting a loan and repaying the loan, reducing pressure of repayment; based on use of big data, “Trading Loan” requires no mortgage (pledge) and verifies the amount of financing for a client with daily settlement and deal records, thus the client can get a loan easily.
This product package was also extolled by Li Tongren, who is in charge of a private clothing enterprise in Fujian. In recent years, this enterprise strove to be a general agency of a German men’s clothing brand in Fujian, but it was worrying over a lack of self-owned fund. In view of its urgent need of fund, IB tailored “Easy & Quick Loan + Consecutive Loan + Trading Loan” portfolio financing plan, finished all approval procedures of loan within three days and made an “Easy & Quick Loan” of RMB 2.8 million. Subsequently, it provided “Trading Loan” free guarantee financing of RMB 0.7 million and supporting “Consecutive Loan”. Thanks to financing support from IB, it succeeded in being the general agent of that German men’s clothing brand. “In terms of amount of financing, time limit and way of repayment, IB took into account of our difficulties and offered the best financing plan for us. We really appreciate that!” Li said emotionally.
To serve small and micro businesses, IB strengthened two-tier product design system of headquarter and branch depending on distinctive regional features, and vigorously pushed forward the launch of cluster business for small and micro businesses, such as Quanzhou “Taxation Loan”, Wuhan “Commercial Paper Loan”, Guangzhou “Science & Technology Loan for small and micro businesses, Zhengzhou “Benefit Farmers Loan” and other innovative products and regional cluster plan with regional features which satisfying needs of small and micro businesses. As of the end of September, 2016, IB had set up 571 industrial clusters, and loan balance under clusters had reached RMB 25.867 billion.