Corporate Banking

Featured Products for Small Enterprises

(I) Equipment Mortgage Loan for Small Enterprises

1. Product Definition

The Bank provides small enterprises with RMB loan to purchase general machinery equipment for its own operation and production, mortgaged by the purchased machinery equipment.

2. Product Features

•For small enterprises to purchase general machinery equipment for its own operation and production;

•The loan quota may reach 70% of purchase price of equipment;

•The loan term shall not exceed 3 years, and repayment shall be on a monthly or quarter basis.

3. Target Customers

Manufacturing enterprise that is domiciled in the PRC, and has been registered and established with industry and commerce administrative authority for over two years (inclusive).

4. Materials Required

•Loan Contract

•Equipment Procurement Contract

•Invoice for purchased equipment

•Tax certificate relevant to equipment procurement

•Certificate of self-owned funds for equipment procurement

•Other materials required by the Bank

(II) Enhancement loan

1. Product Definition

Enhancement loan for small enterprises: for small enterprises that can provide guarantee of core or major assets, the Bank evaluates credit enhancement factor of core assets, and determines the credit enhancement to customers, by taking into account of its grading in the Bank, internal rating and other credit enhancement materials supplied by customers.

2. Product Features

•By vitalizing various assets, controlling material effective assets of enterprises and allocating pledge rate in a flexible way, the Bank provides customers with different credit enhancement in taking account of their settlement and customers grading as well as internal credit rating. The pledge rate may reach as high as 150%, so as to improve the flexibility of financing.

•It is applicable to current capital loan and on-sheet and off-sheet short term credit business including bill acceptance, discounting and L/C

•The validity period of credit extension shall not exceed 3 years, and the credit can be reused in the period

3. Target Customers

Small enterprises that can provide guarantee of core or major assets, open settlement account in the Bank, use the Bank as the major settlement bank, and meet our requirement on internal rating and customer classification.

4. List of Materials

•Loan Contract

•Various assets certifications

•Various leases, orders and other business contracts

•Guarantee contract

•Other materials required by the Bank

(III) IB Guarantee-assistant Fund Financing

1. Product Definition

The Bank signs IB Guarantee-assistance fund financing agreement with government, provides enterprises that belong to “key supporting groups of SMEs” with credit extension, and applicants pay a certain amount of guarantee-assistant fund, which, together with the risk compensation supplied by government, become a credit enhancement measure .

2. Product Features

•Build a third party cooperation platform for government, enterprise and bank. The risk compensation supplied by government and guarantee-assistance deposit paid by enterprises form a “guarantee-assistance pool”, enhancing credit for enterprises to apply for loan; three parties share information sources and control risks in a collaborated way.

•Increase loan quota available for enterprises and lower financing cost, thus effectively solving the problem in financing due to lack of guarantee and mortgage by small enterprises.

3. Target Customers

SME group identified jointly by SME risk compensation administration authority and the Bank.

4. Materials Required

•Loan Application

•Business license and other underlying materials

•Other materials required by the Bank

(IV) Joint Loan and Joint Guarantee of Small Enterprises

1. Product Definition

It means that three or more small enterprises form a joint guarantee group voluntarily, and apply for credit extension to the Bank together. Under such joint guarantee group, each member assumes joint and several responsibility for all the debts generated under joint loan and joint guarantee by all other members in the Bank.

2. Product Features

•The joint guarantee group is formed voluntarily with at least 3 members;

•Each member must deposit self-owned fund equivalent to at least 10% of respective loan into the Bank, to provide pledge guarantee for all the members jointly;

•The products under joint loan and joint guarantee include current capital loan and short term credit product such as discount and bank acceptance, exclusive of fixed assets loan or project financing.

3. Target Customers

Small enterprises that open settlement account and use the Bank as the main settlement bank, with more than two years of continuous operation, and achieve continuous profitability during the past two years, or the legal representative of the enterprises has been engaged in the industry for three years or more.

4. Materials Required

•Joint Guarantee Agreement

•Joint Guarantee Contract

•Loan Contract

•Other materials required by the Bank

(V) Online Self-service Circulating Loan for Small Enterprises

1. Product Definition

It means that qualified small enterprises achieve circulating use, self-service withdrawal and borrowing and repayment at any time via the Bank’s internet banking, according to approved quota and period and agreed fund use.

2. Product Features

•Flexible use. Multiple withdrawal and circulating use within the quota and period.

•Online operation. Online self-service operation, simple and quick procedure, without repeated approval.

•Diversified repayment methods. It can be borrowed and repaid at any time. The borrower may choose to repay at one time or by installment according to their actual demand.

•Saving cost. It effectively reduces the capital tied up and financial cost, increases use efficiency, and saves labor and time cost of dealing with bank.

3. Target Customers

Small enterprises that open corporate internet banking, with clear transaction record, stable counterparty and healthy fund flow.

4. Materials Required

•Application for online self-service circulating loan

•Contract for online self-service circulating loan

•Internet banking service agreement

Other materials required by the Bank

TOP