By Jieyu Wang, iChongqing News
Chongqing — Chongqing established a credit financing mechanism for government procurement to help small and medium-sized enterprises and alleviated the problems of complicated and expensive financing in 2016. At the beginning of 2019, Chongqing launched a credit financing online loan application for government procurement with more straightforward approval procedures and higher loan approval efficiency. How has the new credit financing mechanism been working out?
Li Qing, the deputy director of the Chongqing Finance Bureau, hosted a press conference.
On September 26, at a press conference, Li Qing, the deputy director of the Chongqing Finance Bureau, introduced that online loan application provides small and medium-sized enterprises with an efficient and convenient new way of financing. From loan application, bank approval, loan contract signing to issue a loan, all these procedures will be processed online. It will genuinely save time and energy for the entrepreneur.
"There are few approval procedures for online application. Moreover, it's no need to meet with bank credit officers and provide paper materials for applying for loans. Also, the efficiency of loan approval has been greatly improved. In the past, manual approval took 1-2 months, but now the time has been greatly shortened. As long as the enterprise has complete materials, the bank can make loans within two working days at the earliest." Li Qing said.
Through launching an online loan application for government procurement, the government, enterprises, and banks have achieved a "triple win."
At the beginning of 2019, Chongqing branch of China Construction Bank and Chongqing Three Gorges Bank opened an online loan business. It has issued a total of 47 loans for 14 small and medium-sized enterprises, achieved an amount of more than 12 million yuan. Also, all loans are repaid on schedule.
"Judging from the feedback, companies who received this service generally think that online loan application is very convenient, and the interest rate is relatively favorable. Some small and medium-sized enterprises have chosen to apply for this loan a second time. The lending bank believes that after the execution of the government procurement contract, it can get the loan principal and interest on time. It has high approval efficiency, low loan risk, and high loan enthusiasm." Li Qing said.
Through launching credit financing online loan application for government procurement, the government, enterprises, and banks have achieved a "triple win." From the perspective of the government, procurement policy guidance functions have been enhanced. For enterprises, the difficulty and high cost of financing have been alleviated, which provides a financial guarantee for enterprises to timely fulfill government procurement contracts, ensures the smooth implementation of procurement projects, and further promotes the expansion of business scale. For banks, taking advantage of stable capital credit of government procurement projects, it can increase customer channels on the premise of controllable risks.
Li Qing also released that the Chongqing Finance Bureau will adopt two further proposals next. The first one is to encourage all banks involved in government procurement credit financing to start an online loan business. The second is trying to introduce the credit reference system of the People's Bank of China into the credit financing business of government procurement, to improve the loan risk control of banks.
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