Chongqing- Recently, China's first loan of the New International Land-Sea Trade Corridor (ILSTC) was issued in Chongqing.

The New Land-sea Corridor Operation Co., Ltd successfully helped an agricultural machinery export company to obtain 1.8 million yuan (about 0.27 million U.S. dollars) with the help of Chongqing Rural Commercial Bank.

"It's a great help during our most difficult time," said Xin Yu, who is in charge of the agricultural machinery enterprise in Chongqing. "Without providing any collateral, we obtained a financing loan of 1.8 million yuan, which sped up our cash flow."

This time, the enterprise that successfully handled the ILSTC loan specializes in producing, processing, and selling agricultural machinery, whose products are sold to Southeast Asian and African countries via the ILSTC.

The company's export logistics were blocked due to the rebound of the COVID-19 pandemic this year. Meanwhile, it also experienced delayed payment since foreign customers could not receive the goods, resulting in the company facing difficulties in fluid capital.

Knowing the company was at a loss, the Chongqing Rural Commercial Bank and the New Land-sea Corridor Operation Co., Ltd generated a project for the ILSTC loan with the background of export trade receivables financing and the cross-border RMB as lending currency. They provided the company with a convenient, low-cost credit loan of 1.8 million yuan, solving its urgent need.

Reducing the financing threshold

The ILSTC loan project is a financing product led by the New Land-sea Corridor Operation Co., Ltd and customized by the bank for the ILSTC import and export enterprises. It introduces the national financing guarantee fund by Chongqing Rural Commercial Bank and establishes a risk-sharing mechanism with the Small and Micro Business Guarantee. The multiple sides' collaboration can help the ILSTC enterprises obtain credit loans and reduce the financing threshold.

At the same time, the project utilizes functions including the customs declaration inspection and logistics information query to improve the financing settlement efficiency, relying on the cross-border financial service platform. 

As the first financial institution to implement the ILSTC loan, Chongqing Rural Commercial Bank gave full play to its headquarters' advantages in business innovation. It strengthened the creation of business products within the bank and established a cooperation mechanism with related departments. With the joint efforts of all parties, it successfully promoted this innovative business, reducing the financing threshold for companies.

Furthermore, the New Land-sea Corridor Operation Co., Ltd has actively built an international multimodal transport system and an ecosystem integrating logistics, trade, industry, finance, and data, striving to develop a comprehensive land-sea service platform worldwide. The company has created many low-cost credit financing products for micro, small, and medium enterprises in the corridor, facilitating its capital needs. 

(Ge Rongchen, as an intern, also contributed to this report.)