Easy loans access for govt procurement suppliers

Small companies in Zhejiang province will be given easy access to bank loans if they have signed government procurement contracts.

Under a pilot program, small and medium-sized enterprises can collect credit points by becoming government procurement suppliers. The points can be used as a guarantee when these enterprises apply to banks for loans.

Six local lenders, including the Zhejiang branch of Industrial and Commercial Bank of China and China Zheshang Bank Co Ltd, have joined the program.

The program enables SMEs to apply for loans without providing property or other forms of collateral.

Last year, the Zhejiang provincial government signed 77.8 billion yuan ($12.3 billion) worth of procurement deals with companies. Among the deals, 70 percent were signed with SMEs.