New loan companies offer help to small enterprises

GUANGZHOU: Small businesses in Guangdong province will have easier access to loans after authorities approved up to 21 small loan companies, the provincial finance office said yesterday.

"The small loan companies, although their interest rate is a little higher than banks, will be attractive for many small companies, which usually have difficulties finding loans from banks," said Ye Haopeng of the Dongguan finance service office.

Dongguan, in the heart of the prosperous Pearl River Delta region, has developed many large international banks, but fewer financial institutions that are willing to lend money to small companies, Ye said.