 |
|||
|
|||
The difficulty in getting loans has plagued small and medium-sized companies for a long time in Urumqi, capital of Xinjian Uygur autonomous region.
To solve the bottleneck problem, the Urumqi Economic and Technological Development Zone (Toutunhe Zone) came up with some innovative solutions, such as a “micro financial supermarket” and an on-and-off line rapid financing platform. These measures hoped to bolster financial resources in the region.
Xinjiang Top Culture Development Co is one that has benefited from the zone’s initiative. According to its financial manager, Qi Tingting, the company was caught in an embarrassing situation where it risked losing a new project due to a capital shortage. It was Fenghui Direct Lending Company that offered them rapid loans and helped them become the contractor of the new project.
“In the 1 million yuan ($149,000) we borrowed, we got 500,000 yuan within only ten working days. Our project is in stable operation, and it is expected to bring a five percent growth in the turnover,” Qi said, adding that the rapid loan would save them of 50,000 yuan ($7433) interest compared to private loans.
 |
|
A staff member of Fenghui Direct Lending Company interviews a representative of Xinjiang Top Culture Development Co about the loans they have received. [Photo/uetd.gov.cn] |
Xinjiang Yidatong, a company specializing in financial services, provides even more flexible financing solutions for small and micro companies via an online platform called “fox”. It has provided a local logistics company Zonglian Lugang with loans at a time when the company was faced with a considerable financing gap. “We got our loans just in 24 hours. The platform is efficient and flexible, and it is really good for companies like ours which have large capital flows”, said Zhao Yixuan, a representative of the company.
According to Li Min, chairman of the board of Xinjiang Yidatong, they now have nearly 20,000 customers and have altogether issued 159 million yuan ($22.3 million) worth of loans as of the end of September.
 |
|
Zhao Yixuan, a representative of Zonglian Lugang applies for loans from Xinjiang Yidatong . [Photo/uetd.gov.cn] |
Since the zone began integrating its financial resources and setting up small and micro financial supermarkets in 2015, dozens of the region’s small financial institutes have joined the program and helped more than 2,000 individuals, as well as medium, small and micro-sized companies. From December 2014 to September 2016, the financial institutions in Toutunhe Zone have issued 4 billion yuan ($695 million) worth of loans.
Edited by Zachary Dye
