Beijing trims costs for SMEs to create better business environment

The financial guarantee process has been largely shortened for Beijing-based small and medium-sized businesses, which also enjoyed a reduced guarantee cost thanks to a recent plan released by Beijing Municipal Bureau of Financial Work, as part of the Beijing municipal government's efforts to foster a better business environment.

"Some small companies and startups have really good ideas and promising business models, but they often get rejections from banks and guarantee service providers due to lack of money or insufficient credit building," said Guo Hong, chair of Beijing Zhongguancun Bank Corp Ltd, the first privately owned bank in China that provides financial-guarantee services to small businesses and startups.

The plan, effective March 15 and dubbed "Opinions on Further Optimizing the Financial Credit Business Environment", covers 14 measures promoting innovations to the current guarantee mechanism and financial services to local residents.