Liaoning reduces foreign trade enterprises' financing difficulties

Northeast China’s Liaoning province recently launched the "Liaoning Trade Loan" credit financing product for small and micro-sized enterprises conducting foreign trade.

The product is mainly targeting small and micro-sized foreign trade enterprises with a loan scale of fewer than 5 million yuan and a total financing cost of less than 5 percent.

This product is the country's first credit financing product that operates under the commercial model of "guarantee + credit insurance" and specifically supports foreign trade companies.

In normal conditions, most credit products focus on asset mortgages, which tend to disadvantage foreign trade enterprises with light assets and high turnover when seeking financing.

The "Liaoning Trade Loan" relies on a financing guarantee based on the export quota of foreign trade enterprises in the past two years and the effective insurance policy issued by the China Export Credit Insurance Corporation.

This has effectively lowered the threshold for relevant enterprises to apply for loans and eased small and micro-sized foreign trade companies' financing difficulties.

The product has also helped foreign trade enterprises speed up capital turnover and expand trade scale, receiving widespread attention and recognition from small and micro-sized foreign trade enterprises in Liaoning.

To date, a total of seven guarantee institutions in Liaoning have officially joined the "Liaoning Trade Loan" business cooperation system.