BEIJING, (Xinhua) -- Li Shiji, who owns a small grain-processing company in Shenyang of northeast China's Liaoning Province, found it difficult to secure business loans for most of his career due to a lack of collateral. But the recent launch of a government-backed financing tool has eased his company's financial pressures, he says.
A government financing guarantee product initiated by Liaoning Province Financing Guaranty in partnership with various banks has helped Li's firm secure 5 million yuan (about 693,385 U.S. dollars) in much-needed loans.
By analyzing common traits among enterprises in specific industries and establishing a standardized, scenario-based financing model, the product effectively enables small and medium-sized enterprises (SMEs) and entities in rural industries to access loans. As of the end of March, the program had supported 16 county-level industrial clusters, providing 430 million yuan in guaranteed loans and sustaining 3,800 jobs.