Enterprises in Beijing struggling to pay off working capital loans as well as needing new loans have found remedies thanks to a center built by the Haidian district government and the Beijing Bureau of the China Banking and Insurance Regulatory Commission.

The center, which opened in August 2019, mainly serves small and micro businesses that face temporary financing problems when their working capital loans approach their payment deadline.

After application, evaluation and approval, these enterprises can receive a loan from banks in the center to pay back the previous one.

By the end of 2019, the center had dealt with 321 applications for loan renewals. They approved 316 of them with a combined amount of 1.99 billion yuan.

The center will also collaborate with the National Intellectual Property Administration and the Copyright Protection Center of China. These authorities will jointly build a fast track in the center for enterprises to pledge their software copyrights, patents and trademarks.

Other planned measures include conducting cooperation with more intermediary agencies, establishing a blockchain-based financial service platform for small and medium-size enterprises, and releasing a list of enterprises that should be focused on by financial institutions.

The list of the first batch of enterprises in Beijing's Zhongguancun Science City has been determined. It includes 402 startups and 40 unicorns, which refers to high-growth startup businesses each valued at over $1 billion, Li said.

Source: China Daily