Heilongjiang Provincial Administration for Industry and Commerce signed an IPR financing  agreement on August 23 with Guangdong Development Bank Harbin Branch. As a move to resolve SMEs' shortage of collateral, it will allow SMEs to access finance in pledge of trademarks, stock rights and movables.

Due to the limitation in information disclosure and shortage of collateral, the threshold for SMEs to apply for bank credit is much higher than that of large enterprises .

According to the agreement, the Bank will lend loans to SMEs based on the information it draws from the platform jointly set up by both sides. But a loan application should first be filed to Heilongjiang Administration for Industry and Commerce.

A spokesman from Guangdong Development Bank said, the cooperation greatly depends on the information platform, from which banks can easily obtain information and financing needs of qualified SMEs. Both sides will establish a long-term liaison mechanism to provide a full range of comprehensive financial services to private SMEs; will jointly organize a variety of activities to understand the operations and financing needs of SMEs; and will develop for SMEs financial products and services program. In a word, SMEs in Heilongjiang will enjoy a convenient, qualified and efficient financial service.

Seeing that SMEs lack effective collateral but the Administration can accept registration of pledge of movables, stock rights and trademarks, Guangdong Development Bank is currently developing  a variety of pledge and insurance to meet the financial needs of SMEs.

(Source:IPR in China)