Guangdong government will offer favorable policy to support SMEs

According to news report, many small and medium sized enterprises are cash-trapped and they need more bank loans. Guangdong government rolled out privilege measures to curb rampant private lending in Guangdong province in China and support SMEs development. Small-loan companies, township financial organizations and private equity and venture capital firms joined the governments’ program to help SMEs as well. Small businesses in the Pearl River Delta region were facing mounting pressure as export volume was diminishing due to labor cost, materials cost hiked. rnPrivate lending activities in Guangdong have not been as widespread as in other coastal regions. It is estimated that private lending will become a serious problem, if the government does not tackle the problem. In February, Guangdong announced policies to support cash-starved small companies, such as establishing development funds to build financing service systems, tax cuts and support for some small firms to go public. The specific policies are aimed at supporting small companies’ innovation and helping them develop new markets. Local authorities said they would also offer incentives to banks that provide credit for small firms. The authorities also urged banks to establish a credit rating system suitable for small and medium-sized enterprises. If private lending is really aimed at supporting the economy in line with the law, it may be protected by the government. SMEs can find more business opportunities on B2B platforms such as IBUonline. IBUonline is a professional e-commerce foreign trade platform, which offers integrated chain services in the industry.