Small Enterprises Need Easier Access to Credit

　　A number of struggling small companies here in China have been making calls for more support from the banks to help their companies survive.

 

　　CRI's Zhou Jingnan with some of their stories.

 

　　Reporter:

 

　　Manufacturing and service sectors¹ in China had a lot of difficulties in the first half of this year, due to rising costs, overcapacity and intensive market competition.

 

　　Together with the effects of the global economic crisis, some small enterprises in these industries have found it hard to gain access to loans and credit. Some were even very close to bankruptcy³ because of a shortage of money.

 

　　Richi Machinery⁴ is located in Ningbo, East China's Zhejiang Province. It mainly produces auto⁵ parts.

 

　　Company President Zhang Liming says currently their biggest difficulty is that they have orders worth 40 million yuan, but they don't have the money to buy the raw materials needed to complete the production process. To meet their orders the company still needs 5 million yuan, but no loans are ready for them.

 

　　"The conditions required to obtain loans are becoming higher and higher. In the past, it was easy. If you have a good reputation, the banks would lend you money; millions of yuan. But now, banks need to check many documents, like your tax payments, cash flow records, credit records and so on. Banks are responsible for their own safety, so they raise the barrier for small enterprises to obtain loans."

 

　　To solve the problem and ease the pressure of financing, local governments in China have tried to offer stronger support. Take Yongjia County in Wenzhou for example. The county has started a loan service which allows applications without the need for mortgages or guarantees.

 

　　Chen Xiaozong, Director of Enterprise Development Center in the county, says that enterprises could obtain an individual loan between 200,000 to 500,000 yuan in about three days after submitting their application.

 

　　"The application is very simple. Business owners just have to bring their license⁶, ID, bank and tax records and electricity fees records which prove that the enterprises or factories have been working and producing."

 

　　In addition to the efforts of local governments, at the national level China plans to provide more support to the manufacturing and service sectors in order to diversify⁷ the real economy, so as to help small enterprises.

 

　　Shang Fulin, Chairman of the China Banking⁸ Regulatory Commission, emphasizes that in order to achieve this, the banking system needs a national strategy which encourages private capital into the financial sector².

 

　　"We encourage private capital to invest in stock shares or participate in the restructuring of financial institutions, so as to avoid financial and ethical⁹ risks through regulation."

 

　　If private capital is allowed in the financial sector, it is expected that access to credit would be much easier. Such a move would bring convenience and opportunities to small enterprises.

1 sectors   

n.部门( sector的名词复数 )；领域；防御地区；扇形

参考例句：

• Berlin was divided into four sectors after the war. 战后柏林分成了4 个区。 来自《简明英汉词典》
• Industry and agriculture are the two important sectors of the national economy. 工业和农业是国民经济的两个重要部门。 来自《现代汉英综合大词典》

2 sector   

n.部门，部分；防御地段，防区；扇形

参考例句：

• The export sector will aid the economic recovery. 出口产业将促进经济复苏。
• The enemy have attacked the British sector.敌人已进攻英国防区。

3 bankruptcy   

n.破产；无偿付能力

参考例句：

• You will have to pull in if you want to escape bankruptcy.如果你想避免破产，就必须节省开支。
• His firm is just on thin ice of bankruptcy.他的商号正面临破产的危险。

4 machinery   

n.(总称)机械，机器；机构

参考例句：

• Has the machinery been put up ready for the broadcast?广播器材安装完毕了吗？
• Machinery ought to be well maintained all the time.机器应该随时注意维护。

5 auto   

n.(=automobile)(口语)汽车

参考例句：

• Don't park your auto here.别把你的汽车停在这儿。
• The auto industry has brought many people to Detroit.汽车工业把许多人吸引到了底特律。

6 license   

n.执照，许可证，特许；v.许可，特许

参考例句：

• The foreign guest has a license on the person.这个外国客人随身携带执照。
• The driver was arrested for having false license plates on his car.司机由于使用假车牌而被捕。

7 diversify   

v.（使）不同，（使）变得多样化

参考例句：

• Our company is trying to diversify.我们公司正力图往多样化方面发展。
• Hills and woods diversify the landscape.山陵和树木点缀景色。

8 banking   

n.银行业，银行学，金融业

参考例句：

• John is launching his son on a career in banking.约翰打算让儿子在银行界谋一个新职位。
• He possesses an extensive knowledge of banking.他具有广博的银行业务知识。

9 ethical   

adj.伦理的，道德的，合乎道德的

参考例句：

• It is necessary to get the youth to have a high ethical concept.必须使青年具有高度的道德观念。
• It was a debate which aroused fervent ethical arguments.那是一场引发强烈的伦理道德争论的辩论。