Guangdong SMEs in need of 1.2 trillion yuan financing

Guangdong SMEs are having a tough season for the banks have tightened the load to them since the beginning of this year. And the input they need totaled about 1.2 trillion yuan, according to Guangzhou Daily.

There are over one million SMEs in Guangdong, with the SMEs in Pearl River Delta contributed over 50 percent of the whole province¡¯s economic output. Uncompleted data show these SMEs this year needs over 2 trillion yuan input, however, the banks can only provide about 0.8 trillion, less than 40 percent of the total need. And about 95 percent of the SMEs in the province are in short of development capital.

Staffs with the Industry and Commerce Bank, Guangdong Development Bank and other banks said they are willing to grant loans to local SMEs as it is profitable and new bad loans are under 1 percent.

Then why can¡¯t the SMEs get financing Guangdong SMEs Bureau had done a research recently, which showed most of the SMEs in the province had relatively low credit rating and can not find proper collateral for loan claim. And the local SMEs in labor-intensive industries with a low output-input performance are especially hard to get loans from banks.