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Pingnan offers loans to small businesses

( chinadaily.com.cn )

Updated: 2015-05-08

Pingnan's Rural Credit Cooperatives, a legal financial institution, launched a loan initiative for small and micro businesses this March to alleviate their financial pressure, the Min Dong Daily reported.

The loan amount varies on the basis of each company's tax records. The better tax records companies have, the higher the loans they can get. Grade A Tax Credit companies operating for at least three years are entitled to borrow ten times their annual taxable amount.

"The maximum amount of every single loan for each eligible company is 2 million yuan ($322,200), and the longest loan duration is three years," said a director of Pingnan's State Taxation Administration.

This model not only solves companies’ financial problems, but also encourages them to pay taxes according to the law.