It took the Taiyuan Tianrui Commerce and Trade Co Ltd only half an hour from 9:00 to 9:30 am on May 19 to complete its direct financing of 3 million yuan ($458,400) on the Internet.
As a small and medium-sized company in North China's Shanxi province, the company is plagued no longer by the big headache of financing.
It raised the money by using the direct Internet financing business of the Shanxi Financial Assets Exchange Center, the only State-owned financial assets exchange platform approved by the government of Shanxi.
The business has raised a total of nearly 20 million yuan for a few small and medium-sized companies, with financing from one million yuan up to five million yuan each.
Companies in need of money needn't wait long to obtain financing; the shortest wait may be only about a week. The efficient and convenient Internet financing solves enterprises' difficulties arising from capital turnover.
"As to how to guarantee the safety of investor's capital, the Shanxi Financial Assets Exchange Center has cooperated with local State-owned bonding companies to provide joint liability guarantees for the financing of small and medium-sized companies having relatively low risk resistance capacity," said a person in charge of the business. This can greatly reduce financial risks for investors.
The new economic normal calls for further supply-side structural reform, which is a good opportunity for the Internet financing sector to play a bigger role.
