OREANDA-NEWS. August 11, 2011. ICBC actively focuses on offering equipment leasing services to small-and-medium enterprises (SMEs) starting from this year by taking maximum standing of the integrated operation of ICBC Leasing, the wholly owned subsidiary of ICBC, reported the press-centre of ICBC.

Tailored financial leasing solutions are provided to assist SMEs in production expansion and improvement. Just within the first six months of this year, ICBC Leasing has provided equipment financial leasing of nearly RMB 1.7 billion to 62 small and mid-sized businesses, which are important for them to loom large.

The SME equipment leasing is a service in which the leasing company buys the equipments from suppliers stated by the SMEs or directly buys the equipments owned by the SMEs, and then rents the equipments to the SMEs as agreed in the contract and collects the rent. The equipment leasing is ideal for small and mid-sized businesses to secure working capital for their rapid growth. The Shuya Home Textile Limited Company ("Shuya") in Jiangsu's Suqian is such a company. Shuya produces chemical fiber blankets and bed linens. At present the company has two production lines and two others are in testing. Shuya urgently needs working capital to buy raw material to fulfill the increasing orders.

However, the factory plant cannot be used as collateral as Shuya is applying for the property ownership certificate. Shuya is burning with anxiety. After learning the situation, ICBC Suqian Branch immediately called up ICBC Leasing to offer equipment financial leasing service to Shuya. The machinery equipments of the two production lines in operation were used to apply for ICBC Leasing's equipment financial program. Shuya soon secured a loan of RMB 30 million from ICBC Leasing to address its immediate need of working capital.