OREANDA-NEWS. August 15, 2013. In May 2013, Sichuan Haoyunduo Food Company received a working capital loan of 2 million yuan from Pixian County CDB Rural Bank, and in July it received a working capital loan of 4 million yuan from CDB Sichuan Branch.

Haoyunduo's general manager said excitedly, "This is CDB and its rural bank's structured financial product tailor-made for small and micro enterprises. CDB has on one hand met the urgent funding needs of small enterprises and on the other hand provided stable and low-cost funding support for small enterprises, and at the same time enterprises' financing cost has been lowered thanks to the loans' integration with their production cycles. With financial innovation CDB has solved the financing problems of small enterprises like us."

This is "County Micro Loan Direct", a financial product launched by CDB Sichuan Branch and the Pixian County CDB Rural Bank jointly with Chengdu SME Financing Guaranty Company for the purpose of meeting the "timely, stable, and low-cost" financial needs of small and micro enterprises.

As a rural bank established by CDB, the Pixian County CDB Rural Bank has, since it began operational in March 2013, always implemented CDB's development financing philosophy of "universal financial benefit" and gone county-wide to learn about the financing needs and difficulties of grassroots small and micro enterprises in order to build a county-wide development financing service platform and bring CDB's superior resources into Pixian to support the development of local small and micro enterprises. It was against such a background that CDB designed and launched the "County Micro Loan Direct".

Utilizing this service will only require enterprises to apply to the Rural Bank, which will coordinate with CDB Sichuan Branch and Chengdu SME Financing Guaranty Company for conducting due diligence, thus saving the enterprises the hassle and costs of making visits to banks and arranging for guarantees.

With its advantages of being close to the county and to the customers as well as a flexible approval mechanism, the Rural Bank is able to provide enterprises with quick small-amount financing to meet the enterprises' urgent financing needs. At the same time, CDB Sichuan Branch can back the Rural Bank with larger follow-up funding support to further meet enterprises' financing requirements, while its collaboration with the Rural Bank on loan maturities can reduce enterprises' financing costs.