OREANDA-NEWS. January 14, 2015. ICBC has recently issued Easy Loan Corporate Card for Micro and Small Merchants, the first product of its kind in China based on big data to provide credible and well-managed micro and small merchants with unsecured financing solutions requiring no mortgages.

This has broadened the financing channels for micro and small merchants. According to statistics, by December 10, 2014, ICBC had provided loans of over RMB 5 billion to nearly 9,000 micro and small merchants through this card producct.

According to an ICBC official, the “Easy Loan Corporate Card for Micro and Small Merchants” is designed for micro and small merchants with POS acquiring business. It is an uncovered and unsecured petty loan product with revolving line of credit that can be repaid by installments. ICBC sets credit line of merchants based on their POS acquiring revenue. Within the credit line, merchants can purchase daily goods and pay other operating expenses by swiping card on the POS machine. Compared with traditional credit products, the biggest advantage of “Easy Loan Corporate Card for Micro and Small Merchants” is “immediate borrowing by swiping card for immediate use”. With rapid handling process and accurate credit granting, the card provides unsecured and unguaranteed loans requiring no annual fee. Repayment for expense and transfer can be made by installments, and the number of installments ranges from 2 to 24 based on customers’ needs. The card can be used within the credit limit on a revolving basis, with no need for repeated loan applications.

Therefore, daily fund use and management become more convenient, especially for micro and small merchants in the fields of catering, hairdressing, supermarket chain, general merchandise, private gas station and production and wholesale, satisfying the demands in production and operation.

Mr. Chen, who runs a Chongqing hot pot restaurant in Tianhe District of Guangzhou, is deeply impressed by the convenience of “Easy Loan Corporate Card for Micro and Small Merchants”. Not long ago, Mr. Chen wanted to open a new restaurant in Pearl River New Town, the landmark area of Guangzhou. However, lack of funds, non-local identity and lack of real property in Guangzhou make it difficult for him to meet the requirements for obtaining any bank loan. So his plan for a new restaurant was delayed. In response, local branch of ICBC recommended him the “Easy Loan Corporate Card for Micro and Small Merchants” and provided a credit facility of RMB 1.5 million on the basis of transaction data from ICBC POS. As a result, Mr. Chen had enough fund to open a new restaurant. With the loan, Mr. Chen rented a new premise in Pearl River New Town and bought a truck and raw materials. Now, decoration is underway. After the fund shortage was addressed, Mr. Chen’s hot pot business is gaining momentum. Currently, his revenue has reached almost RMB  70,000 on average daily basis.