In order to implement relevant requirements of the national policy on "inclusive finance", further strengthen support for micro and small enterprises (MSEs) of guarantee companies and banks, and innovate the cooperation model with banks, Beijing E-town International Financing Guarantee Co., Ltd., a subsidiary of Beijing E-town International Investment & Development Co., Ltd., has signed a bulk business cooperation agreement with Beijing Branch of Postal Savings Bank of China (PSBC), and launched a dedicated program to facilitate MSE loans.

Both parties will adhere to the principle of "guarantee upon loan application and bulk guarantee", fully leverage the amplifying function of the guarantee company and the advantages of the bank's network services,  to provide convenient, fast, and low-cost credit support for MSEs.

This special program, which is targeted at MSEs registered in Beijing, can provide a maximum of 5 million yuan ($697,058.41) in pure credit guaranteed loan, with no evaluation fee and a guarantee fee of just 1 percent.

Eligible enterprises can apply for this type of loan at PSBC. The bank's big data model can finish the loan quota calculation online, and the guarantee company, following the bulk guarantee mode agreed by the bank and the guarantee company, can promptly offer guarantee upon application without the need for repetitive due diligence investigations. The applicant in turn can get sufficient funding support in time.

This program breaks through the existing bank-guarantee cooperation model by setting a guaranteed compensation cap, achieving shared risks and management with the bank and effectively reducing risks. At the same time, it directly lowers eligible requirements for enterprises and increases accessibility of financial services for MSEs. Through big data analysis, it provides more accurate loan quota calculation and risk assessment, effectively solving the pain points in bank-guarantee cooperation, such as complex due diligence processes and lengthy approval time.

Going forward, Beijing E-town International Financing Guarantee will continue to deepen its collaboration with banks, actively promoting the bulk guarantee business model, further highlighting the role of guarantee institutions in enhancing credit, reducing fees, and sharing risks, striving to expand financing channels for MSEs, expanding the coverage of inclusive finance, and pushing the level of guarantee services to a new level.