Small and medium sized enterprise or SMEs daily operations have been recently facing troubles with financing constraints. The government has taken a number of steps to solve this problem。 However, many remain in urgent need of loans.

Tang Yong runs a machinery factory in Ningbo of Eastern China's Zhejiang province. His products normally require 45 days of production, so a well-stocked inventory is a must. Tang Yong said, "It's like preparing for the rainy day."

Bulk storage takes up a great steak of the company's circulating capital. So as orders fly in, money shortages can hold the company back from expansion.

Tang Yong said, "I did try private loans. But I had to pay the money back soon."

Tang is not the only one caught in a dilemma. Ye Hongjun is facing the same problem in his factory - which produces and exports household supplies like combs to United States and Japan. Ye is actually experiencing a boom in orders despite a souring export environment.

Ye Hongjun said, "We have received enough orders for production till next July." That's good news, but Ye is eyeing on expansion, and has had to cut short such ambitions because of funding issues.

Ye Hongjun said, "Bank loans aren't easy to get without a mortgage. We can't mortgage the plant, because it's leased. And we can't mortgage the machines, because we need them for production."

The PMI currently stands above 50 - suggesting that business is expanding in the industrial sector as a whole. Behind it are millions of small and medium business owners like Tang and Ye. For them, funding is their utmost priority if they want to continue to grow.

Go to Forum >>0 Comment(s)