Intellectual property pledge financing boosts small businesses in Tongzhou
Tongzhou district in Nantong, Jiangsu province has been actively promoting intellectual property pledge financing to alleviate the financing challenges faced by small and medium-sized enterprises in recent years.
As of this year, both the amount and number of IP pledge financing projects have seen significant growth compared to last year. From January to April, there were 64 instances of IP pledge financing, totaling 1.08 billion yuan ($148.99 million), showing promising momentum.
One of the companies benefiting from this policy is Tianchong Textile Co Ltd, which primarily engages in foreign trade of fabrics. Due to a time gap between the payment for raw materials and the receipt of sales revenue, the company had been facing financial constraints.
Recently, however, the company signed an IP pledge financing loan contract with the Tongzhou branch of Jiangsu Bank. It applied for a 4-million-yuan financing loan from Bank of Jiangsu using a patent for anti-static woven fabric.
"Upon signing a contract, IP pledge financing loans can be disbursed within two working days," said Li Yinpeng, manager of the small and micro enterprise department at the Tongzhou branch of Bank of Jiangsu.
"Last year, we issued IP pledge financing loans exceeding 100 million yuan to 18 companies. In the first quarter of this year, we have already issued over 40 million yuan in such loans to 9 companies, showing a clear upward trend," Li added.
Tianchong Textile Co Ltd signs a contract with Bank of Jiangsu. [Photo/WeChat account: wxtzfb]
