"I didn't expect a certificate of honor can 'exchange' me a loan through a written promise. This has turned our small business financing trail into a highway. On October 13, Mr. Hu, the head of a corrugated box factory in Wenzhou, said he had just received 300,000 Yuan of "intangible asset loans". As there is no collateral, the enterprise could only get loans with a guarantee or from private institutions to ease the financial constraints. Now by virtue of the "most beautiful Xinqiao resident" honorary title issued by the local Street Administration Office, this enterprise applied for and actually get a loan in Bohai Agricultural Bank.

In Wenzhou, in addition to factories, storefronts, equipment, and other tangible assets, small and micro enterprises can also apply intellectual property rights, goodwill, honor, special technology, scientific and technological data, ancestral secret recipes, demolition indicators, rental interests, and other intangible assets that they think have economic value for a loan. If the bank considers that their intangible assets can be entrusted to, then no mortgage, no guarantee, only a written "commitment to grant" is enough for entrusting with the minimum annual interest rate of only 4.35%. This "small micro-enterprise asset loan" model, which was first explored in Zhejiang province, had been credited with the financing of 1.05 billion yuan by the end of September.

Micro-enterprises are the "capillaries" of the social economy. Affected by the epidemic, some enterprise's cash flow is tight, and thus are in urgent need of emergency financial rescue, meanwhile, some enterprises show tenacious vitality; after the restart of manufacturing, their demand for financing after is strong. In order to stabilize the employment of enterprises, as the country's first comprehensive financial reform pilot area, Wenzhou explores actively, starting from the "asset" identification, how to make evaluate the asset as credit, and how to capitalize credit. As a result, the city extends the scope of mortgage and credit loan benefits to open up the financing blocking points for small micro-enterprises, such as the lack of collateral, high-security costs, and so on.

The awakening of "sleeping assets" stimulates the development of small micro-enterprises momentum greatly. "Our business model requires advance-payments in customer expenses, and the mismatch between high-growth volumes and inefficient capital turnover is the biggest barrier to our growth." Mr. Lin, the finance director of an environmental resource utilization company in Wenzhou, told reporters that this enterprise used its two identified materials, waste emission permits and provincial high-growth technology-based small and medium-sized enterprise evaluation, as "grants", and with only those written materials, it obtained a loan of 3 million Yuan. In addition, Wenzhou also carries out a "pre-credit" credit evaluation, sets up a small and micro-enterprise credit "assignment" model, which through the credit rating evaluation system, meets the financing conditions of small and micro enterprises for early credit, greatly enhances the convenience of grant.

The scope of the grant is now as broad as possible, but the risk-control is not relaxed. Wenzhou sets up an "in loan process " examination for the record under the principle that so long as it can be put on records, the loan assets to apply for loans should be documented, to ensure the entrusted assets and to avoid giving ownership transfer or duplicating guarantee filing. It also establishes a "post-loan" risk relief mechanism, takes measurements such as joint disciplinary, public exposure, and key supervision to strengthen the "soft binding force" on enterprises that fail to trust and to maximize the realization of bank financial claims and financial environment stability.

(Edited by Ye Ke, Translated by Wu Hongjie)