For a long time the small enterprises have grappled with the issue of finding collateral backing the loans. On the contrary the banks are embarrassed that they cannot provide financing support to them even though the market is there. In view of the stalemate, ICBC moves faster in the innovation of products and services in trade finance, particularly a range of products designed for the small enterprises. The growth of the business is impressive. Until the end of April, ICBC has granted up to RMB 55.012 billion trade facility to small enterprises this year with a balance of RMB 77.427 billion, representing a jump of 34.35% from the beginning of the year. The loans play a significant role in ameliorating the working capital strains of small enterprises. While the business is gathering pace, ICBC keeps the non-performing rate of extending trade credit to small enterprises to a good level of 0.14%.

Compared to the conventional corporate loans based on the company's credibility, trade finance is different in the strictest match during the full process, how the logistics flow and the flow of funds are putting together in a small company. ICBC trade loans are very suitable for small enterprises in smaller scale, few pledges or collateral and low credibility, since these loans are very flexible in tenure, credit line, conditions of use and guarantee option. This is also the reason why ICBC taking trade finance service as one important measure to open another channel for small enterprises to raise funds.　

To small enterprises, loans can be obtained ideally "in a short time, in a frequent and quick fashion". Thus, ICBC has taken improvement steps to respond faster to customer needs and raise the service standard. That includes the streamlining of business process in authorization, credit rating and granting, collateral/pledge appraisal and loan approval. ICBC has taken two steps in product innovation. First is to launch four ranges of financing products of "commercial property credit", "cargo rights credit", "account receivables credit", "financial bills credit". The new products are good solution for the dilemma faced by the smaller companies with insufficient pledge or collateral for the loan. Another step is to increase the service capability by offering tailored solutions. Different portfolio catered for different requirement of the customers by the positioning and timing of trade finance products in the markets.

All trade finances have actual transaction basis. Hence, it is easier to control the credit risk since the real purpose is clearly reflected. Beginning from this year, ICBC pushes ahead the supply chain finance business while meeting the rules of "loan directly transferred to the borrower's transaction part" and "fiduciary payment" stated in the "Three Measures, One Guideline" laid down by the China Banking Regulatory Commission. Focus has been placed on the upstream and downstream customer groups of the core enterprises and in top projects. Tailored solutions using combination of the products on supply chain trade finance are offered to meet the financial needs of this type of small enterprises. Meanwhile, ICBC set up closed management system on the enterprises that have real trades financed by ICBC, starting from the transaction to the settlement of the trade. By monitoring the loan purpose and credit risk, ICBC and the enterprises achieved win-win. Changqing Oilfield was a case in point. ICBC Shaanxi Branch offered trade finance solution to its upstream oil drilling companies and material suppliers in line with their business cooperation mode and settlement characteristics. The solutions were warmly received by these small enterprises. Changqing Oilfield is located in the energy and petrochemical base in North Shaanxi. Over 1000 upstream enterprises are providing oil drilling engineering, equipment and material to the company, and most of them are smaller companies. Advance payment is typical in their daily production. ICBC took the "confirmed order volume" as the basis of factoring to offer "order financing, + invoices later for factoring", a trade finance proposal designed to meet the funding needs of these upstream smaller companies so that they can sustain development. Within a short period of few months since the start of the business at the end of last year, ICBC has granted trade facility of over RMB 400 million for these small enterprises.