Funding comes to Chinese SMEs with Chained Finance
Like many of their counterparts in the world, China’s small medium enterprises (SMEs) are an economic force employing a sizeable percentage of the workforce and supplying much needed products and services to consumers and larger enterprises. But like many SMEs elsewhere these smaller businesses also struggle with staying afloat – balancing the need to meet customer orders while paying their suppliers and staff. Many also struggle to find financing to stay in business.
Two Chinese organizations, Dianrong and FnConn, are banking together to launch what they claim is China’s first blockchain platform for supply chain finance. Dianrong originates more than US$300 million in monthly assets for 3.7 million retail lenders. Foxconn Technology group subsidiary FnConn provides loans and financing solutions to suppliers, including Foxconn's upstream and downstream supply chain.