AliFinance Provides Loans to Microenterprises in Guangdong
Ebrun, 2/20/13
Alibaba Financial, the SME financing arm of Chinese e-commerce firm Alibaba Group, reported recently that its AliLoan small-loans product will begin issuing loans to small enterprises and microenterprises in the Guangdong region at the end of February. The loan product, which offers businesses up to RMB 3 mln, requires no collateral and uses SME data from Alibaba's e-commerce platform in evaluating loan applications.
Alibaba Financial's small- and micro-loan products are differentiated by target platform, with microcredit loan products split between C2C & B2C e-commerce site Taobao and AliLoan. Taobao loans offer credit loans and purchase order loans for businesses using Taobao and B2C sister site TMall, and are already available to all Taobao and TMall vendors in Guangdong province. The new AliLoan products will primarily serve small enterprises and microenterprises using the Alibaba B2B platform.
Alibaba Financial credit loans will initially be available to all paying members of Alibaba.com in Guangdong — that is, to Alibaba TrustPass and Alibaba Gold Supplier vendors. There are more than 60 mln registered users of Alibaba's China site at present, an estimated 10 mln or more of them in Guangdong. Of these, nearly 300,000 are paying members. Alibaba Financial representative Wang Tong said that after the launch of AliLoan in the Guangdong region, Alibaba Financial will expand AliLoan coverage to SMEs in the Bohai, Central China, and Western China regions. Combined with existing AliLoan coverage in the Yangtze Delta region and the upcoming coverage in the Pearl River Delta region, AliLoan could implement full coverage of China's SME-rich regions by the end of the year.
Editor's Note: For more background on this topic, please see "Alibaba.com Provides Loans to Regular Users" MD 8/28/12 issue.
Keywords: Wang Tong e-commerce financing Internet Alibaba Group Alibaba Financial
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