“previously, businesses had little idea of the cost of integrated financing of loans.” the financial director of jinjiang spearhead automobiles, ltd., zhou haiping, told the financial times reporter: “after the introduction of the pilot demonstration of the cost of integrated financing for enterprise loans, the client manager of jiangsu bank came to the door and took a list of the costs of each project listed in detail, which is clear and very useful to enterprises in calculating the cost of integrated financing for loans.”
The cost of the loan is poorly managed at the start-up stage and is often not well understood and only focuses on interest rate costs. The landing of “lending paper” has facilitated the fine-tuning of the financial management of enterprises。
In the process of piloting the cost of identifying integrated financing for enterprise loans, banks have taken the initiative to help businesses to adjust their own development and match more favourable policies, further reducing the cost of enterprise financing。
The process of identifying the costs of integrated financing of enterprise loans is now in an orderly process of scaling up in jiangsu province. By the end of the first quarter of 2026, jiangsu province had accumulated a total of 350,000 specified business loans with a total cost of 2. 5 trillion yuan。
The loan paper makes money more trusting
“in march 2025, the jiangsu provincial implementation programme was established, with piloting in four municipalities, and in july, the express work was extended to all 13 municipalities in the province, and in november, to all financial institutions.” the head of the jiangsu provincial branch of the people's bank of china said to the journalists。
From policy interpretation to refinement, from simple-cost loans to complex business varieties, from simple to difficult to promote policies that can be effective, the various market players benefit equally。
In july 2025, jinjiang launched a pilot project to identify the costs of integrated financing of enterprise loans. The branch advanced this work as a key enabler to implement the “feed-down” and optimize the business environment, which has continued for 10 months from its launch last july to april this year. During this 10-month period, the financial institutions of the town's banking sector continued their express work, with a cumulative total of 6530 service enterprises。
“acceptance by banks and enterprises, from `passive cooperation' to `active application', is incremental and presents a process of `quiet before approval'.” the vice-president of the town and town branch of the people's bank of china, dai kai, said。
From the bank side, the initial concern of “multiple processes, additional burdens” prevailed, but as work progressed, more and more banks found that explicit work was not “probleming” the bank but “crediting it”. For an enterprise, the word “understand” is replaced by the word “assurance”。
The vice-president of the chamber of commerce and industry, mansai, indicated that the work had gradually been internalized as part of daily compliance. For banks, while operating costs have increased modestly in the short term, such as training inputs and process optimization, in the long term, the adoption of the "standard operation + transparency service" has strengthened both compliance control capabilities and client stickiness and brand reputations, building the trust building blocks for subsequent business expansion。
“lending paper” promotes mutual trust and reduces efficiency gains
The analysis of wang yuhong, vice-president of the jiangsu bank, concluded that the information asymmetries between silver companies had been effectively mitigated through transparent cost presentations and detailed communication explanations, the transparency of financing had increased significantly, and the foundations of mutual trust had been strengthened, providing a good basis for building healthy and harmonious silver relationships。
“increased transparency and information disclosure of credit services have been significantly enhanced, client trust has been enhanced, regulatory policy orientation and business environment optimization requirements have been highly compatible, and long-term positive developments in monetary relations have been facilitated.”。
At the end of last year, the bank of permanent farmers and businesses, jinjiang branch, issued 1 million yuan in micro-loans to jiangsu huimind smart equipment technology co. Ltd., in the form of joint and several liability guarantees provided by jiangsu province credit enhancement limited, with a guarantee rate of 0. 2 per cent borne by the enterprise. At the business application stage, the customer manager systematically calculates the costs of integrated financing and submits a list to the enterprise detailing the costs and the calculation process. The head of the enterprise said that clear cost would make it clear to them that loans were being made and that a sense of trust in banks would be enhanced。
From the feedback of many enterprises, there has been a marked increase in the overall acceptance of enterprises, ranging from their initial unfamiliarity to their gradual initiative to ask questions and check lists。
“a considerable number of enterprises have accepted explicit costs twice or even more, and have developed a well-established habit of banking interaction.” decai said。
The loan paper becomes a policy “link”
Efforts to articulate the cost of integrated financing for enterprise loans are not limited to informing the enterprise of costs, but focus more on helping the enterprise to optimize costs and increase the sense of access to financial services. The concerned head of the jiangsu provincial branch of the people's bank of china stated, on the one hand, that the “prior note” shows not only the costs incurred by the enterprise itself, but also the banks' reduction in the fees collected or paid on behalf of the enterprise, which further enhances the mutual confidence of the bank; on the other hand, banking institutions are encouraged to be proactive in understanding the cost of financing the enterprise, matching preferential policies and products, such as facilitating the declaration of preferential government guarantees in the region, saving the expense of guarantees for the enterprise, etc., and effectively shifting the results of the stated work to a reduced value and optimizing the market financing environment。
“the `list' is linked to `entitlement policy', making `loan note' the `link' of policy. And we turn the "loan paper" process into an opportunity for banks to proactively comb out the suitability of business policy."。
In cooperation with a slurry equipment company, the yujiang chamber of commerce and industry, while completing the list jointly, found that the company met the requirements of the micro-renewal policy and immediately initiated a special process for renewal of the loan, thus preventing the enterprise from using high-cost funds to cross the bridge. The follow-up combo found that the firm had been awarded an excellent new rating and that the interest rate on the loan had been reduced immediately from 2. 9 per cent to 2. 4 per cent, in line with the relevant policy, and that the cost of integrated financing had fallen directly by 0. 5 percentage points。
In issuing loans for the purchase of new plants and equipment, jiangsu bank and jiang dino environmental materials ltd., the bank has made clear the structure of the costs borne by the bank through “limitated loan paper” and has taken the initiative to help enterprises apply for interest rates on projects that meet the policy of financial discounts for manufacturing. The interest rate on loans for the purchase of equipment for the enterprise has benefited from a discount of 1 per cent for “saving finance plus 1 per cent for municipal finance”, which is added to the policy dividend on the basis of “limitated loan paper”。
Thus, the closed circle of “checklists — find policy — make money again” makes “loan note” not just a “cost list”, but a heavy “goods list”。
It can be said that, through express work, banks are able to identify business financing difficulties with precision, optimize product design and simplify the approval process, so that enterprises not only count but spend less。
“the services provided by jiangsu bank were further increased after the express policy was put in place. In accordance with the relevant policy, jiangsu bank has proposed to us a rational financing proposal。
Lu xiaojun, the financial head of the limited liability company yujiang dynamite aluminium, said: “the guarantees, assessment fees, etc. Associated with the loan have been borne by jiangsu bank, which does not need us to bear the burden, and the burden on the enterprise has been significantly reduced. Years of cooperation, with familiar loan processization making it easier for enterprises. Banking services are better when the cost of integrated financing of enterprise loans is specified.”
“we have always responded positively to the important mission of reducing fees and concessions as the real economy of banking services and the pursuit of inclusive finance. In carrying this work forward, i have accrued a total of $2. 64 million in third-party services for various types of clients, such as mortgage registration fees, assessment fees, asset insurance premiums, notary fees, etc。
It hurts a little
A policy that benefits the enterprise is critical in terms of location and effectiveness. To advance the process of identifying the costs of integrated financing for enterprise loans is not simply a “fill-out form”, but involves systematic work on policy coherence, process optimization, science and technology empowerment, and synergy between finance and industry。
The fact that many of the financial institutions in the city are in charge of financial institutions and their client managers have told journalists that while moving forward, there have been difficult points, such as the weak financial knowledge of some micro-enterprises, which confuses the interest rates on loans with the cost of integrated financing; the uneven collection of third-party fees, asymmetric information and difficulties in accounting; and the reluctance of some enterprises to disclose third-party fees and their impact on accuracy。
The relevant heads of the jiangsu provincial branch of the people's bank of china have indicated that they will promote the cost of financing the loan of enterprises in a firm manner, guide financial institutions to combine their efforts, improve internal processes and standardized presentation, provide more efficient financial services, and help to create a sound financing environment; strengthen policy synergies with government departments, explain to enterprises the significance of the cost of financing the loan, and encourage them to consult and cooperate actively, seek optimal financing products and policy support and reduce the cost of financing in a reasonable manner。
Leung song told journalists that they need to expand their coverage from a narrow to a broad range of coverage; intensify their advocacy and awareness-raising efforts from a shallow to a deeper perspective; and promote e-learning, e-learning and business experiences, and the inclusion of more banks in credit systems and electronic contracting processes。
The relevant officials of the financial institutions in the town of tangjiang have advised journalists to ensure that businesses are truly well financed and clearly informed through improved systems, process re-engineering, system optimization and training。
