Zhongguancun Bank and Zhongshang Huimin E-Commerce Co Ltd reached strategic cooperation agreement on March 23 to provide online financial services for offline and online users throughout the supply chain.

As the nation's largest community-based service e-commerce platform, Zhongshang Huimin is expanding its business of fast-moving consumer goods by using a business to business (B2B) mode.

The two sides will work on a supply chain financing product that is based on the integrated data of Zhongshang Huimin's B2B platform and uses scientific algorithms to intelligently analyze the platform's big data.

Zhongguancun Bank and Zhongshang Huimin E-Commerce Co Ltd reached strategic cooperation agreement on March 23. [Photo provided to chinadaily.com.cn]

This effort can provide automatic online screening, credit approval and auditing of online suppliers and help small and medium-sized suppliers get operational funding, which will promote the healthy, sustainable and stable development of Zhongshang Huimin's business ecosystem.

More than 20 suppliers have signed contracts for the product, which will be further expanded to the company's more than 2,000 suppliers in China.

Suppliers' loan quotas will vary according to their order size. The loan's interest is calculated on a daily basis and suppliers can submit a self-service application through the Zhongguancun Bank APP.

More than 20 suppliers have signed contracts for the financial product. [Photo provided to chinadaily.com.cn]

Zhang Yichun, president of Zhongshang Huimin, said that through financial services oriented to enterprises, business owners and residents, the two sides will eradicate factors that restrict the development of enterprises, such as financing difficulties, high costs, and backward services in the industry.

Guo Hong, president of Zhongguancun Bank, said that the cooperation is also an important step for Zhongguancun Bank in promoting the implementation of the National Inclusive Financial Policy.

Since its establishment in June, 2017, Zhongguancun Bank has been implemennting an investment-lending business that focuses on equity-based loans, practices inclusive finance, and powers supply chain and scenario finance.

A discussion is held at the signing ceremony between Zhongguancun Bank and Zhongshang Huimin E-Commerce Co Ltd. [Photo provided to chinadaily.com.cn]