Chinese e-commerce giant Alibaba Group joined hands with seven domestic commercial banks to launch an updated credit loan with the highest line of credit set at CNY10 million (USD1.6m), up from the previous limit of CNY1 million when the first credit loan product was launched in 2011.
Based on the transaction records of corporate vendors on Alibaba’s B2B site, commercial banks can gain access to the business situation and credit history of small and medium-sized vendors.
Vendors that have secured export orders through onetouch.alibaba.com, a special section for B2B export vendors on Alibaba, will gain a credit line for each order. For every one US dollar worth of order, they can receive 1 yuan of loan.
(Source: Shanghai Daily)