BEIJING, September 19, 2016 /PRNewswire/ -- G20 SME (small-and-medium enterprise) Finance delegates visited Chinese B2B e-commerce marketplace DHgate.com's headquarters in Beijing as part of the G20 SME Finance Forum so they could learn about DHfinet, DHgate.com's financing mechanism that provides supply chain micro loans to SMEs, with no collateral or guarantor required. DHfinet was recently included in a policy paper to G20 economic leaders as a case study of an innovative financing mechanism that could help global SMEs in desperate need of financing.
DHfinet
DHfinet supplies e-commerce micro-loans to small-and-medium enterprises so they can scale up their businesses, with no collateral or guarantors required. This is accomplished through an especially innovative mechanism. After borrower authorization, DHgate.com provides partner financial institutions with big data generated on their platform, so that it can be analyzed to determine risk, in order to grant micro loans to SMEs.
To realize this process of supplying micro loans based on big data, the SMEs applying for the loans must have already done business on DHgate.com, generating an astounding amount of data. The data generated is not just limited to transaction history; buyer feedback, logistics data, and inventory data are all factored into risk assessment.
Providing Finance to SMEs
The prosperity of SMEs is hindered by limited access to finance. Conventional financing fails to meet the full needs of SMEs, who endure more financing obstacles than larger firms. Higher interest rates, strict collateral guarantee requirements, and non-inclusion from credit ratings all make it significantly more difficult for SMEs to secure the funding they need to operate and grow their businesses.
In addition, current collateral frameworks are based mainly on immovable assets, such as real estate and land, often unfairly deprive SMEs. The G20 SME Finance Forum estimates that the total unmet global demand for credit by SMEs in 2016 is $3 trillion, with an astounding 200 million SMEs that lack access to credit.
About DHgate.com
DHgate.com is the first to market and the biggest transactional cross-border B2B e-commerce marketplace in China, aiming to provide global buyers with quality products at competitive prices. Founded in 2004, DHgate.com has approximately 12 million global buyers from 230 countries and regions, with 1.4 million global sellers offering 40 million products. DHgate.com's business enables buyers to directly access global manufacturers of the world's top brands with rich product selections. DHgate.com is an all-in-one platform with integrated services for international logistics, cross-border payments, internet financing, etc. DHgate.com's US, UK, Spain, and UAE product distribution warehouses allow for 24 hour delivery and convenient product returns & refunds, bringing great convenience to buyers at http://www.dhgate.com.
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