OREANDA-NEWS. August 09, 2011. Bill is one major fund-raising tool that has become increasingly popular among small-and-medium enterprises (SMEs) to relieve the funding burden in the last few years. The numerous benefits of bills are convenience, fast transfer and low financial cost. Since its inception, ICBC Bill Department, being the first institution dedicated to bill business in the country, underscores its mission to support the growth of SMEs to drive its bill business through continual commitment in customer services and social responsibility, reported the press-centre of ICBC.

The Department sets its sight to be a bank for SMEs looking for solutions to their capital needs. Beginning from this year, ICBC Bill Department leverages its competitive advantages to allocate credit and monetary resources for extending bill financing service to SMEs. While ensuring full availability of credit facility to SMEs, preferential interest rates are granted in a bid to address their issue of working capital shortage. During the first half of 2011, ICBC Bill Department has processed outright inter-bank discount to a total of over RMB 117 billion. Nearly 70% cash generated was for SMEs. The Department has bought 800+ undue bills directly from over 100 small-and-medium enterprises totaling more than RMB 3 billion. Meanwhile, The Department has also re-discounted 198 electronic bills for SMEs involving RMB 1.088 billion and maintaining robust growth in its SME bill business.

It is worthy of note that, ICBC Bill Department takes full advantages of its domain expertise to launch innovative bill financing service to SMEs, who warmly welcome the services. In a move to better meet their need for obtaining working capital "in a short time, in a frequent and quick fashion", ICBC Bill Department pushes ahead electronic bill financing service to boost the bill liquidity and business efficiency. Meanwhile, on top of the "Bill Winner" service newly launched, ICBC Bill Department steps up its innovation on other portfolio products such as bill discounting with interest paid by buyer, or discounting with partial recourse as one option to extend more credit to SMEs.

SME bill service is always a key agenda of ICBC Bill Department, said an executive with the Department. Comprehensive bill services are launched while providing finance to the SMEs. One example was the training and seminar organized by the Department to assist financial persons from SMEs in checking new edition bills and sharing experience. This was a response to many SMEs who wish to gain more knowledge on the identification of 2010 new edition of true bank acceptance draft and risk control. The seminars helped SMEs prevent risk while conveying the latest method in checking bills.