Since Liangjiang New Area gained the approval of carrying out a commercial factoring pilot project in the August of 2013, commercial factoring businesses have developed rapidly in the city. By the end of 2014, 27 commercial factoring enterprises were launched in Liangjiang, with a registered capital of 2.64 billion yuan ($42 million).

The Liangjiang New Area organized a work conference to discuss the issue of constructing two new financial industries, and providing support to small and medium-sized enterprises in raising capital.

Liangjiang has been strict with shareholders' equity and executives' qualifications and registered capital since the pilot project of commercial factoring began to ensure that all entering enterprises have strong investment and management abilities.

Currently, more than 500 commercial factoring enterprises, covering areas including automobile, electronic information, medical, logistics and business, are discussing with the city about entering its Liangjiang New Area.

According to the Liangjiang Financial Leasing Company and Chongqing Yashi Financial Leasing Company, the financial leasing and commercial factoring industries can complement each other.

"The commercial factoring market is huge. Commercial factoring and financial leasing are both developed for the purpose of serving the real economy. Banks will need to create a credit platform and strengthen the risk control, constructing Liangjiang into the China’s western commercial factoring center," said He Yousheng, vice director of the Liangjiang New Area Administrative Committee.

Edited by Jacon Hooson