CEPD Approves Value-Added-Service Financing Plan for SMEs

      On May 14, the Council for Economic Planning and Development approved a value-added-service financing plan for small and medium enterprises that will help SMEs solve their financing problems, boost the transparency of their financial information, and strengthen their structural stability. The new plan also encourages the upgrading of SMEs by promoting the establishment of a financial early-warning mechanism and reinforcing the restructuring system.

        The plan will run for five years, and in addition to helping SMEs in general to resolve financing difficulties, it will strengthen financial assistance to start-ups, micro-companies, and firms that are weak financially but have the potential for development. The content of the value-added financing plan includes the following key points:

1.          Diversified consulting services: A diversified range of consulting services will be offered, through the use of self-diagnosis DIY optical disks, the provision of “outpatient” health diagnosis, and the establishment of an e-consultation website, to help more start-ups, micro-enterprises, and businesses with early-stage ailments to resolve financing-related problems.

2.          Deepened diagnostic guidance: When SMEs encounter financial difficulties, joint financial diagnostic guidance will be used to help them obtain the operating funds they need from financial institutions. Guidance in improving operations will be offered during the credit-extension process, along with post-loan monitoring, so as to heighten the willingness of banks to extend loans and create a mutually beneficial relationship between SMEs and financial institutions.

3.          Expanded manpower training: Professional financial training, financing guidance training for financial personnel, and financial consulting training and certification courses will be organized to expand the scope of training and strengthen the overall guidance capability needed by SMEs to cultivate financial skills and upgrade the quality of their financial reports.

4.          Establishment of a financial early-warning system: An information platform linking group enterprises will be set up, and group enterprise financial monitoring and SME restructuring guidance will be carried out in order to reinforce the SME financial early-warning mechanism and help enterprises operate normally during their period of transition and recovery.

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