China’s credit guarantee firms – which help SMEs get financing from banks – are ushering in a stage of fast growth since the credit squeeze on banks started.
Last year in Shenzhen alone, these companies brought in handsome revenues of over 100 bn yuan, helped 56 firms go public and are currently assisting another 243 companies to do the same, reports Shenzhen News.
On a roll
Michael Ji, national BD manager of Jobmet Technology, says many credit guarantee companies are hiring especially in business development roles. These firms are targeting expansion in various provinces to obtain maximum coverage.
Government policy has been supportive. Last year China put in 4 bn yuan to support the development of guarantee firms. That same push can be seen at the local level. In Hebei province for instance there are plans to establish 500 guarantee firms before 2015.
Show some SME love
With demand in the SME market looking very healthy, guarantee companies are keen to diversify their products and they need talent for this. So which candidates are in demand? Ji says those with good government relationships are essential because the role is highly sensitive to policy changes. Those coming from a banking background are also preferred. Some high-level banking employees have already made the switch – Fullerton Guarantee for instance has managed to attract such talent.
Another potential area of growth are risk and compliance roles. SME loans are typically seen as being riskier so risk control professionals from the big four will be greatly valued, adds Ji.