Alibaba Group is out to make it easier for buyers and sellers on Alibaba.com, its B2B e-commerce marketplace, to conduct business.
Alibaba announced Wednesday a financing program and credit reporting service for small and mid-sized companies engaged in cross-border trade through Alibaba.com. More than 25 global financial institutions and credit reporting firms are working with Alibaba to provide lending and credit-reporting services, Alibaba says.
Alibaba says it already provides credit-reporting data to buyers and suppliers, and that later this year will launch Credit.Alibaba.com as a service where overseas buyers on Alibaba.com can check the credit ratings of suppliers to decide whether they want to do business with them. Ratings will be based on information from outside firms, Alibaba’s corporate data and public records, Alibaba says. Chinese suppliers will have a choice in whether they want to join Credit.Alibaba.com.
“By building up the credit profiles of Chinese SMEs based on business-related data, Alibaba.com’s credit reporting service can help overseas buyers identify trustworthy trading partners and provide Chinese suppliers access to innovative financing options,” says Sophie Wu, president of Alibaba.com. “It’s an initiative that shows how we strive to better support the financial needs of SMEs that may be facing cash flow challenges and supply chain financing.”
China-based financial institutions involved with this program include: MYBank, Ping An Insurance, Bank of China, China Merchants Bank, China Construction Bank and Bank of Shanghai. Alibaba did not name all the financing and credit reporting firms yet involved with Credit.Alibaba.com.
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