(Yicai Global) May 8 -- More than 80 percent of China’s small and micro enterprises and self-employed workers said that securing loans from financial institutions has become easier and more convenient, according to the findings of a new survey.

The survey by the All-China Federation of Industry and Commerce showed that 32.4 percent of small businesses tapped three or more financing channels, while 18.7 percent of micro firms and the self-employed used three or more, and 28.8 percent had used two.

The greater diversity of channels and the financial sector’s technological advances have eased the way for smaller businesses to tap funds. The survey also showed that private and internet banks are important lenders for small and micro operators. Nearly 80 percent of micro firms and self-employed individuals with financing needs got business loans through online banks during the coronavirus pandemic.

Such businesses need relatively small amounts of money and usually do not meet the business loan threshold of traditional lenders.

Tu Wen, deputy director of ACFIC’s research department, predicts that small and micro firms needing credit of between CNY1 million (USD141,335) and CNY10 million will mainly turn to online lenders, which can also cut their financing costs.

Digital finance also indirectly accelerates the digital transformation of such companies, Tu added. According to the survey, 16.6 percent of these firms and the self-employed started working online after the virus outbreak, with 12.8 percent telecommuting.

Nearly 150,000 small and micro enterprises and self-employed individuals participated in the survey, the largest sample size by far.

Editors: Tang Shihua, Peter Thomas