Liangjiang pioneers innovative IP loan program

In a groundbreaking initiative to tackle the financing challenges faced by tech-focused small and medium-sized enterprises (SMEs), Liangjiang New Area has introduced the "Zhiqi Loan", the first of its kind to specialize in intellectual property (IP) financial services nationwide.

This innovative financial offering is designed to help businesses rapidly convert IP into tangible assets, effectively transforming "knowledge into cash", as noted by a local official.

"Previously, securing loans was challenging due to banks' aversion to risk. Now, with the innovative mechanisms of the 'Zhiqi Loan', banks are more willing to lend, reducing our financing costs and boosting our confidence in growth," said Wang Youqiang, an IP engineer at Cloud Child Technology.

The "Zhiqi Loan" uses advanced model evaluations and a "whitelist" credit system to implement differentiated risk pricing, thereby reducing financing rates. Companies can enjoy interest subsidies of up to 25 percent of the loan interest rate after pledging their IP, significantly cutting financing costs.

The application process is streamlined: companies submit a loan application and undergo an IP assessment, which is followed by a review from the lending institution. After the companies complete the IP pledge registration process, they receive their funds.

"The 'Zhiqi Loan' represents a significant step forward in deepening IP financial innovation among government, banks, and enterprises. It uses policy support to create a multiplier effect, making bank-enterprise connections more precise and financing more accessible and affordable," said a representative from Liangjiang IP Service Center.

In recent years, Liangjiang has consistently enhanced its IP financial service mechanisms, with cumulative pledge financing surpassing 2 billion yuan ($275 million). The area is also exploring IP securitization as a new frontier in IP financing.

Additionally, Liangjiang is supporting enterprise innovation and development through direct financial incentives. In 2024, the area disbursed 15.14 million yuan in support funds, benefiting over 200 companies.