"We are now capable of building a new factory and our company will be further expanded," said Zhong Shixiang, director of Quzhou Haihe Apparel Co.

Early this year, Haihe planned to purchase a new facility, but the plan ran aground because of insufficient working capital.

In June of this year, in order to help out with the financing problems of small and micro-sized businesses, Kecheng Rural Commercial Bank launched the first fixed asset financing product in Quzhou.

According to a bank staff member, the financing product allows Quzhou companies to apply for a mortgage loan when purchasing industrial occupancy, which solves cash flow problems caused by one-time big expenditure.

Last month, Haihe received the first mortgage of 800,000 yuan ($113,000) from Kecheng Rural Commercial Bank.

As of mid-July, the bank has offered two mortgage loans totaling 1.58 million yuan.