Around the new year, private enterprises are usually troubled financial problem. However, the enterprises in Yuelong Community of Ninghai do not have this problem, for they can have loans from the mutual fund of the commercial chamber of the community.

"I get several calls every day asking for loans," said proudly Kong Yuenan, Secretary-general of the chamber. In the 17 years after the establishment of the fund, 2,310 loans were granted, involving 2.2 billion yuan with zero risk. This practice is known as the "Yuelong Experience" of Private Loans for Enterprises in Ninghai.

Kong Yuenan, Secretary-general of the chamber, is 72 years old and hale and hearty. When an enterprise needs a loan, it should first give Kong Yuenan a call. Then, the legal person of the enterprise and the guarantor should fill in a form and the then the loan is granted. As time goes on, and on-line transaction of loans is adopted and the enterprises with no membership can also apply for loans and the loans are often millions in sum. And what is not changed is that it is Kong Yuenan who makes the decision.

"The entrepreneurs trust me," says Kong Yuenan. Before he was Secretary-general of the chamber, Kong Yuenan had worked as a treasurer in the trade union of the town for over 20 years. Among the local entrepreneurs, he is a trustworthy man. He is proficient in his work. He is very acquainted with the credit and asset quality of every enterprise in the town.

"I know it is not easy for enterprise to get loans. I'll do what I can to help them but I'll do my best to avoid risks," says Kong Yuenan. Every year, he will refuse 7 or 8 applications for loans. A few members have even cancelled their membership.

"In the hard financial situation this year, the enterprises in Ninghai are so consolidated. This solidarity comes from the culture of the locals," remarks a membership entrepreneur. "One would never evade his debt to the fund, otherwise he would have no face to live in Ninghai for his whole life."

This is the credit established among acquaintances. Yuelong Community used to be the place for the county government. It is the center of the industrial economy of Ninghai. The entrepreneurs are acquaintances for many years. An entrepreneur says that he would ask for help to the fund than to others.

The fund also in return strengthens the credit. Kong Yuenan says, receiving an application, he would first check the reputation of the applicant and then the application forms. The trustworthiness of the applicant is the key. And every loan reinforces the credit.

In 2003, the Federation of Entrepreneurs of the Town was reorganized as the Commercial Chamber of Yuelong Community. Now, the Chamber has 148 members and only 48 are the core enterprises of the fund, all of them being locals of Ninghai. In this atmosphere of mutual trustworthiness there is no room for risks of private loans.

This year, the fund has granted loans of 650 million yuan to over 100 enterprises, without a single bad debt. The key to this is the enterprises' credit formed in the 17 years.