Wang Li, a garment businessman in Dandong, who has suffered capital turnover difficulties has turned to a micro-credit company for help recently. Only one day after turning in his application, he received a 30,000 yuan ($4,818) loan on credit rather than through mortgage guarantees.

By using innovative fiduciary loan guarantees, micro-credit companies in Dandong have helped many small- and medium-sized enterprises deal with financial difficulties, Yanglujiang Evening reported.

"With the support of micro-credit companies, I don't worry any more," Wang said.

Micro-credit companies stay competitive by issuing small loans quickly.

The companies in the city pay attention to both economic benefits and social benefits. The majority of the loans are issued as business start-up capital for laid-off workers or as additional input for business expansion.

In addition, preferential interest rates and relaxed mortgage terms are offered to famers and laid-off workers as well.

By the end of September, Dandong's 20 micro-credit companies had 580 million yuan ($93.09 million) in outstanding loans, a 200 million yuan increase compared to the beginning of this year and 260 million increase year-on-year, marking a 52.6 percent and 81.3 percent increase, respectively, according to the Dandong Finance Office.

In the first three quarters of this year, the 20 micro-credit companies issued a total of 990 million yuan in loans, benefiting eight million SMEs and individually-owned businesses.

Meanwhile, the operating turnover of micro-credit companies has amounted to 46.52 million yuan during the first three quarters, paying taxes totaling 30.04 million yuan.

Edited by Zhao Qian and Michael Thai