Montreal, Quebec--(Newsfile Corp. - January 21, 2019) - Peak Positioning Technologies Inc. (CSE: PKK) ("Peak" or the "Company") today announced that its newly created Asia Synergy Credit Solutions ("ASCS") subsidiary, which recently took over the credit outsourcing operations of Wenyi Financial Services Co. Ltd. ("Wenyi"), has entered into a partnership agreement with Wuxi Union SME Guarantee Co. Ltd. ("WU") whereby WU will guarantee bank loans to small and medium-sized enterprises (SME) serviced by ASCS for an aggregate amount of up to CAD$1B.
ASCS receives a service fee amounting to approximately 6% to 8% of the amount of the loans it services, and plans to use the Company's Cubeler commercial lending platform to help find and qualify loan candidate. WU's agreement with ASCS will initially cover loans serviced by ASCS on behalf of Wuxi Rural Commercial Bank ("WRCB") (http://www.wrcb.com.cn/), but is expected to eventually cover loans serviced on behalf of other WU partner banks in the future. WRCB was established in 2005 and its shares are listed on the Shanghai Stock Exchange under the ticker: 600908. With over 100 locations in Wuxi and in neighboring towns, WRCB has made it its mission to revitalize the local economy by paying particular attention to the needs of entrepreneurs and local small businesses.
WU (http://www.lhdb.com.cn/) is a Wuxi government-backed guarantee or insurance company created in 2004 to help make it easier for SMEs to receive loans and credit from China's banks. Since then, WU has partnered with 19 banks to provide them and their clients with trade financing guarantee and loan guarantee services. WU's 19 partner banks include:
- Agricultural Bank of China
- Bank of China
- China Construction Bank
- Industrial and Commercial Bank of China (ICBC)
"There's been a concerted effort in the past couple of years from the highest levels of the government in China to help SMEs access the funds they need in order to be successful, because of how important they are to the overall economy", commented Johnson Joseph, President and CEO of Peak (see 2018 China Global Television Network article here). "The idea of making it easier for SMEs to obtain loans, while reducing the efforts required by lenders to find and qualify them, is precisely why we brought the Cubeler platform to China. With this agreement protecting our lending partners from loan defaults, we now have a truly unique service offering that we believe will be extremely appealing to China's commercial lending industry. We look forward to continuing to work with WU and eventually all of its partner banks to make commercial lending more efficient", concluded Mr. Joseph.
Under the terms of the agreement, ASCS will provide WU with a security deposit representing 10% of the continuous aggregate value of the loans it services. Peak subsidiary Asia Synergy Financial Capital and former Wenyi now ASCS financial partner Qianzhou Small Loan Co. Ltd. will provide ASCS access to funding to meet its security deposit obligations to WU.
About Peak Positioning Technologies Inc.:
Peak Positioning Technologies Inc. is an IT portfolio management company whose mission is to assemble, finance and manage a portfolio of promising companies and assets in some of the fastest-growing tech sectors in China, including fintech, e-commerce and cloud-computing. Peak provides a bridge for North American investors who wish to participate in the continued digitization of China's industrial sectors through the latest advancements in technology. For more information: http://www.peakpositioning.com
For more information, please contact:CHF Capital Markets
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