legal ground
Twentieth "People's Republic of China (PRC) SME Promotion Law"
When small and medium-sized enterprises apply for secured financing with accounts receivable, the payer of their accounts receivable shall confirm the creditor-debtor relationship in time and support the financing of small and medium-sized enterprises.
The state encourages small and medium-sized enterprises and payers to confirm the relationship between creditor's rights and debts through the accounts receivable financing service platform, so as to improve financing efficiency and reduce financing costs.
Article 21
The people's governments at or above the county level shall establish a policy credit guarantee system for small and medium-sized enterprises, and encourage all kinds of guarantee institutions to provide credit guarantee for financing small and medium-sized enterprises.