Vzoom Credit (微众税银) is a Shenzhen-based fintech company that uses the official tax returns of companies for credit assessment purposes.
Vzoom bills itself as provider of “tax banking services” that “use taxes to set loans” and enable companies to “swap their own tax payment credit for bank credit.”
According to its official website Vzoom allows tax paying entities to use their tax information as the basis of applications for bank loans, with an especial focus on the provision of funding support to small, medium and micro-enterprises.
Geng XInwei, Vzoom CEO, said to China Daily that while it’s easy for companies to create misleading financial reports for submission to financial institutions, their tax returns are usually more accurate.
“Unlike other data that the small companies can easily fudge, authentic tax data says a lot about companies,” he said.
“The monthly tax payments show if the company makes profits, the tax record reflects credibility, indicates the equity structure and registration status, whether or not it is a legal entity. And more importantly, it is a financial statement.”
As of the end of July 2017 Vzoom had provided its credit data services to more than 80 banks in 28 Chinese cities, facilitating loans to m ore than a million small and micro-enterprises worth around 100 billion yuan in total.
According to a report from Forbes Vzoom Credit has entered agreements with at least 27 provincial tax bureaus.