Providing a "timely rain" to help businesses expand their scale

This article is reprinted from: Linfen Daily

Qixian Rural Commercial Bank — Longquan Branch —

“Timely rain” to help businesses expand

By our reporter Liu Wenjun

“Mr. Cao, how is business going these days?” Recently, Li Qing, the president of the Longquan Branch of Qixian Rural Commercial Bank, visited their office at Liumao Logistics Co., located in Wangjiazhuang Village, Longquan Town, Qixian County, and came to learn about its business and development. “Business is still good. With the support of our rural commercial bank, I believe business will get even better.” the company’s负责人曹瑞虎 said with full confidence.

In 2004, Cao Ruhu became involved in the logistics industry. That year, he worked for a logistics company in Taiyuan. Later, due to poor management at the original company, the person in charge developed the idea of stepping back. After learning the news, Cao Ruhu took over decisively, and from then on he officially embarked on the road of starting his own logistics business. Under his careful management, the company gradually got on track. In 2006, as his parents grew older and needed someone to take care of them, after some thought, Cao Ruhu decided to give up the foundation he had built in Taiyuan and return to Qixian County to start over. “My parents are getting older. I only feel at ease when I can take care of them by my side,” he said.

After returning to Qixian County, Cao Ruhu founded the first local logistics company. In the start-up stage, they had only one 2.6-meter-long mini truck. He and his wife worked early and late, loading and unloading the cargo themselves. At first, the business scope was limited to running routes within Linfen. But by operating with integrity and working hard, Cao Ruhu’s logistics business gradually gained traction.

As the business kept expanding, Cao Ruhu’s logistics company went through five relocations. Each move meant expansion in scale and an upgrade in services. From the initial one mini truck to today’s fleet that includes one 9.6-meter heavy transport truck and four 6.8-meter medium transport trucks, it has become a leading enterprise in the local logistics industry. Currently, the company’s business network covers places such as Taiyuan, Houma, and Linfen, and cargo can be shipped to all parts of the country. With efficient services and a reliable reputation, “Liumao Logistics” already accounts for more than 70% of the market share in Qixian County, with 22 employees. Cao Ruhu’s “Liumao Logistics” has become a calling card of the logistics industry in Qixian County. However, with the sustained growth of its business, the existing site—covering more than 3 mu—can no longer meet operational needs. Cao Ruhu is planning to move into the logistics park that is being planned and built in Qixian County, and to add large transport trucks, further expanding his business scale.

The expansion of a business is inseparable from financial support. This January, when Cao Ruhu was planning to expand his operations, he found that the funding shortfall had become a real problem in front of him. At just this time, during Li Qing’s visits and promotional work, she learned about Cao Ruhu’s situation. After asking in detail about his operating condition and development plans, Li Qing immediately recommended the financial products of the rural commercial bank to him. After careful investigation and assessment, the Longquan Branch successfully handled a 500,000 yuan loan for Cao Ruhu, promptly resolving his urgent need.

“Once the funds are in place, we can expand according to our plan,” Cao Ruhu said. “Now that we have the support of the rural commercial bank, I believe the business ahead will be even better.” The 500,000 yuan loan not only eased Cao Ruhu’s funding pressure, but also further strengthened his confidence in making his business bigger and stronger.