Loans For Smes In The Economic And Cold Winter Period

Game between banks and enterprises!

Banks have their own difficulties. No matter whether the financial storm is coming, it is difficult for small and medium-sized enterprises to raise funds for banks.

Under the catalysis of the storm, the contradiction between the loan demand of SMEs and the credit business of banks has been magnified more and more.

When banks are struggling to make loans for traditional large enterprises and large projects, a large number of small and medium-sized enterprises are struggling with stagnation and retrogression because of the inability of capital development to fill up with the banks' disregard.

What exactly is blocking the way of bank loans for small and medium sized enterprises and getting them into financing difficulties?

Why are banks so poor and rich that they are "far from" for SMEs?

5 reasons why loans are difficult?

Lack of small and medium-sized banks suitable for SMEs' services.

Guo Tianyong, director of the China banking research center of Central University of Finance and Economics, attributed it to the mismatch between the financial system dominated by large state-owned banks and the large number of small and medium-sized enterprises in China.

Guo Tianyong told the manager: "in fact, all banks are poor and rich. The risk of large enterprises is small. Banks choose large enterprises to lend money is a rational choice.

Research shows that the larger the size of banks, the lower the proportion of SMEs.

But in developed countries, there are many small and medium banks, and they are more suitable for small and medium-sized enterprises.

The system is hard to change, and the "brick culture" prevails.

The old system has left the banks with a long way to go for loans to small and medium-sized enterprises. If enterprises do not have the right collateral, especially real estate, loans will be hard to succeed.

Zhu Gengzhou, President of China Capital Planning Research Institute, has dubbed it "brick culture".

In addition, large companies have been strictly audited and publicly disclosed more information. Banks are more comfortable.

At the same time, they have more investment in fixed assets and are more likely to find collateral.

The approval process is complex and costly.

What makes banks less motivated for SMEs' financing business is that small and medium-sized enterprises need hundreds of thousands or millions of small loans. The interest income earned by banks is often unable to make up for the cost of operation.

A loan officer of the Shenzhen development bank told reporters that the same is the 3 person's credit team, making 1 million and 20 million loans to spend the same time, loan officers will choose the latter.

From the operational level, the problem is that the domestic banking industry is still using the idea of wholesale banking in the past to do such retail companies business, with cumbersome procedures, long approval process, and much more cost than profit.

In addition to the direct cost of interest and other costs, enterprises also have to suffer the opportunity cost due to long time examination and approval.

Small and medium enterprises black box operation, lack of credit.

The operation of SMEs is too flexible and internal controls are serious. Banks naturally mean that the financial statements provided by them are not trustworthy, and can not be seen as "black boxes".

Small and medium-sized enterprises are unstable in production and operation, and are greatly affected by market fluctuations.

Small and medium enterprises have less capital, weaker strength, lack of talent, weak technology, and vicious competition in the market, so it is difficult to guarantee the sustainability of operation.

China and foreign banks: optimistic about the market of small and medium-sized enterprises. In the final analysis, small and medium-sized enterprises and banks are like a river separated from each other. What is missing is only a bridge linking the two sides.

No matter which side, they need to take the initiative to approach each other.

Let domestic banks turn to small and medium-sized enterprises accustomed to big projects, big industries and big enterprises, just as it is difficult to teach elephants to dance.

However, as the competition of mainstream customers is becoming more and more intense, banks are also forcing themselves to dance.

For example, the State Development Bank, which provides loans to key projects in central and western provinces, has launched a total of 18 billion yuan in science and technology loans in Guangdong province.

Li Nan, senior manager of Bank of China, said: "SMEs have many business opportunities in financial services, with large market capacity and rapid growth.

In the four major banks, Bank of China established the SME business module at the head office level to specialize in this business.

Even if we are optimistic about business opportunities, not all small and medium-sized enterprises can do so. State owned large banks still have certain policy obligations of industrial restructuring.

Lu Zhuoxiong, President of Foshan branch of the industrial and Commercial Bank of China, said: "in the face of SME customers, ICBC Foshan branch pays more attention to the sustainable development of small and medium-sized enterprises, and does not comply with the national industrial policy of" two high and one left "enterprises, implementing customer list management and industry quota management.

The development pattern of small and medium-sized enterprises is small and specialized. Small and medium-sized financial institutions such as joint-stock banks and city commercial banks are more suitable for such businesses than large banks.

Take the Bank of Ningbo as an example, it was born in Zhejiang, a well-developed private economy and a large number of small and medium-sized enterprises. OCBC, a foreign shareholder, has rich experience in small and medium enterprises, and is positioned to provide comprehensive financial services for SMEs and become a zero cost financial adviser.

Its "golden pond" small business financial services in China pioneered customer integration plan, every customer contribution to the bank will have corresponding points, as a record of bank pactions, customers can not only get value-added services based on points, or even get preferential loan interest rates.

China Merchants Bank has won the first license of small business financial services institutions in China, and has set up a small business credit center in Suzhou.

Yang Shaowei, President of the small business credit center, said that it will establish and improve the risk management system, salary and welfare system, assessment and distribution system, and product pricing system to meet the requirements of small business development.

In contrast, foreign banks that have grown up under the mature financial system and credit system do not believe that SMEs are very difficult to finance.

Lin Tianfu, managing director of the small and medium enterprises finance department of Standard Chartered Bank, introduced "business manager" to his business model. In addition to some quantitative indicators, such as sales, Standard Chartered also evaluated some non quantitative indicators, such as the management mode of management team, the market share of enterprise products, the potential of the industry and its own future development.

In addition, the legal representative of SMEs is closely related to enterprises. Standard Chartered also depends on his personal credit records, personal assets and so on.

Standard Chartered does not evaluate the enterprise through the third party Guarantee Corporation, but is directly assessed by its own sales team and approval personnel.

"In Standard Chartered, SME loans belong to the field of personal banking services."

Enterprises: don't wait for lack of money to run banks. The business of small and medium-sized banks is still under exploration. Enterprises should also change their ideas and move closer to banks.

If enterprises want more support from banks, honesty is a prerequisite. They need to accumulate credit from small to large, and then run to banks when they are short of money.

The key point is to fully communicate with banks. Zhu Gengzhou called it "financial public relations". Its purpose is to let banks understand enterprises and support enterprises.

For example, reporting to the bank on a regular basis the production and operation status, and letting the loan officer regularly visit the enterprise, reducing the bank's doubts about the information asymmetry.

Enterprises also need to know the credit rating criteria of their banks, know which behaviors the banks encourage, what behaviors they are against and take the initiative to adapt to the standards of banks.

Small and medium-sized enterprises should take the initiative to analyze the true opinions of different banks to SMEs, the tendency of credit and the degree of proximity to them. In particular, we should pay attention to some new SME loan products launched by banks.

For example, some small and medium-sized enterprises can consider the supply chain financing more. If a small and medium-sized enterprise is a supplier of WAL-MART, it can rely on the supply contract with WAL-MART to raise funds from the bank, accelerate the cash turnover, and also give the management and collection of accounts receivable to the bank, so as to avoid the rigid relationship.

Li Nan said, "small and medium-sized enterprises should not consider themselves small. If the survival environment in the entire industrial chain is very good, banks will find ways to tell enterprises what products are suitable."

What is more important is that enterprises should not expect too much to introduce new credit products, but to start from their own needs.

Lu Zhuoxiong said that the blind planning of enterprises and overloading operations often lead to the breakup of capital chain.

Zhu Gengzhou believes that enterprise financing should be solved internally first, not only to establish a modern enterprise system, but also to plan financing activities like production and operation.

It can rent equipment and factory buildings instead of buying products. The promotion of the products will be promoted, and the funds on the finished products will be reduced.

The 5 major "hidden rules" of bank dealings must not lie.

You may not tell the bank everything about the company, but everything you say must be true.

Your year-end settlement must be handed over to the bank third months after the business year.

You have to report the situation to the bank before you know the new problems in your business from other channels.

Put yourself in the bank's position and consider what you know, and how you will evaluate your company's business.

Don't promise the bank easily.

Once you can't complete the target, the bank will think you lack vision and judgement.

The three strategies for preventing bad debts are: 1., 1~3 years ahead of time, financial planning is made to clarify the purpose, effect and repayment schedule of the loan. There is enough cash in the repayment date to repay the principal and interest.

2. banks and enterprises cooperate to prevent bad debts.

SME loans are mostly between "good account" and "bad debt". Banks should continue to pay attention to the profits and cash flow of the lending enterprises, and help them to tide over the difficulties through reorganizing loans and other enterprises with repayment intention.

The 3. bank should take the initiative to be a staff member of the enterprise and provide strong information support for its operation and development.

Besides funding, enterprises also rely on management and development decisions.

How can we make banks feel free to pay?

You may choose the wrong credit products.

"Loans are difficult, and loans for SMEs are particularly difficult. Loans are even more difficult under the financial crisis."

A small and medium-sized business owner, who has been plagued by a shortage of funds, is so sorry for manager.

The bank has always been "poor and rich" in terms of corporate credit, and the financing difficulties of SMEs have been long-standing.

The current financial turmoil is rampaging around the world, and its impact on China's economy has deepened. The profitability and efficiency of large numbers of small and medium-sized enterprises have been greatly affected, and funds are increasingly stretched. Many of them are bankrupt in the storm due to the split of capital chains.

How can SMEs finance successfully from banks?

Most of the leaders of small and medium-sized enterprises have not yet figuring out which credit products and which credit institutions are suitable for their own loans. This is an important reason for their difficulty in lending.

He Shihong, President of the China Financial Research Institute, told the manager that "every bank has its own direction and focus of credit. Small and medium enterprises must consider clearly which path to succeed before lending.

This is particularly important in the current winter. "

Then, how should SMEs choose the appropriate loan path according to their own characteristics and find the "fire" that warms itself in the cold winter?

Small and medium-sized enterprises with different products at different stages of development have different development characteristics. This determines that they have to choose different loan routes according to their own strength scale and asset status.

In the initial stage, the shortage of assets, the small scale of sales and relatively small amount of capital demand are often shown as an urgent demand for liquidity turnover. When enterprises enter the period of growth and show overall expansion trend, and when the future development is expected to be good, with the growth of scale, raw materials, products, orders and other movable property and even equity can become collateral for loans, and the capital demand of enterprises is often reflected in equipment investment and real estate investment for scale expansion.

"The further the SMEs go, the more advanced the development stage is, the more financing channels and loan routes will be."

He Shihong emphasized.

In the early stage of development, credit and loan companies are starting up and their foundations are not stable. There is almost no effective collateral for asset shortage. At this time, some banks' innovative credit loan products are undoubtedly excellent loan routes.

In October 2005, Kang Zhenguo, general manager of Shanghai red Kai Machinery Manufacturing Co., Ltd., was mixed with joy. The first time that the company received millions of orders in history was worried that the original foundation of the enterprise was too poor, and there was almost no working capital. To complete the order, raw material procurement became a problem.

After borrowing money and lending money to many banks, Kang Zhenguo applied to the Standard Chartered Bank for unsecured small loans and successfully passed the audit loan.