Pawnshop Financing

Small and medium-sized enterprises often encounter problems of inflow of funds in operation. What should we do?

It may not be feasible to turn to banks because the threshold of banks is relatively high.

If we find a pawn shop, the problem of capital will be much easier to solve.

This is a common problem in business operations. In the course of operation, capital turnover is not good enough, so it is hard to get rid of financing and lose investment opportunities and even lead to economic losses.

What about the urgent need of funds?

I'm afraid many people think of banks for the first time.

It can be further considered that the threshold of banks is too high for small and medium enterprises and individual businesses, and many banks do not accept mortgage, such as a group of clothing, some specific machinery and equipment.

In contrast, pawn is a convenient financing channel.

A small business owner engaged in building materials business told reporters that the company had just been established for more than six months, and almost ran all the banks in the city in order to finance, but in the end it was rejected because it was a small business.

People in the banking sector also have difficulties: "to be poor and to love the rich is also a way for banks to do nothing. Although small and medium-sized enterprises have financing needs, the risk of loans is large and controllable. How do you know what he has done after he gets the loan?"

A person in charge of bank loans said helplessly.

According to the reporter's understanding, even though banks currently have loans for small and medium-sized enterprises, most of them are based on policy provisions, and there are few specific ways to operate them.

"This year, I bought a Daewoo truck to run and pport. I borrowed 150 thousand yuan from my colleagues in the East, but I can't get enough money because I can't get enough money.

From the bank loan is too difficult, later introduced to the pawn shop by a friend, a hard hearted new Daewoo car left in the pawnshop, the same day to get the about 100000 yuan, more than 10 days after the turnaround, I redeemed the car.

Zhang Peixin, who is a passenger business, speaks of pawn, and his words are full of praise.

There are many individual businesses such as Zhang Peixin, and some small and medium enterprises constitute the main customers of pawnshops. In Shanghai pawnshops, they account for more than 90% of the total customers of pawn shops.

In the pawnshop, the assets, such as materials, equipment, factories and so on, can be used to fetch a certain amount of funds, and then put into the production and operation, turn dead things into living money, and make use of the time difference of financing to get economic benefits.

Especially for businesses and individuals who are in urgent need of small funds, pawnshops are much more convenient than banks.

Mortgage loans are more extensive than banks. From the point of view of loan types, pawnshops, like banks, are institutions that operate currencies, especially in issuing mortgage loans, which are similar to banks.

However, mortgage loans are more widely accepted than collateral, and bank loans generally only accept real estate as collateral.

When mortgage loans are used, pawnshops accept pledge of movable property and rich pledge of rights, while banks do not accept the pledge of movable property and accept only a single pledge of rights.

In Pudong, a company specializing in paper-making blankets for paper mills has a total assets of 1 million yuan, with sales of 5 million yuan per year and more than 60 workers.

Because their demand for paper blankets is in short supply, it is necessary to increase the equipment, which requires about 600000 yuan of funds, but the company's liquidity is not enough, and they want to make loans to the bank. The bank refuses to accept it: because its loan amount is too small, and there is no guarantor, and the equipment of the enterprise is relatively professional, and liquidation and sale also have risks, which are not within the scope of collateral in the bank mortgage loan, and it is difficult to meet the requirements of banks.

But in desperation, they turned to the pawnshop for help.

After understanding the assets appraisal and the actual situation, the pawnbroker thinks it can be supported.

The original equipment was assessed at 1 million yuan, whereby the pawn shop paid 500 thousand yuan of gold to the enterprise for a week, with a term of two months.

Because its equipment can be moved and the workshop is also leased, the equipment is guaranteed by personal property.

The small and medium-sized enterprises have to pay a monthly rate of 3.5%, or 500 thousand yuan 3.5%=1.75 million yuan.

Others only need to pay a small amount of mortgage charges, and 150 yuan of mortgage notarization fees are also paid by pawnshop.

"Banks generally do not carry out the chattel mortgage business, do not make small loans, there are many restrictions on the borrower's credit and loan purposes. There are many obstacles to personal property financing to the bank mortgage.

In contrast, pawnshops "do not recognize people", do not have too many cumbersome procedures and rigid conditions, to several million yuan, small businesses to tens of dollars are welcome.

All depends only on the authenticity, the market price, and whether the source is legal and the ownership is clear.

In addition, pawn shops pay attention to a word "fast", which can be completed in two or three days, and sometimes customers can get money on the same day.

Jin Xin, manager of pawn shop in Shanghai, Ma Guohua, said he had served as a credit controller in a bank and had a direct understanding of the differences between banks and pawnshops.

In short, customers can use their own gold and silver jewelry, jewellery, diamonds, household appliances, cars and other different value of movable property to pawn mortgage loans, so as to meet their daily financing needs.

At present, pawnshops also carry out individual stock pledge.

In contrast, banks generally do not carry out chattel mortgage business, especially do not provide personal property mortgage loan services to individuals, which makes the majority of the public in China possessing many movable property, but can not be used as a guarantee to finance the banks.

The only personal mortgage loan business is the pledge of certificates of deposit and bonds, that is, all kinds of certificates of deposit or bonds recognized by bank depositors can be used as collateral for banks to apply for loans.

Pawn and pawn become a new financing channel for small and medium-sized enterprises. There are two main characteristics of the financing of pawn shops. One is fast and can guarantee timeliness. The two is high degree of freedom and various financing modes.

For the vast majority of small and medium enterprises with weak strength, these two characteristics are tantamount to providing timely help.

In regard to the financing of small and medium-sized enterprises, Lu Zhimin, director of the material Department of the Oriental pawnshop, thinks that when it comes to financing, the SME owners first think of bank loans. However, SMEs have some problems in lending to banks: first, bank lending tends to heavy and long-term capital, which often deviate from the actual needs of SMEs. Secondly, bank lending generally takes 2-3 months from application to approval, and the cycle is too long for SMEs. Third, due to insufficient technology and regulatory power, banks can not provide a complete pledge business.

Therefore, it is well-known that the problem of small and medium enterprises loans is still outstanding.

Lu Zhimin told reporters that small and medium-sized enterprises in the bank's financing plan is difficult to operate, because its assets and liabilities table is difficult to assess, and its assets liquidity is poor, but in pawnshops, they can through their own assets and factories to carry out a large amount of financing.

He told reporters that in 2003 the eastern code for SMEs financing more than 300 strokes, the payment of gold more than 300 million yuan.

According to Lu Zhimin, at present, most small and medium-sized enterprises provide the following categories: civilian products, real estate, motor vehicles and negotiable securities; the range of materials, raw materials and warehousing products can be widely selected.

Most SMEs can not provide traditional products such as civilian products and real estate. Instead, they can play a role in producing raw materials and warehouses that are not used in their spare time.

Besides, the pawnshop can also play the role of the pfer station in the loan link between enterprises and banks.

When a bank loan needs to be pferred at maturity, the loan must be cleared.

This is a big problem for most of the small and medium sized enterprises whose liquidity is stretched.

In view of this predicament, pawn shops can provide short-term financing to repay loans so as to ensure that enterprises have ample funds.

Even if the bank's loan application is not approved, the enterprise can wait for the capital to return and pay the pawn shop.

The small and medium-sized enterprises that came to the pawnshop for financing have found that the financing of pawnshop banks is also characterized by "short and fast", which is especially suitable for the amount of loans of $2 million and below, which is one or two months' worth of financing needs.

As long as the documents are complete, and the daily necessities are used as products, you can get gold from pawnshops in 5 minutes. If you use vehicles and materials as collateral, you will be able to lend money to you within two or three days. Even if you take property as a property, you can get money in 7 days.