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Financing Difficulties In Small Shoe Enterprises Worry

2008/8/29 9:44:00 6

Small And Medium Sized Shoe Enterprises Financing Loans

What is different from the past is that every time the macroeconomic regulation and control, small and medium-sized enterprises can find the way to survive. Regulation has little to do with survival.

By the end of this year, the external environment of the whole economy has changed significantly. The 126 brands, the official online store, have changed, sustained inflation pressure, continued appreciation of the RMB and rising labor costs are all squeezing the profit margins of enterprises.

More importantly, overseas markets have also seen new changes in the engine driving China's rapid economic development: foreign trade is no longer booming as it used to be, and the number of orders sought by enterprises is less and less.

In the summer, the small businesses in traditional industries are all alarmed. The failure of SMEs has occurred frequently, and the cost of private lending continues to rise. Money, whether debt or loans, has become a top priority for small and medium-sized enterprises to survive.

Predicament: financial constraints overwhelm small businesses

"I'm still holding on, but I'm sure it won't last long."

Chen Xueming, a small shoe factory in Houjie Town, is tired of pointing to the dollar chart.

Chen Xueming has opened this small factory of nearly 100 people for 8 years. For Chen Xueming and his colleagues, the rise of raw materials, the increase in wage costs, the appreciation of the renminbi and the reduction of orders were once frightening, but the real final collapse of the business was lack of sufficient capital turnover.

債務(wù)成小企業(yè)“死穴”

Sun Wenguang is from Yueyang, Hunan. His shoe factory has been established in 2000 since the establishment of the shoe industry in Chi Street, Houjie. Up to now, there are more than 200 employees.

He told reporters, "debt has become the biggest problem in the operation of enterprises. Every day they are in a terrible state of thinking about how to get money, otherwise they will go bankrupt."

Sun Wenguang said, opening a shoe factory, some production links have been subcontracted out, at least more than 10 suppliers supply, one side of the problem of shortage of funds, there will be a chain reaction, mutual arrears of money, and finally form a complex debt relationship, it is difficult to resolve.

It's hard for small companies to get money from banks.

A company with problems will also have problems.

Banks do not trust SME loans.

Long Weiyang, a finance and trade department at Dongguan University of Technology, said that Dongguan's financial difficulties are mainly those of small businesses that need expansion and small businesses, but borrowing is very difficult.

This is mainly because banks do not trust traditional types of enterprises.

The credit rating of these small businesses is not high, the project is not big, and banks have no incentive to loan.

The main financing way for small enterprises with difficulty in financing is to raise funds through private sector and borrow from business partners or friends, all by private credit.

The lending rate is usually 2~3 times the bank interest rate.

There are also pure usury, but usury is like drinking poison to quench thirst. If a mistake is made, it will die faster.

Long Weiyang once made a market survey and found that the large enterprises in Dongguan are basically not moving at present, mainly because the small businesses of some traditional industries began to migrate on a large scale.

Yang Rong, a shoe factory owner, said that in addition to pferring factories to cheaper areas, business has also begun to adjust. In the past, it mainly depends on the foreign trade market, and now it can only be pformed into domestic sales.

But to do well in domestic sales, we need to invest more money in the construction of marketing channels, but the loan is still very difficult.

Government initiatives

東莞試水小額貸款公司

After the large-scale pilot projects in Jiangsu and Zhejiang provinces, the enthusiasm of Dongguan water test small loan companies is rising.

It is understood that Dongguan has submitted to the provincial finance office the application of pilot small loan companies, and strive to ease the financing difficulties of SMEs.

According to people concerned, there are three main reasons for applying for the pilot in Dongguan:

First, Dongguan has always been a financial oasis. Its financial assets have always been excellent. The basic conditions for undertaking financial innovation are better. Two, Dongguan has abundant private capital, and only the banking system has accumulated hundreds of billions of yuan of funds. Three, social credit is good, Dongguan's folk customs are simple and honest, and enterprises have a good tradition and reputation of honesty and trustworthiness.

"Trial water small loans can not only help some SMEs solve the" ischemia "problem, but also find a legitimate outlet for private capital.

However, due to the fact that the provincial government has not yet issued relevant implementation measures, and the cities that are trying to pilot cities are more, whether Dongguan can get the pilot qualification is still inconclusive.

According to the pilot guidance of small loan companies, the loan amount of the same borrower shall not exceed 5% of the net capital.

If the registered capital of a small loan company can reach 1 hundred million, the same lender may borrow 3 million ~500 yuan.

Although the single finance is not large, it is very helpful to small and medium sized enterprises which need money urgently.

Despite the fact that "eight characters have not yet been written off", the relevant government departments and civil servants are still enthusiastic.

According to people familiar with the matter, the city finance office has received nearly 10 applications for the establishment of small loan companies, with the exception of municipal enterprises, town enterprises and private enterprises.

Taiwan enterprises upgrading is also lack of funds.

The issue of capital is also the biggest problem facing Taiwanese businessmen in upgrading and pformation.

Ye Hongdeng, former chairman of the Dongguan Association of Taiwanese businessmen, said in an interview with reporters that from the beginning of this year, the "special fund for science and technology" in Dongguan, which is 1 billion yuan a year, will be opened to Taiwan businessmen for the first time, so as to promote the upgrading and pformation of these enterprises.

But high technology itself is high investment and needs a complete capital market.

"If the capital market is not perfect, do not touch high-tech at all."

Ye Hongdeng believes that high technology needs venture capital (venture capital), good securities market, good bank loans and financial leasing.

But Dongguan's multi-level capital market has not been established at all.

How to build a multi-level financial market, including venture capital, venture capital, financial leasing, trust, bond, bank and so on, is a matter for the Dongguan government to do.