Dreaming Of The Loan Nightmare On The Expansion Of Small And Medium Enterprises In Zhejiang

"We are officially unemployed today."

Zhang Changbin, the worker, just pressed the handprint on the letter of rescission of the labor contract, which stated that because of the poor management of the company, Party A and Party B have reached a consensus through July 15, 2008.

Zhang Changbin did not know the specific reason. "I heard people say that the boss has run away."

In the afternoon of July 16th, in the town of Dachen, known as the "hometown of shirts" in Yiwu, many workers like him were anxiously awaiting the response of the manufacturer, the Zhejiang Jiao Li socks Clothing Co., Ltd. (hereinafter referred to as "Jiao Li socks").

"On average, there are 1 shirts produced in Yiwu for every 3.6 Chinese people" - this is a popular saying in Dachen Town, Yiwu.

However, Zhang Changbin told the first financial daily that since June, raw materials in their factories have been tense, and many workshops have ceased production.

"We have been idle for half a month, and the wages of the first two months have been in arrears, and this afternoon has just been reissued."

In fact, since the second half of 2007, with the appreciation of the renminbi, the adjustment of the national export tax rebate and the soaring price of raw materials, the export enterprises of Dachen town have suffered from the unusual pressure.

However, when the local well-known enterprise, the golden Wu group Limited (hereinafter referred to as the "golden and black group"), was shut down, under the circumstance of wages owed by the employees, bank loans and high interest loans, the company boss Zhang Zhengjian even disappeared and stayed away from abroad.

　　“金烏”崩塌

According to public information, in early 2008, the total assets of Jin Wu group amounted to 1 billion yuan and 2000 employees. It was once a hundred trustworthy private enterprises in Zhejiang Province in 2004.

Zhang Zhengjian himself has been awarded the honorary title of "top ten young private entrepreneurs" in Jinhua and "youth spark leaders" in Zhejiang.

In 2004, Zhang Zhengjian was once famous for Yiwu's 500 shops in Dubai, the United Arab Emirates.

Zhang Zhengjian, who was born in 1967, worked for the Jin Shan village of Dachen town in Yiwu. After graduating from high school, she went to Anyang small commodity market in Henan province and then moved to Shijiazhuang, Hebei.

In 1994, Zhang Zhengjian, 27 years old, collected 5 acres of land in Dachen Town, and established the charming socks industry.

Later, he founded the golden Wu group.

Mainly engaged in socks industry, clothing processing, textile raw materials wholesale, modern agricultural development, hotel services and so on, and gradually entered the textile, chemical fiber, catering, business, and ultimately grew into a star enterprise in Yiwu.

There are many subsidiaries and industries in Jin Wu group, but some of these industries are not understood. For example, one of the plation companies, seven or eight plation companies basically do not have any business all year round, while another auction companies only has an auction business of less than 200 thousand yuan in two years.

The collapse of Jin Wu group was mainly due to the massive expansion of Zhang Zhengjian and thus plunged into the abyss of civil usury.

According to the first Financial Daily reporter, from 2006, the scale of private lending of Jin Wu group began to increase.

The way of money is more complicated. There are more places in Yiwu, and others include Zhuji and Yongkang.

From the earliest monthly 2~3 to more than 6 points, only two years in the middle.

In the process, Jin Wu group invested five billion star hotels and a large tourism project to make the company's capital chain more intense.

This reporter from a number of channels to verify, Jin Wu group currently involved in arrears are divided into two parts, respectively, 350 million yuan owed to banks and 1 billion 400 million yuan of private lending.

In the 1 billion 400 million yuan of private lending, the principal is only 800 million yuan, with an interest rate of 600 million yuan.

Among them, the largest loan bank is Yiwu branch of Agricultural Bank of China. Its loan collateral is the mountain hotel under the name of Jin Wu group.

By the 17 th, some bank creditors have prosecuted the Jin Wu group to the local courts, including the Yiwu branch of Zhejiang Merchants Bank.

At the beginning of 2008, the interest paid to creditors was unsustainable, and the problem of Jin Wu group began to be exposed.

"He always pays interest according to the agreement, and his credibility is very high.

But by the beginning of this year, many people haven't received interest.

A creditor disclosed that at first several people could not get the interest to go to court to sue him, the bank started to urge the loan, asked the group to auction the property to repay the loan, then many creditors asked for the arrears in succession.

In June 20th, Cao Zengsheng, director of the Industrial Office of Dachen town government, got the news from the Yiwu labor supervision team: the golden Wu group may have an accident.

He told the first financial daily that government departments began to do rehabilitation work.

In July 15th, the staff of the legal aid center of Yiwu labor supervision group began to work at the golden Wu group.

The workers arriving are asked to fill in a copy of the labor contract and then go to the financial office to receive the corresponding paid wages.

"More than 420 employees in arrears of more than 300 million yuan have been basically paid out, the money is mainly from the company receivable."

Cao Zengsheng said, according to the relevant provisions of the labor law, the enterprise will terminate the contract in the midst of the contract to bear the corresponding liability for compensation, but this part of the compensation can only be resolved through litigation.

　　民企求銀兩難

What kind of dilemma did Jin Wu group fall into?

Why did Zhang Zhengjian avoid overseas?

Here, "three types of enterprises are most likely to die."

Some business owners interviewed said: one is to die by usury, borrow money like opium, enterprises will die sooner or later; two, the boss will lose the business if gambling is made; the three is the blind expansion of enterprises regardless of strength.

"We do not recognize the state's macroeconomic regulation and control policies."

Cao Zengsheng believes that this is the biggest reason for Zhang Zhengjian's failure.

"He has not been able to judge the macro-economic situation, and he thought he could tide over the difficulties by lending some usury."

Such a situation like Jin Wu group is only a microcosm of many small and medium-sized enterprises in Yiwu and even Zhejiang province.

The bankruptcy of a large number of enterprises is related to the decline of external demand and the appreciation of RMB. But what is more fatal is the rise of the cost of production, such as land and labor, especially the synchronous rise of capital costs.

With the continuous implementation of the tight monetary policy of the country, the credit supply of SMEs is obviously tightened.

By the end of 6 this year, the loan balance of Yiwu's financial institutions was 66 billion 380 million yuan, an increase of 6 billion 810 million yuan over the beginning of the year, an increase of 16.7% over the same period last year. However, compared with the same period last year, the loan growth rate slowed down significantly, with a decrease of 3 billion 600 million yuan compared with the same period last year.

Data from the SME Bureau of Zhejiang showed that the bank lending rate for SMEs generally rose by 30%~40%, with a high float of 80%.

At the same time, many banks also require the pledge of enterprise deposit certificates, so that the comprehensive financing rate of state-owned banks has reached 11.65%, and the comprehensive financing rate of joint-stock banks has reached 15.40%.

If it is secured loans, plus the guarantee rate of 2~3 percentage points of guarantee institutions, the financing cost of SMEs will be higher.

In most places, the monthly interest rate of private financing has reached 4 to 6 points.

A business owner who ran for a bank loan told reporters: "now the bank is very picky about the demand for collateral. It's not only my old house, but also the poor location of my house."

A lawyer in Jinhua said that another reason why banks were reluctant to lend was that they could not determine the debt situation of enterprises, and no one knew how much usury they borrowed.

In the first quarter of 2008, the analysis of the operation of industrial economy above Designated Size in Yiwu pointed out that the tightening of bank loans caused some enterprises' capital chain to be strained in Yiwu.

Especially for some industries, such as large investment, long cycle, low profit and difficult recruitment, there is a shortage of liquidity. Enterprises have to rely on private financing, capital chain tension or even break down, resulting in bankruptcy or reorganization.

The above materials also say that the tightening of money has led to an increase in financing costs and financial costs. In 1~3, interest payments for Enterprises above Designated Size in Yiwu amounted to 220 million yuan, an increase of 29.7% over the same period last year.

By the end of March this year, there were 7 enterprises in 1138 above Designated Size Enterprises in Yiwu, and 16 enterprises had ceased production, cancelled or relocated.

So in May this year, Dachen town organized a meeting of banks and enterprises, and the heads of more than 20 financial institutions in Yiwu, and more than 10 representatives of Enterprises above designated size.

Wu Yurong, Secretary of the Yiwu Municipal Committee, said at the meeting that financial institutions should establish confidence in Dachen town enterprises and actively play the role of banks and continue to support the development of enterprises in Dachen town.

       

But more and more SMEs are still trying to tide over difficulties through private lending.

In Yiwu, there are two kinds of usury channels. One is the usurious institutions which are listed in the form of consignment shops, pawnshops, Guarantee Corporation and investment companies. The other is individuals who borrow privately through small circles.

This has also led to a sharp increase in loan disputes.

Cao Hongguang, a lawyer in Jinhua, told reporters that more than half of the agency cases involve private lending disputes.

In May this year, in view of the large number of cases of private lending disputes, Yiwu City Court held a regular meeting of the president to study the problems of private lending cases.

One of the judicial principles determined is that the interest rate and liquidated damages shall not exceed 4 times the interest rate of the same period of the bank in the term of the loan. If the overdue repayment is not made, the sum of two of the penalty and interest shall not exceed 4 times the loan interest rate of the same period of the bank.

As of April 30th, the hospital received 80 civil and commercial cases of 3 million to 10 million yuan, including 58 private lending disputes.

The above materials suggest that in view of the current financing difficulties of industrial enterprises and the surplus of idle capital in society, we can consider the establishment of venture capital funds by the government, joint departments concerned and the Financial Services Department as the core.

On the one hand, it can solve the financing difficulties of some enterprises, especially the growth enterprises. On the other hand, it can also regulate the investment direction of private capital, realize capital re creation with local capital, and promote the economic development of Yiwu.

Of course, for fund investment risk management, we need professional talents and special risk management control system.

　　“襯衫之鄉”的蕭條

In Cao Zengsheng's eyes, the closure of the Jill socks industry of Jin Wu group also made it very lament, which may have great impact on the completion of various economic indicators this year.

Besides, Jiao Li socks industry is not a case.

"Since 2005, the average annual number of shirts in Dachen town has been reduced by about 50, and up to 70 this year.

In recent years, there has been a downward trend in the number of enterprises. At present, there are only 430 enterprises in the whole town.

Cao Zengsheng said to the first financial daily.

Up to now, the big character billboard of "the hometown of Chinese shirts" still stands on the edge of Da Chen Road.

Cao Zengsheng told reporters that the shirt business of Dachen town started in the early 80s of last century, and by the middle and late 90s, the total number of shirts enterprises reached nearly 600, forming about 500000 production scale of Nissan shirts.

Once, in the 136 square kilometers of Dachen Town, 1/10 of China's shirts were produced.

From 1995 to 2000, it was the "golden period" for the development of shirts in Dachen town. Chen Jianguo, vice chairman of Backman group, said: "because the threshold for entering the shirt industry is not high enough, we can invest in about one hundred thousand yuan to buy several machines and recruit dozens of employees, so we can run a shirt factory.

Everyone is making money and rarely looks up. "

Cao Zengsheng said that entering the garment industry does not require much capital and technological advantages, so that it will increase the low level competition in the clothing industry.

Such low level competition is mainly confined to competition in prices and styles. Sales of products are mainly based on the large circulation in the wholesale market.

Around 2000, many enterprises tried hard to make loans to expand production. In April, the peak season did not come and waited for May, and May did not come to June.

Founded in the mid 1980s, the Zhejiang high tech Clothing Co., Ltd. once reached the annual production scale of 200 thousand suits and 2 million shirts. The products were selected as "national famous brands" and "national top quality products", but in 2003, they were "bankrupt" because of insolvency.

Chen Jianguo told reporters: "the turning point is October 2003.