In The Era Of High Cotton Prices, How To Pry The "Financing Dilemma"?

"Many cotton enterprises have been affected by the shortage of acquisition funds, which has affected the progress of acquisitions and led to enterprises. Management There are serious problems. " A person in charge of a cotton buying and selling enterprise in Shandong said.

Reporters learned from cotton associations in some places that due to the lack of working capital, many cotton buying and selling enterprises have missed the best time to purchase in 2010. Industry observers believe that "cotton purchasing processing enterprises generally exist resistance." market There are many problems such as poor risk ability, huge demand for funds in the acquisition period, non-standard financial management, imperfect control mechanism, no effective asset collateral, and asymmetric information. Because the current financing system has not yet been improved, the financial institutions' credit concept is difficult to change at a time, and it is difficult to meet the practical needs of cotton enterprises' urgency, frequency, specificity and short.

　 　 Cotton enterprises Financing channels are rather narrow.

At the beginning of each year, it is time for banks to rush loans. Many commercial banks have sent credit lines to branches in 2011. At the beginning of 2011, the domestic credit environment began to tighten and the regulation of banks became more severe. In the case of tight quotas, many small and medium banks only assess through credit risk: who gives high interest and loans to whom. Therefore, people in the industry are worried that the financing of non profit making cotton enterprises will become more and more difficult in 2011. The channels for cotton enterprises to obtain funds are rather narrow. In terms of loans, they generally obtain acquisition funds from the Agricultural Development Bank, while few contacts with other financial institutions often result in a shortage of funds.

Less contact with financial institutions is not what cotton enterprises expect or intend to do. Insiders say that many companies want to maintain good cooperative relations with major banks, but because of their limited collateral assets, financing is often "hit the wall", and cotton enterprises have gradually dispelled the idea of loans from commercial banks, quietly bearing the huge financial pressure during the peak period of cotton purchase.

At the same time, in the circulation of cotton, the original policy loan of agricultural development bank is changing from free to paid and policy to business. Many cotton purchase and sale enterprises are short of funds and miss the best opportunity to purchase cotton. At present, the joint guarantee loan between cotton enterprises in China is still very difficult to achieve. If we want to use the guarantee method to make loans, we must seek professional Guarantee Corporation support. However, the importance of the professional Guarantee Corporation for the financing of the cotton industry chain is far from enough. At present, there are few professional guarantee agencies to enter this field. Professional Guarantee Corporation choose not to enter. On the one hand, they have their own business development plan, and the most important thing is the lack of guarantee platform. Because of the asymmetry of information and the instability of cotton prices, Guarantee corporation often thinks that the risk of cotton purchasing is very high, resulting in a sharp decline in interest in this field.

　　 "Shortage of money" increases the risk of the industry

Different industries, their production and operation rules are very different. "Compared with the general productive enterprises, the cotton enterprises have their particularity, mainly because the difference between fixed assets investment and floating capital is too large, and the amount of floating capital is much larger than that of fixed investment." The boss of a well-known cotton buying and selling enterprise in Hunan analyzed this.

In addition, banks and other financial institutions often apply a long process of loan review to small and medium-sized enterprises such as cotton processing and processing enterprises. For cotton enterprises, bank loans are generally short-term loans, and banks have obvious "loan to credit" sentiment due to their short duration, high accountability and exposure to risks. At the same time, due to insufficient government penetration, the credit system of SMEs has not yet been established, and there is a serious lack of direct financing channels for cotton enterprises.

The shortage of funds not only causes cotton enterprises to get into the predicament of "money shortage", but also increases the risk coefficient of the whole industry. In addition, high interest rates also increase the risk of enterprise operation. A survey shows that 58% of enterprises believe that the interest rate of bank loans is too high to bear. Among them, 50% of enterprises believe that the loan interest rate that they can afford should float less than 10% within the benchmark interest rate, and 33% of enterprises think that they should be in 10%-30%. At such a high interest rate level, plus the cost of loan collateral and guarantee, the cost of financing can reach at least 15%. High financing costs not only discourage cotton companies, but also greatly increase the financial risks of enterprises.

Financial cooperation between banks and enterprises needs urgent innovation

The purchase and sale of cotton and production enterprises are important components of the textile economy. However, broadening the financing channels has become a top priority for enterprises. How to establish an effective financing mode?

In December 31st of 2010, the Hubei Cotton Association organized a special meeting, invited banks, Guarantee Corporation and the responsible persons of cotton enterprises to hold a joint discussion on ways and ideas so as to find a new way to finance and realize the joint efforts between big finance and cotton enterprises. Some Guarantee corporation also saw huge market space in this cooperation mode, tasted the sweetness, and provided loan consultation and loan services for cotton purchasing processing enterprises as priority areas of business. However, although some cotton enterprises have participated in many "bank enterprise docking meetings", they have had a preliminary understanding of the national macro monetary policy and the SME lending policy of commercial banks. However, due to the cumbersome procedures of loan approval and the long time of examination and approval, cotton enterprises often miss the best businesses and affect the operation of enterprises.

"All kinds of commercial banks should constantly introduce financial products suitable for SMEs, and strengthen their credit support through innovative means of service." Experts point out. The first is to set up a customer service department as a professional department of financial services for small and medium-sized enterprises. It specializes in rating credit, pre credit investigation, credit consultation, financial management, and establishing enterprise information base. Two, it is to improve the internal management system, establish an authorized credit system for SMEs' credit service, simplify operation links, shorten the time of examination and approval, and improve service efficiency under the premise of effectively preventing risks. The three is to change the way of credit marketing, actively promote the early intervention of small and medium-sized enterprises, and to establish SMEs' credit relations. They should appoint customer managers to understand their credit needs in an active way, carry out credit rating and credit, and establish dynamic information files. Four, we should specifically design the credit approval process for SMEs, and implement the limited time management system to improve the efficiency of loan approval.

Government led market operation

From 2002, our country began to explore and promote the mode of cotton trading warehouse receipt pledge in the whole country. This mode is that the enterprises with cotton resources will put the cotton in the designated warehouse of the trading market, after the notarization inspection, the warehouse will give out the warehouse receipt, pledge from the trading market to the bank, and the bank will pay the loan according to a certain proportion of the market price. After the cotton market is traded and the buyer pays the money, the transaction market reclaims the warehouse receipt to the bank and refunds the balance after deducting the necessary cost.

At present, this mode has partly solved the problem of shortage of funds for cotton enterprises during the peak season. As a result of full commercial operation, the participants are driven by interests. For banks, it is advantageous to create a new profit growth point by entering the cotton flow field through low risk and quick loan recovery. "We can establish a government led financing guarantee system for SMEs, and establish a series of non-profit guarantee institutions through the integration of relevant resources." Experts point out.

In September 2010, with the support of the Tianjin municipal government's financial services office and the national development and Reform Commission, the Tianjin Cotton Association received 3 yuan of small and medium-sized cotton enterprises recommended by the Dalian Municipal Bank of Tianjin to collect 32 million yuan collectively loans. Collective loans take three modes: "government lead, enterprise voluntary, collective issuance, separate liabilities, unified guarantee, unified organization and market operation". This "collective debt financing mode" has made a good start to solve the long-term financing problem of cotton enterprises.

In May 13, 2010, the State Council issued the State Council's opinions on encouraging and guiding the healthy development of private investment (referred to as the "new 36"). The new 36 item clearly puts forward that it will further expand the scope and scope of private investment, encourage and guide private capital to enter financial services and other fields. It supports private capital to participate in the capital increase and share expansion of existing commercial banks in the form of shares, participate in the restructuring of rural credit cooperatives and urban credit cooperatives, encourage private capital to initiate or participate in the establishment of financial institutions such as village banks, loan companies, and rural financial mutual cooperatives, etc., supports private capital to launch Credit Guarantee Corporation, encourages private capital to initiate the establishment of financial intermediary service institutions, and participates in the restructuring and restructuring of securities, insurance and other financial institutions.

The "new 36 item" is the first comprehensive policy document specifically targeted at the development, management and regulation of private investment since China's reform and opening up. It is of great significance to guide and encourage private investment. The implementation of the new 36 will create a broader market for private capital in the field of financing guarantee for cotton enterprises.