Cash Squeeze, Private Lending Rate Soaring, SME Financing Difficulties

Since this year, the cumulative effect of monetary policy has been gradually emerging.

The survey found that it was continuously up-regulated. Deposit reserve The gold rate and the control of the annual credit limit have made commercial banks borrow heavily. Many companies and individuals have been seeking private lending funds. The interest rate of private lending has generally risen, and even 100% of the annual interest rate has recently risen.

The pressure of the rising cost of capital will undoubtedly be spanferred to the borrowers, resulting in financing difficulties for SMEs. With the increase of cumulative effect, the breakup of the funds chain of private lending has been revealed since April, and we should be on the alert for the rise of risk factors caused by the tightening of silver.

The tightening of silver root causes soaring interest rates for private lending

Reporters recently interviewed small and medium-sized enterprises in Jiangsu, Zhejiang and Guangdong private lending market found that due to tighter bank funds, private lending market has been exceptionally hot this year, private lending rates have been higher than before the festival, or even 10% of the high monthly interest rate.

Huang Minglong, a staff member of an investment company in Guangzhou, has disclosed that if the loan is secured by collateral, the monthly interest rate of the loan is 2.6%-2.8%; if there is no collateral loan, the monthly interest rate is 7%-10%.

Zhou Dewen, President of the Wenzhou Association of small and medium enterprises, told reporters that the Bank of Wenzhou has basically stopped lending to SMEs, and it can only turn to usury. This year private lending rates generally higher than in previous years, 7 days -10 days of short-term loans monthly interest rate may reach 8%-10%, but more than 3 months of the loan interest rate between 3%-5%.

Relatively speaking, private lending rates in Beijing, Tianjin and other places are lower. CITIC and Inner Mongolia International Finance Corporation recently conducted a survey of private finance. The results show that some Guarantee Corporation in Wuhai now have a monthly interest rate of 3.5%-6%, and the monthly interest rate of guarantee agencies in Beijing and Tianjin is between 3%-5%.

According to the general principles of civil law, interest is higher than that of banks. lending rate 4 times is usury, and the higher part will not be protected by law. According to the current standard of RMB loan interest rate of financial institutions in China, the benchmark interest rate for short-term loans within 6 months is 5.85%, 4 times the annual interest rate 23.4%. At present, the interest rate of private lending is much higher than that of the law 4 times.

Although the lending rate in the industry generally exceeds 4 times the benchmark interest rate, Huang Minglong disclosed that interest rates are still within 4 times of the benchmark lending rate on the contract, and the additional interest is added to various kinds of fees.

Zhang Yidong, an analyst at Xingye securities, pointed out that the reserve requirement ratio has been raised continuously. Financial institution The rising cost of capital pressure is very obvious. Banks obtain deposits from customers not only to pay the corresponding interest, but also to pay a certain proportion of funds in the form of deposit reserve into the central bank system. Although the central bank will pay certain interest on the deposit reserve, its interest level is relatively low, and the bank can not recycle the funds. Therefore, for banks, the deposit reserve ratio continues to rise, which means that the cost of capital is raised.

The risk of breaking private lending funds begins to rise.

The increase of bank capital cost is undoubtedly a blow to a company that needs loans. Banks will shift the pressure of rising costs to the borrowers, which will increase the cost of capital and reduce the profits of the whole society.

Reporters learned that loans from the private lending market mostly for small and medium enterprises and real estate enterprises. Generally speaking, private lending is mainly used for short-term turnover. Because many private enterprises do not have the qualification of bank credit, and at the same time, the project has strong volatility, they can only seek private financing.

Lv Wei, chief economist of the Shandong Provincial Department of Commerce, said that 30% of the local foreign trade enterprises could not borrow from banks, and enterprises with low added value were more vulnerable to cash stress problems, making it even more difficult to survive. At the China Fair, many enterprises have reported to reporters that many banks have identified foreign trade enterprises as high-risk targets and that foreign trade enterprises are unable to obtain loans under tight monetary conditions.

In addition to the above factors, convenient procedure is another major driver of private capital. It is understood that the general business from the bank to apply for loans, at least 1 months, for a few days to get a large number of orders for enterprises, to pay high interest financing is worth it.

However, enterprises are forced to seek private lending, which will further increase the cost of financing. Liu Ligang, director of economic research at the Greater China region of Australia and New Zealand, said that as the cost of capital increased geometrically, the risk of its projects would be further enlarged, and the default rate of private sector could also rise.

Zhou Dewen also confirmed that in Wenzhou recently, some small and medium-sized business owners often absconded because they could not afford to borrow money.

The high interest liabilities of enterprises inevitably aggravate the burden of enterprises. Sometimes, although the enterprise has solved the urgent need, the limited benefit of high interest liabilities may be more than gain. After withdrawal from the production and operation process, the loan funds are limited in value, so it is difficult for enterprises to pay their debts due to maturity. They often absorb the new high interest payments to repay the mature high interest liabilities, break the wall and make up for the west wall, and form a vicious circle, which seriously affects the healthy development of the enterprises in the future.

Rationally guide private capital to cooperate with the development of financing market

To solve the root cause of financial shortage, we must solve the financing problems of SMEs. As the financing difficulties of SMEs involve many aspects such as government, financial institutions, enterprises and market environment, experts suggest that the government can draw lessons from the experience of developed countries, guide and regulate private lending activities, and introduce "combination boxing" to perfect China's direct financing and indirect financing, so as to form a more mature SME financing market.

Shanghai finance office stakeholders told reporters that foreign countries generally provide policy support to three types of enterprises: first, high-tech enterprises, such enterprises have higher growth potential, mainly direct financing, seeking listing to raise development funds; two, labor-intensive enterprises, the state has certain policy support for such enterprises lending, thereby ensuring social employment; three, because of financial crisis and other occasional factors leading to insolvent capital enterprises, such enterprises have the possibility of recovering from death if they get guarantees and support. {page_break}

In fact, in recent years, China's banking financial institutions have been promoting financial services for small and medium-sized enterprises. Many banks have set up SME business units, specializing in small and medium-sized businesses, and are also tilting to the SME sector on credit lines. But in addition to bank loans, other financing channels in China are still narrow, and there is still room for expansion.

First of all, we should vigorously develop the financing guarantee market, establish and improve the re guarantee mechanism, and raise the leverage coefficient of financing guarantee. It is understood that the total amount of guarantee liability in China is only 2.5 times the total amount of guaranteed funds, and the upper limit of this proportion can reach 10 times, which means that there is still much room for improvement.

Chen Naixing, director of the SME research center of the Chinese Academy of Social Sciences, said: "at present, the degree of recognition of guarantee institutions in banks is limited, which is mainly related to the lack of re guarantee institutions in China. The government should establish a re guarantee fund to help banks diversify risks. In some countries, a policy bank acts as a re guarantee institution to undertake this obligation and allow it to have a bad debt rate. "

Second, actively promote financial leasing business, breaking through the bottleneck of financial leasing society's low recognition. At present, China's financial leasing accounts for only 5% of the fixed assets investment, while financial leasing in developed countries is an important supplement to bank credit and securities financing, and is one of the three main channels of social capital supply, which is generally around 30%. At present, the biggest problem facing the financial leasing market is that a lot of capital is needed. The most appropriate source of this fund is private capital.

Zhang Huiming, director of the Enterprise Research Institute of Fudan University, pointed out that financial leasing companies are hard to get financial licenses because of strict examination and approval and lack of talents. This also leads to the development of private lending market in disguise. He believes that the government should rationally guide private capital into the financial leasing market, improve the intermediary of information services and decentralize the examination and approval authority.

Wu Xiaoling, vice chairman of the finance and Economic Commission of the National People's Congress, also believes that if an institution absorbs public deposits, poor management will lead to systemic risks. Therefore, prudent supervision must be carried out; but if an institution relies solely on its own capital to finance its shareholders and loans to financial institutions, it does not involve the majority of the public, and it can exercise non prudential supervision.