Textile And Garment Industry: Financing Is Hard But No Hero.

In 2011, although the threshold of banks continued to grow, the door for private financing was open, except for the booming microfinance companies.

Small amount

In the rapidly changing era, the three year Hedong three years Hexi, a few years ago to the textile and clothing conference to actively promote the business of commercial banks, now has changed face.

The reporter was informed of the Ji'nan branch of the Shenzhen Development Bank.

In anticipation, the Qingdao group is not short of money. Not only that, they also started to set up a small loan company to become a creditor to provide financial assistance to local SMEs and farmers.

"Interest rates are almost the same as banks, but they are more flexible than banks and the procedures are not so complicated."

Liang Xiaopeng, Vice Minister of Propaganda Department of Limited by Share Ltd in Qingdao, said.

In addition to the launch group, there are 11 enterprises in the region, each of which is inject capital into proportion according to the registered capital.

The company is affiliated to the Shandong financial office. It shares both state-owned shares and local enterprises, but it is mainly staffed by dispatched personnel.

Liang Xiaopeng introduced that the small loan company was founded in February 2009, when it was the second in Shandong and the first in Qingdao.

In the past two years alone, dozens of such small loan companies have emerged in Qingdao alone, namely, two cities in Jimo.

Even so, the small loan company initiated by the company still feels that the loan business is more and the funds are not enough.

As a financial product, the small loan company has also become one of the instant profit points.

In addition to issuing such leading enterprises, many local associations and professional markets are also actively working with the financial sector to provide loans to local SMEs.

This is more common in Guangdong and Zhejiang, and some professional markets in Guangdong regard this as an important aspect of improving services.

Such as Guangzhou Kyushu light textile city and Minsheng Bank, the South China Sea World Textile City and the Nanhai city credit cooperative, to facilitate the financing of small and medium-sized enterprises.

Zhao Runlai, manager of the world textile city in the South China Sea, said that from the middle of March this year, the Nanhai city credit cooperative has granted credit to the world textile city 300 million yuan loan amount.

For loan enterprises, bank staff members participate in the audit, the WTO Textile City guarantees.

So far, more than 40 merchants have applied for loans, 8 have been successfully handled, and the loan amount is 500 thousand yuan ~200 million yuan.

Zhao Runlai further indicated that if the loan companies could not repay the maturing loans, the WTO Textile City would take full responsibility.

Therefore, as long as the WTO textile city agrees to lend money, banks will normally handle the credit limit.

In view of the greater risk, the WTO textile city plan guarantees the implementation amount of about 30 million yuan.

Coincidentally, in recent years, the Datang socks industry in Zhuji, Zhejiang, has also worked with Minsheng Bank to provide small and micro loans for the more than 100 hosiery enterprises of the association, with a guarantee amount of 3 million yuan ~600 million yuan.

In the areas where textile and garment industry takes the lead, the experience of financing is relatively rich, and the means are relatively flexible. In recent years, the central and western regions have been upgrading the status of the textile and garment industry due to undertaking industrial pfer, and the government's financial policies are more powerful. Hunan is an example.

The recently issued "Hunan Provincial People's Government Office's opinions on further accelerating the development of the textile industry" clearly put forward the key support in promoting new industrialization, guiding funds, special funds for technological pformation, development funds for small and medium-sized enterprises, special funds for energy saving and emission reduction and special funds for agricultural industrialization.

The industry's bottleneck technology and key technologies are actively supported by special funds and special funds for science, technology and research.

We should improve the credit service and financing environment for the textile industry, and increase financial support for key textile projects and cotton purchase funds.

Financial institutions in Hunan province should increase credit support to textile enterprises. Credit Guarantee Corporation at all levels should actively provide financing guarantee services for small and medium-sized textile enterprises.

This is a good news for Hunan's textile and garment industry.

Investment preference of financing institutions

The financial crisis in 2008 changed many people's views on the textile industry, including some investment institutions.

Far east Hongxin International Leasing Co., Ltd. is a relatively influential financial leasing service provider in China. It has formed an advantage in many fields such as medical, printing, shipping, construction, industrial equipment, education and so on. 5 years ago, they turned their attention to the textile industry.

Zhang Ye, director of the Far East International Leasing Business Development Department and textile business department, said: "before entering the textile industry, the company has carried out sufficient inspection and certification. The performance of textile enterprises in the financial crisis has given us confidence. Under the impact of the crisis, many textile enterprises have not fallen down but become stronger."

According to the introduction, far east international leasing company has strict requirements for the loan purpose of customers, usually used for purchasing new equipment to get the release.

Although the interest rate is slightly higher than that of the bank, Zhang believes that its advantages are quite obvious: the loan time can be up to 3 years, far longer than the 1 year time limit of the bank, and the loan amount will vary from several hundred million to more than ten billion yuan according to the customer's strength.

Although the inspection lasted for a long time, Far East International Leasing really decided to start the textile business at the beginning of last year. Now 1 years have passed, and the business volume has doubled.

Zhang Ye feels that with the tightening of monetary policy, the urgency of textile enterprises' financing is also improving, so this year's business volume has improved.

At present, Far East International Leasing mainly comes from cotton spinning and weaving in the textile field, while maintaining a strong interest in the chemical fiber industry.

"The biggest loan business we have now is 1 hundred million of loans, most enterprises borrow tens of millions of dollars, and there will not be a 200 million yuan business in the future."

Zhang Ye said the 200 million yuan is mainly for chemical fiber enterprises.

Chemical fiber enterprises are rich in capital, and many fixed assets such as equipment, factories and so on are the main reasons for their high hopes. Moreover, the industry has developed rapidly over the past two years, and enterprises have been recruiting troops to expand their scale.

In view of the future development plan, Zhang Ye said that we should segment the market and release the yardstick.

"We plan to invest in the textile industry in the next 5 years to reach 8 billion yuan ~100 billion yuan, which is a big proportion. Our investment in printing industry is 6 billion yuan."

Zhang Ye said.

He is more confident about this plan. "Any enterprise will be short of money, and textile is no exception, because there will be a time lag between input and return."

In addition, the Far East International Leasing consultation with McKinsey Co also shows that the evaluation method of Far East International Leasing is very advanced.

Although Zhang said that the loan business will be released in the future, it does not mean that all enterprises will be exposed to the sun.

Zhang Ye said without a word: "both sides of clothing are outside, the main part of this industry is personnel processing, labor costs are large, and the demand for equipment is small. It is a light asset type industry, so we do not pay attention to it temporarily."

Zhang Ye said that during the 2008 financial crisis, many toy companies went bankrupt, and the pattern of clothing industry was somewhat similar, so the company was very cautious about their lending.

Of course, for those garment enterprises with relatively complete industrial chains, such as YOUNGOR, they are still treated by high-quality customers in addition to garment processing as well as spinning and dyeing enterprises.

Unlike the Far East International Leasing Company, Finance Companies, which is based on production equipment, has attracted many risk investors' eyes after the financial crisis.

Under the macro policy of stimulating domestic demand, textile and clothing industry is closely related to people's livelihood. It is not surprising that venture capital can generate investment. After all, though the industry is not profiteering, its efficiency is stable.

As a result, a certain textile and garment enterprise has received tens of millions of yuan, even hundreds of millions of Yuan reports from time to time.

In the face of the investment of Hydrangea, many enterprises are full of doubts, which is a double-edged sword.

Similarly, many textile and garment enterprises also love and hate "going public".

The prospect of financing after the listing will give enterprises a keen heart, but pparent management and management will make them less accustomed. More importantly, their right to speak will also be diluted after listing.

Therefore, many enterprises are very entangled in whether they want to go public or not. But listing is the ultimate choice for enterprises to develop to a certain extent and optimize the production and management step by step. So in recent years, we have seen more and more knitting enterprises on the road of listing.

It is reported that Manifen and several other Shantou enterprises are also planning to go public.

Financing and raw materials speculation

Most of the financing of textile and garment enterprises is used for the expansion of the company, but it does not exclude short-term speculation.

Last year, cotton and other raw materials skyrocketing, the industry thought that there are speculation factors of hot money, then as a financial sector how to treat this, and how to prevent the risks?

In the interview, these financial institutions have expressed caution in lending hype.

Speaking of cotton, the salesmen of these institutions know the market well, which surprised reporters.

Shenzhen Development Bank Ji'nan branch loan department business manager said they have been very concerned about cotton, and now cotton prices fell sharply, they have basically closed the business of loans to buy cotton.

But last year, the bank's attitude towards cotton financing was unknown.

Far east international leasing company has made it clear that the loan purpose is basically used for the purchase of equipment by enterprises, and is consistent with the attitude of the state in eliminating speculation.

"We focus on the enterprises that have been developing in the textile industry for a long time. We must wait for two or three years for them to cooperate with them. If we want to borrow and hype from us, it will be very unlikely."

Far east international leasing business development department, textile business director Zhang Ye said.

Although capital is the lifeblood of enterprise development, in the heart of the enterprise, it is not the one that affects their nerves most at the moment.

Yang Yungui, Zhuji economic and Trade Bureau, repeatedly stressed to reporters that financing is not the most troublesome problem for Zhuji Datang hosiery enterprises. What is most worrying to them is the lack of power supply.

"Big business financing is not difficult, SMEs have accumulated over the years, and the Datang Hosiery Industry is mainly exported, orders back in time, there will be no capital chain breaking, even if money is needed, the local socks association also works with banks to provide small loan guarantees."

Yang Yungui said that in the peak season of electricity consumption, Zhuji will have to cut power for two days a week, which will not only make enterprises dare not take orders, but is afraid that it will not be completed on schedule. At the same time, it will also cause workers to return, businesses will be short of work, and the quality of products will also be affected.