The Bank Collectors "&Nbsp"; Beat Small Shoe Companies To Save Straw.

On May 20th, in the first ten days of May, when the central bank raised the deposit reserve rate for the fifth time, Zheng Zhaofu (a pseudonym) heard a new item with his friends: producing a new type of packaging film.

"High technology, profit margins 100%, both at home and abroad. market " Lao Zheng listened and swallowed his mouth. All of a sudden, the other side of the conversation turned, "this project should be cast in advance." Look at him erect two fingers, "twenty million?" Lao Zheng asked. "Two hundred million!" suddenly, Zheng Zhaofu's heart was cold.

20 years ago, Lao Zheng set up a shoe factory. When it prospered, its output value was 34 million. Two years ago, in order to upgrade and transform, he not only managed shoe factories, but also borrowed money from banks through mortgage assets such as factories, equipment and other assets, and set up a relatively high technology enterprise in the field to produce rubber and plastic materials.

This year, monetary policy shifted from moderate easing to stability. In the first half of the year, the central bank has accumulated more than 18000 billion yuan of bank funds frozen. Lao Zheng and a large number of small and medium-sized entrepreneurs are worried about all kinds of risks after tightening money. He knows very well that if banks borrow money immediately on the grounds that the shoe factories are not operating well, they will get into a great deal. capital Predicament.

Zhou Dewen, chairman of the Wenzhou SME Development Association, predicted that if the credit continues to be tight, 40% of SMEs in China will collapse, even more than the "collapse tide" of 2008. Death or transformation, Zheng Zhaofu wanted to choose the latter, but like the "packaging film" project, everything seemed impossible.

A pair of shoes earn 50 Fen

The shoes factory of Zhengjia is located in the Hengfeng street of Taizhou City, Zhejiang Province, the birthplace of China's private enterprises. The factories and household shoes are built here, so that a table of mahjong tables of Lao Zheng is usually a shoe supplier, shoemaker and foreign trade company's shoe salesman's structure, and keeps 2:1:1's comparison.

According to local media, this is the world's largest medium and low grade injection molding and injection molding. leather shoes As one of the production bases, as of 2007, there were more than 5000 registered enterprises, and the products were exported to more than 140 countries and regions. Here, there is almost no threshold for shoemaking. As long as there is some savings, a family workshop can be built in half a day, and almost all shoemaking companies, like Zheng Zhaofu, have changed the "Adidas" (Adidas) to "adadis" and transformed the "leopard" of PUMA (Puma) shoes into "cat".

Lao Zheng's orders come from Romania, South Africa, South America and other countries. After the financial crisis, although they have shrunk, they have more than 1 million pairs each year and increase year by year, paradoxically, the profits have shrunk. "A pair of shoes, from shoe vamp to sole, rises everywhere, only the price of shoes does not go up." Since the second half of last year, inflation has driven all kinds of raw and auxiliary materials prices higher. For example, the polyamine ester material used in sole has risen from nearly 21 thousand yuan per ton to 25 thousand yuan, or nearly 20%. In the same way, Lao Zheng's production of more than 100 shoe types cost 6% to 10%.

"Moreover, the wages of each pair of shoes have increased by nearly 1 yuan." After raising wage standards in most parts of the country, Jiangsu, Shanghai, Zhejiang and other provinces have raised the minimum wage two times this year. According to the reporter, compared with the same period last year, private enterprises in Jiangsu and Zhejiang provinces have generally taken 25% to 30% wage increases. What makes foreign trade enterprises miserable is the appreciation of RMB. "Make a pair of shoes, make 5 wool at most." Lao Zheng said.

Cost pressures are by no means confined to the footwear industry. "At this stage, the profits of small and medium-sized enterprises generally declined from 8% to 10% to 2% to 3%, and some of them even suffered losses. For a long time, these enterprises are bound to be difficult to sustain. " A vice president of Wenzhou Entrepreneurs Association is like an analysis.

According to the latest statistics from the Ministry of industry and information technology, from 1 to February this year, the deficit of small and medium-sized enterprises above designated size was 15.8%, an increase of 0.3% over the same period, while the growth rate of the deficit was as high as 22.3%. At the same time, the Ministry of industry and Commerce pointed out that small businesses under the scale may be more serious. Cai Zhangsheng, director of the office of Zhejiang SME Bureau, believes that the situation is expected to be more difficult than 2008. At that time, about 6.7 SMEs went bankrupt. {page_break}

Lao Zheng's factory covers an area of nearly ten mu, and employs more than 400 people. The workshop, dining hall and dormitories are crowded everywhere. A veritable labor-intensive enterprise has been awarded the title of "2005 advanced grassroots trade unions". Now, after the workers have shrunk more than half, the factory is empty, and there are two of the four production lines, which are rusty because they haven't been opened for a long time.

"The bank's customer manager has come many times, hoping that the company will expand its scale, improve its operation and reduce its risk of lending." Lao Zheng also wanted to do a lot of things, for example, learning the name of private shoe enterprises "AOKANG group" will replace the double tube fluorescent lamp into single tube, the paper and the reverse side "dual-use", and so on, but these are to reduce the cost is like "pick the bone in the egg".

"In the past few years, I have also considered introducing foreign production management mode to achieve a comprehensive factory, hiring professional managers." But Lao Zheng, who had done everything in his power, could not bear the idea of "letting go". At present, he advocates raising prices, but at the Canton Fair, Lao Zheng found that the maximum price increase allowed by foreign customers was only 3 to 4 cents per pair.

"Although there are many orders, I only accept the return from the regular customers, preferably cash transactions. Now, I ask for stability first and seek transformation at the same time. Zheng Zhaofu has begun to withdraw funds and lay a good way to prevent banks from suddenly lending. Although he is a big kid, he has no confidence in his shoe factory: death or transformation, which is the inevitable outcome of the small and medium sized enterprises. The only difference is just what economic turmoil they are burying in.

As for the direction of transformation, he knows very well that it is the kind of enterprise with a small number of employees and high quality, but in the twinkling of an eye, is he worried that he can manage that kind of talent?

Difficulties in transformation

Zheng Zhaofu, a junior high school culture, may still be a farmer if he doesn't make shoes, and he thinks his situation is different from that of Ji'nan's Hanover, a vegetable farmer who can't bear the decline in vegetable prices. Earlier, Japanese economist Guan Zhi hung came to China to investigate the phenomenon of "increasing production without increasing income" in processing and manufacturing industry.

Many business owners contacted by reporters talked about "diverting", but the difficulty lies in capital and technology. In fact, in Wenzhou, Taizhou and other places, the main street of the city center is a Bank Street. Every one hundred meters, there are more than ten banks "get together", many of which are still advertised as "serving small and medium-sized enterprises", but this is still unable to alleviate the current financing difficulties.

Since November last year, China has raised the deposit reserve rate for 8 times in order to resist inflation. The Wall Street journal believes that in the future, China may continue to raise its level to 23%. At present, the central bank has frozen 18000 billion yuan in the first half of this year, and the major banks have always favoured large and medium-sized state-owned enterprises. Therefore, SMEs have become the main target of "tightening".

It is understood that the loan interest rate of state-owned commercial banks for small and medium-sized enterprises has generally risen by 30% - 50% in Wentai. Even so, only qualified companies can get loans. For example, a commercial bank, Taizhou branch, has only 318 new marketing SMEs last year, of which 213 have been crediting and crediting businesses, with a total letter of 3 billion 717 million yuan.

"The so-called" grab a batch, improve a batch, cultivate a batch ", our basic idea is to select excellent enterprises from various industries, give support and help them grow bigger and stronger. The governor of the bank mentioned above explains this. Therefore, more "not excellent" enterprises were squeezed out.

"In Wenzhou, village banks are mainly targeted at small businesses, but indicators are stuck. As for small loan companies, there are only 1 counties in each district. A consignment bank owner in Wenzhou told the times weekly that these financial institutions were only "a drop in the bucket" for 36 SMEs in Wenzhou, and the lending rates of small loan companies had basically reached the statutory ceiling, that is, 4 times the benchmark interest rate. {page_break}

Because of this, private lending has become an important channel for SMEs to absorb funds. Because of the rising tide, according to the Central Bank of Wenzhou branch, since October 2010, the interest rate of private lending in Wenzhou has been rising all the way, and it has reached the highest interest rate of 40%.

The actual value may be higher. According to data obtained by Zhou Dewen, the monthly interest rate of long-term loans in Wenzhou has risen to 3% - 5%, and the short-term monthly interest rate within 3 months is 6% - 8%, or even more than 10%. These are all usurious loans based on annual interest rates.

The reporter's experience also confirms Zhou Dewen's statement. In May 8th, reporters asked acquaintances to find a financial institution located in the center of Wenzhou City, hoping to borrow 7 million of the value of 7 million of the real estate loan for the initial investment of the project, with a loan period of 4 to 6 months. After repeated questioning of the project, the company reported a monthly interest rate of up to 5%. Moreover, the specific amount of borrowing depends on the real estate valuation.

This side of the bank strictly controls the amount of money, and the private interest rate is high. Under such an external environment, Bai Pengming, a macroeconomic researcher at CIC, believes that 3 problems must be noted in the operation of enterprises: first, to maintain the toughness of enterprises' funds and enhance their ability to resist risks; secondly, to comprehensively assess the capital, technology and human resources of enterprises, so as to avoid blind Mu Kuozhang; finally, to maintain the current industry and to pave the way for the transformation of enterprises.

According to reporters, this is indeed a response to many enterprises, but the problem is that because of insufficient financial strength, and unable to introduce high technology projects, enterprises can hardly upgrade with their own strength. "Before the financial crisis, the factory produced low-grade children's clothing, now mainly engaged in handicraft processing business, is considering the transformation of low-end shoes and hats." A business owner who has racked his brains "transformation" said.

"Take Wenzhou as an example, 10 years ago, entrepreneurs called for the development of technology-based industries. However, the local government has no scientific research resources, and the R & D investment of the state and the government is also very limited. However, due to the strength of private capital in Wenzhou, it is possible to acquire advanced scientific research technology and achievements. However, the government has not been able to twist the private capital into a single strand and conduct centralized guidance. Therefore, hundreds of millions of capital have been wandered around in a confused way and invested in gamblers. A retired Wenzhou famous entrepreneur told reporters.

Bank robbery

"China's foreign trade enterprises have a lot of profits, and with the credit reduction, some of the low profit production capacity is facing closure, which can force other enterprises to adjust themselves and promote the upgrading of the industrial structure." Bai Pengming believes that from an economic point of view, this view is not at fault.

But the other side of the coin is that small and medium-sized enterprises are large households who absorb jobs. "Collapse tide" will inevitably lead to a large number of labor force surplus and increase the unstable factors. Moreover, the quality structure of our workers has not been upgraded.

Zhou Dewen also urged the support of small and medium-sized enterprises. So, in June last year, his office in the West Road of Wenzhou college became a gathering place for a group of business owners. Most of the participants were worried and had all sorts of problems about financing. "I think monetary policy has been too tight, and SMEs have been hurt. At present, 70% of enterprises are unable to obtain loans from banks and are forced to turn to private sectors. Zhou said.

This phenomenon has aroused concern recently due to the bankruptcy of several well-known private enterprises in Wenzhou recently. After the Qingming Festival, the "three flag group" of Yueqing old cable manufacturing enterprise came out of the bankruptcy news. Then, Jiangnan Leather Co., Ltd. of Wenzhou District of Longwan city was closed due to the "run away" of the operator Huang Hexie family. Thereafter, the Wenzhou restaurant chain brand "Portman" and "Hong Shang Ji" boss Yan Qin disappeared for the couple. Although these enterprises have difficulties, the dilemma of co existence is high social liabilities, and they are closed down because of the chain breaking of funds. {page_break}

The Times reporter interviewed several small and medium-sized enterprises in Zhejiang and Taizhou, Wenzhou and other places, and found many similar samples.

For example, A enterprises in Taizhou area, mainly engaged in glass carving business, sales scale of 50 million to 60 million per year. Because of rising costs and declining profits, liquidity has been squeezed since last year. In March of this year, after a loan expired, a bank demanded repayment of 8 million. In order to respond to emergencies, the company borrowed 8 million from the private sector at 30 thousand interest per day, and within a week, it would lend 8 million of the bank to repay usury. However, after the loan was put into operation, the "bad money" bank thought that the social debt of the company was too high and decided to withdraw the credit index temporarily. In the end, enterprises were dragged down by usury.

For example, B, a growing company, produces a plastic pipe that does not deform in a low temperature environment. Over the past two years, its annual sales volume is over 100 billion yuan. At the end of last year, there was a 10 million shortfall in liquidity after further expansion of production. At the beginning of this year, because the credit was tight, at the same time, the enterprise had a certain proportion of private lending. Many banks only committed 5 million of their credit lines. However, a joint-stock commercial bank in the southern region finally decided to grant 10 million credit. Before lending, the bank's chief executive was reported to be troubled by economic problems, and B loans were blacklisted by major banks.

Another example is Wenzhou C, which produces hundreds of millions of dollars in annual sales of plumbing hardware products. Previously, the company secured two and 8 million loans for two brothers, respectively. 10 million. In March and April this year, the two companies were plunged into a financial crisis due to shrinking profits. Subsequently, C enterprises were asked to repay nearly 20 million of their bank debts.

During the visit, a number of business owners told reporters that if the problem of capital appeared, for example, if liquidity was below 30% or the scale of liabilities reached 40% to 50% of the output value, banks would never "give timely relief". On the contrary, hearing of the bad news of some enterprises, banks and private creditors will be able to collect loans together and become the last straw to crush enterprises.