Shoe Enterprises Need To Improve Financial Measures &Nbsp; Crack The Strategy Of "Money Shortage"

In June 10th, it was reported that raw material prices were high in the upstream and labor costs increased.

To this end, the CBRC issued a policy to further improve the financial services of small enterprises, requiring commercial banks to carry out differential assessment of small enterprises' non-performing loan ratios and appropriately improve the tolerance of small enterprises' non-performing loans, in order to make financial resources more inclined to small enterprises to alleviate the "money shortage" of some enterprises.

Experts believe that the introduction of these policies will help small businesses to obtain more credit resources, and to some extent alleviate their difficulties.

However, if we want to fundamentally solve the problem of "money shortage" in small and medium-sized enterprises such as shoes and clothing, we must take many measures to improve our financial development level.

Deflation has a cumulative effect.

Since the beginning of 2010, the central bank has raised the deposit reserve ratio of financial institutions for 11 consecutive times, and has increased interest rates for the four time in order to curb the increasing inflationary pressure.

Since the beginning of this year, the central bank's monetary instruments have been used more frequently, and the deposit reserve ratio has reached the level of "January 1 tune".

Footwear and other small and medium enterprises generally feel the cumulative effect of tightening monetary policy.

Rising costs squeezing profits

On the other hand, because of the superposition effect of RMB appreciation and various rising costs, the pressure of small and medium-sized enterprises is further aggravated.

Since last year, the RMB exchange rate has risen sharply, and at the same time, the cost of raw materials and labor has increased substantially, which has squeezed the profit margins of SMEs to a certain extent.

In this regard, the head of a textile and garment enterprise in Zhejiang told reporters that by the impact of soaring cotton prices and raw material shortages, coupled with fierce competition in the industry, the profits of enterprises were significantly lower than before the financial crisis.

In his view, the average salary of each employee is about 1700 yuan, and the company also has to pay 500 yuan to 700 yuan per person per month for social security payment.

And the current price of cloth rises all the way, further squeezing the profit margins of enterprises.

As the bottom of the industrial chain and the lack of pricing power, garment processing enterprises are very difficult.

Influenced by many factors such as RMB appreciation, the problem of small profit margins of small and medium-sized enterprises is further highlighted.

According to the monitoring data of Wenzhou economic and Trade Commission, the sales value of 35 export oriented enterprises such as locks in the first 3 months of this year dropped by 7% compared with the same period last year, and the profit dropped 30% compared to the same period last year.

These enterprises accounted for more than 25% of the losses, and only 3 of them maintained profits growth.

"The average profit margin of these industries is only 3.1%, and the profit margins exceed 5% of the enterprises are less than 10, which is even more difficult than in 2008."

Cai Zhangsheng, director of the office of Zhejiang SME Bureau, said.

On the one hand, it is difficult for external capital to meet the daily operation needs; on the other hand, the rise of costs compresses the profit margins of enterprises.

Under the "internal and external difficulties", the pressure of SMEs has increased sharply.

Structural imbalance of bank credit

It is thought-provoking that compared with the current problems such as footwear and other small and medium-sized enterprises generally facing "money shortage", many large enterprises, especially some monopolistic enterprises, do not feel the pressure of capital.

On the one hand, these enterprises have certain pricing power and can absorb the cost pressure brought by the rising price of upstream raw materials in the form of price increases; on the other hand, these enterprises have more financing channels than small and medium-sized enterprises, and the cost of financing is relatively low.

For some leading enterprises in the industry, the cost of obtaining loans in the bank only needs to go down even according to the benchmark interest rate, and even if SMEs can obtain the bank's credit, they usually go up on the basis of the benchmark interest rate.

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A survey shows that the overall financing cost of state-owned enterprises is 225 basis points lower than that of private enterprises, and has obvious advantages in financial cost. This advantage is not because the efficiency or profit level of state-owned enterprises is significantly higher than that of private enterprises, but depends on the support of government credit behind state-owned enterprises.

Because most SMEs are difficult to provide effective asset mortgage, coupled with fierce competition in the industry and low risk tolerance, they are at a disadvantage in negotiating with bank loans.

This shows that the "shortage of money" faced by small and medium-sized enterprises such as shoes and clothing is a structural problem to a large extent, which reflects some chronic ills of the bank credit mechanism.

Although the regulatory authorities have introduced a number of preferential policies for small and medium enterprises, the concept of "big banks" is still deep-rooted. It takes time to completely reverse this concept.

Under the current system of China, banks still prefer large quality customers. The financing difficulties of SMEs have not been fundamentally solved. Under the current trend of tightening credit, SMEs' financing difficulties are more serious.

In this regard, Harbin bank investment banking department chief researcher Wang Yaling said.

Finding a solution to "money shortage"

When commercial bank credit is difficult to meet the normal financing needs, most SMEs have to turn to private lending institutions with higher interest rates.

Since 2009, private lending institutions represented by investment Guarantee Corporation have mushroomed all over the country.

According to incomplete statistics of the SME Bureau of Sichuan Province, the proportion of small and medium enterprises in this province to solve the capital gap by bank loans is only 32.17% at the present stage, which means that only 30% of small and medium-sized enterprises solve the "shortage of money" by banks, and most of the other ways come from private high interest loans, which has virtually increased the financing cost of SMEs.

"It is undeniable that private lending has alleviated the financial difficulties of small and medium-sized enterprises to a certain extent, and has filled the financial gap formed by formal financial reluctance to enter or supply, but the illegal operation of some financing guarantee institutions has also increased the risk of the market."

A financial community is worried.

So, how to solve the "money shortage" dilemma of small and medium enterprises such as shoes and clothing? He believes that the fundamental solution lies in raising the level of financial development, forming an open, competitive and market-oriented financing system, and reducing the differences in financing and ownership in terms of ownership and scale.

Xu Ce, Assistant Research Fellow of the Ministry of economic information of the state information center, suggested that to solve the "shortage of money", we need to further improve the financial policy support system, including the establishment of SME development fund, encourage the rapid development of small and medium-sized financial institutions serving small and medium-sized enterprises, and reduce the threshold of financial institutions such as private banks.

Besides, we should constantly improve the SME credit guarantee system and set up a credit collection and evaluation system for SMEs.

Recently, Zhejiang's small and medium-sized enterprises, known as "China's private economy vane", have seen many cases of bankruptcies. The three large enterprises in Jiangnan leather, Portman and three flag groups have declared bankruptcy or bankruptcy in a row, which is a great response.

Why did Portman and other enterprises fail? In the face of pressure such as "shortage of money" and so on, how should enterprises get out of the predicament? With these questions, journalists have conducted many surveys and interviews.

Excessive expansion of bitter fruit

In 2009, the collapse of Wenzhou's well-known shoe enterprises and the escape of chairman Wang Yuejin became the focus of media attention. At that time, the effective implementation of moderately loose monetary policy was considered to be "too loose" by the market.

But in the 2009 with abundant liquidity, the bully group still had "tight money".

Because the profit margins of the shoe industry have been continuously compressed, the bully group, which has been plotting pformation, has bought some mines. The funds come from the industrial companies under the power of Buli, and the accumulated 100 million yuan loan from various banks. There is another small amount of private lending. But in the end, due to poor management, the capital chain is broken, and the result of insolvency ends.

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Zhou Dewen, President of the Wenzhou SME Association, told reporters yesterday that the blind and excessive expansion of enterprises was the main reason for their financial failure and bankruptcy.

Monetary policy is loose and fashionable, and the problem is even more prominent once policy is tightened.

Recently, the closure of Zhejiang Jiangnan Leather Co., Ltd. has become the focus of media attention, and has been interpreted by some people as a major result of financing difficulties.

In response to some media reports about the "money shortage" leading to the closure of small and medium-sized enterprises such as shoes and clothing in Wenzhou, Zhou Qingming, the chief inspector of Wenzhou banking regulatory bureau, clarified that "the closure of these enterprises is a case, mainly due to its own causes."

According to its introduction, the Portman coffee enterprises operating many companies have made mistakes in decision-making and the length of the front line has been too long, which has led to the breakup of capital chain. The three flag group of main wire and cable companies has been running away from the business due to blind cross industry operations, malicious corporate guarantees and bank loans.

The two companies were misled by poor management strategy, which led to the problem of capital supply. The collapse of Jiangnan leather was due to a huge gambling debt owed by their legal representative Huang He and fled in April of this year.

"Some enterprises have a foothold in the main industry, while others seek diversified development and risk diversification. Both have successful cases, and there are also cases of failure. For some enterprises, diversification is very necessary, but they can't spread too much."

A local SME Bureau official told reporters.

Zhou Dewen also said, "diversification does not matter whether it is good or bad. The key problem is that the expansion of enterprises can not exceed the scope of their own capabilities."

Zhou Dewen said that at present, 70% of Wenzhou's enterprises are still in normal production and operation. Although there are financial difficulties, they will not be in danger of breaking up the capital chain.

These enterprises either stick to their main businesses, or shrink their fronts during policy tightening, or further tap the potential to cut costs.

Enterprises should make preparations for rainy days

Guo Bingchao, President of Wenzhou Credit Guarantee Industry Association, told reporters that in 2009, Wenzhou enterprises could easily get a lot of cheap credit funds from banks. At the same time, the foreign government invested heavily in Wenzhou, and many Wenzhou enterprises invested in more lucrative industries such as real estate and minerals.

However, since the second half of 2010, with the tightening of monetary policy and the regulation of the real estate industry by the state, the market environment has undergone great changes.

However, this person also expressed his dissatisfaction with the "big family" of banks. Especially during the period of policy tightening, SMEs encountered more financing bottlenecks.

Li Youhuan also believes that the "money shortage" encountered by some small and medium-sized enterprises such as shoes and clothing is mainly due to the banks' unwilling to lend to SMEs. When SMEs are facing the pressure of rising costs, they want to make pformation and upgrading through loans, but they can not get the support of banks and get into a predicament of survival.

For this reason, experts call for the credit policy to be differentiated, supported and controlled, while reasonably reducing the scale of credit, especially for small and medium-sized enterprises that are in line with the direction of industrial development and have growth.

The CBRC has issued a policy to further improve the financial services of small businesses. It requires commercial banks to conduct differential checks on the ratio of non-performing loans to small businesses, and appropriately increase the tolerance ratio of non-performing loans of small businesses. The policy aims to make financial resources more inclined to small enterprises, so as to alleviate the phenomenon of "money shortage" in some enterprises.

Behind the introduction of this policy, the reality of China's financial services is still uneven.

The policy is not only to tilt the credit policy of small businesses, but also to give small businesses a right to get financial services.

As we all know, compared with large enterprises, small businesses always have greater difficulty if they want to obtain corresponding credit resources.

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In terms of financial rights, small businesses lack a due equality.

This inequality is interpreted by financial scholars as a structural funding gap.

Specifically, at the same time, while some small and medium enterprises can not borrow money, there are quite a large number of large enterprises with abundant funds. The small businesses can not work here. Some large enterprises there can afford to buy land and buy land with bank resources.

It should be noted that this phenomenon is not only seen in the current period of monetary tightening.

Even after China implemented the moderately loose monetary policy since the financial crisis, small businesses did not get the same financial opportunities as big enterprises in the credit market.

In fact, inequality does not only take place in the acquisition of financial resources. Behind the difficult and difficult steps of some small businesses, apart from their weak competitiveness, they are also related to many inequalities.

In addition to the difficulty of obtaining equal rights in credit, small businesses are in a weak position in the fields of industry access, policy support, administrative regulation and so on.

These inequalities are inequality of opportunity.

In the period of economic pformation, inequality of opportunity is more damaging to the formation of market economy and the sustainable development of economy.

When some private enterprises are unable to enter the other side of the glass door due to various restrictions, when some monopolistic enterprises become bigger and stronger and affect the supply and demand environment of upstream and downstream resources, the impact will be on the vitality of the market, the order of fair competition and the creativity and internal driving force of the national economy.

At present, small businesses such as shoes and clothing are not only operating because of tight money, but because development opportunities are becoming increasingly narrow and cramped. From this perspective, SMEs need more equal care and solution.