Small And Medium Sized Textile Enterprises Financing Bumpy Road

"It costs thirty thousand yuan to buy two tons of cotton and can be sold for more than half a year, and it can earn thirty thousand yuan. But if it is used for weaving, there will be little profit for deducting high labor costs and land rent."

Textile business week manager said. In the view of many small and medium business owners, in today's business environment, it is better to invest in industries than to engage in industry or expand their scale. For example, participation in private lending is risky but profitable.

Meanwhile, financing It is more difficult for many small and medium-sized owners to lose confidence. Although the government has issued some supportive policies, many enterprises have not seen this life-saving straw. "Selling shares and fighting for funds is only a temporary solution. If these problems still exist, the days will be more and more difficult." Yang Yang, a business owner who runs electronic components, has invested part of his money in selling shares to friends.

A bumpy financing road for an owner

"I sold some of the shares." Yang Yang said with a sigh. Just a few days ago, he sold 30% of his share to a friend. "It seems that the kid who has a big hand has called someone else Daddy! There is no way to save the business."

On the afternoon of July 24th, when the reporter called Yang Yang, he was on a business trip in Beijing. There seemed to be little communication with people in his speech. He spoke with a feeble response to the question of financing. "Now the matter of money has been solved almost."

Asked by reporters, Yang Yang told the story he did not want to mention. Now, this decision has become the most helpless and helpless pain in Yang Yang's mind.

In early 2008, shortly after graduating from college, Yang Yang decided to start his own business and began processing electronic components. Over the past two years, as a result of his careful management, the development of enterprises began to trot all the way. From a small outsourcing processing enterprise to the company with annual sales volume of tens of thousands of dollars, electronic components began to sell to large electrical manufacturing enterprises such as Haier and Hisense.

However, this year, Yang Yang is feeling unable to go. "Lack of funds has always been a difficult problem in the development of small and medium-sized enterprises, especially this year. How can it be said? Now it is more serious than the 2008 financial crisis.

The cost increase, financing difficulties, and capital return are not timely. When talking about the reasons, like many small business owners, Yang Yang also summed it up as three points. "Our foundry enterprises originally belonged to enterprises with relatively low profits, and they could only earn profits through multi sales." But the cost of production is rising. Yang Yang said, like a long body child, with the expansion of enterprises and the increase of orders, more and more capital is needed.

"From the second half of 2009, we began to feel the lack of funds. This year this situation is even more serious. International crude oil prices continue to rise, and the price of PPM and PPE, one of our raw materials, is higher and higher, and rising labor costs are also a problem. "

"On the other hand, the cost of financing is also increasing. The interest on loans is rising, which will float 30% to 50% on the benchmark interest rate for public loans. This is not the main thing. It is hard for us to count on interest rates. Yang Yang said, "I have been doing business for several years, and I have received a lot of money from banks. Banks are still interested in doing business in large enterprises or medium-sized enterprises. The loans to our small businesses, which are 12 million yuan, are small case for them. At the beginning, it was relatively naive and wanted to borrow money from the bank. As a result, when the application was made, it was not this noncompliance that it could not meet the requirements. It was hard to pass the gifts and gifts, and had to wait for complicated procedures. Anyway, it took a half month and a month to be polite. "

"Basically, when you are short of money, you can only think of private lending companies. This is also the main financing method for many small businesses, and the last straw, and now the straw is also increasingly hopeless. At the very beginning, interest can still be sustained. It was enough for 1 million yuan a month, 30 thousand yuan or even 20 thousand yuan, and now it needs fifty thousand or sixty thousand yuan, gross profit margin 15% is good, this is gross profit margin, which makes our profit space smaller and smaller. "

"On the other hand, it is very difficult for us to return the funds. Supply commodity The enterprises are too busy, our customers over there, 3 months of settlement time, plus 6 months of acceptance, a total of 9 months, and our suppliers also asked for no arrears, so that our funds can not smoothly return.

Yang Yang said, because of these reasons, this year, it obviously felt stuck. After the hard maintenance of a business, we felt that we could not do it. The enterprise I started by myself could not see bankruptcy, so I decided to find a friend who sold money to him and sold him 30% of my share in the form of selling shares. I always remember that on the day of signing the contract, I fell to 55% of the 85% stake in the company, and I feel so bad that I haven't slept well now.

Yang Yang said that selling shares and fighting for funds is only a temporary solution. Small and medium-sized enterprises These problems still exist, and the days will be more and more difficult. How many shares can we sell in the meantime? What can we do to save the business?

There are rich companies running loan companies.

The monthly interest rate of 2% or even 5% of the private lending, although the interest is very high, but many small and medium-sized enterprises can not really solve the problem of short money shortage through private lending.

"Some enterprises know that loans can't afford them, but there is no way out." A business owner said that if banks did not consider giving financing, the development of private small loans and the development of SMEs Credit Guarantee Corporation would be better, so that many enterprises could get financing in the short term.

In this case, a lot of well funded enterprises have joined the field of private lending. In Qingdao, the group is one of them.

In order to provide financial assistance to local SMEs and farmers, the Qingdao group launched a small loan company and became a creditor.

"Although it is also a small loan company, the interest rate of corporate loans is almost the same as that of banks. The advantage is that it is more flexible than banks and the procedures are not so complicated." Qingdao Limited by Share Ltd group responsible person said.

According to introduction, 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.

"In addition to the launch group, there are 11 enterprises in the region, each of which is inject capital in proportion to the amount of registered capital." The person in charge introduces.

Although the number of such small loan companies is quite large, 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.

"The main reason why SMEs want to borrow is that interest rates are relatively low and will not be as high as specialized private lending, so they are more popular." A small business main beam manager said. {page_break}

Why not engage in industry?

"According to the fluctuation of cotton prices and the current business environment, if we use the liquidity to fry cotton, we must be stronger than the industry." Zhou manager of textile enterprises said.

From May 2010 to early 2011, cotton prices had nearly doubled in less than a year, as raw materials increased and labor costs rose, and orders declined.

Although there are only a few tons of cotton, these cotton do indeed make Zhou manager taste a bit of sweetness.

Cotton is bought at a price of 17 thousand yuan per ton, while the selling price is 28 thousand yuan / ton, and there is no labor cost. At best, it can only say that there are warehousing charges for some warehouses, so that we can earn tens of thousands of dollars in such a way.

Manager Zhou has been engaged in the textile industry. The company has been running well since the 90s of last century, but the price of raw materials and labor costs have been rising in recent two years.

"From the end of last year to the beginning of this year, it simply can not be done. First, the labor cost has risen by 30%, and the price of cotton has risen to 30 thousand yuan / ton. The enterprises are afraid to take orders." Zhou manager said.

Because of the predicament of the enterprise, the cotton sold by the company has made a fortune without cost. This has made Zhou manager fall into a deep thought. Is the industry that he has been adhering to for more than ten years is really not suited to the present environment?

Not only Zhou Chou, but also his business partners, had come up with this idea. When they worked hard together, they dreamed of becoming bigger and stronger.

"Now we have built a branch factory in other provinces, and the only advantage is that the labor cost is low, but it is also very difficult for enterprises to build factories and raise funds, and the idea of building factories in Qingdao is even opposed by all." Zhou manager said.

Now the company has fewer employees, orders are no longer in the past, Zhou manager's time is also a bit more, he still pays close attention to his daily life of the textile industry, and now the concern is not what new textile products, but the price trend of cotton.

"From the beginning of this year to the present, cotton prices have plummeted. If they continue to fall, they can buy a little bit and wait for the next round of gains." In the words of Zhou Chou, keeping money is also a waste of time. Buying some cotton for investment may make a profit.

At the same time, while looking at cotton frying, Zhou manager also paid close attention to some other investment projects through his friends' introduction. "Now we see that investing in jade, gold and so on is much more profitable and risky than engaging in industry, but it is better than going from bad to worse."

Who can save SMEs from fire and water?

When the small and medium-sized enterprises in the island city have difficulty in financing, the government departments have been studying how to support small and medium-sized enterprises, and have implemented a number of measures to solve the financing difficulties. It is understood that in July 20th, the Municipal Economic Informatization Commission commissioned the SME financing service center and the Far East International Leasing Co., Ltd. jointly organized the "knowledge training class for financial leasing business of Qingdao enterprises", and more than 60 enterprises such as machinery, rubber and plastics, electronics industry participated in the training.

This activity is to help enterprises, especially SMEs, actively respond to the impact of monetary policy adjustment, explore the way of corporate finance outside bank loans, guide enterprises to understand the concept, products and processes of financial leasing, update the concept of corporate financing, and further broaden the financing channels for enterprises.

In addition, increasing the use of foreign capital is also a new way to solve the financing difficulties for small and medium enterprises this year. The unit innovating the way of foreign capital utilization to further expand the field of foreign capital utilization.

It is said that at present, 11 enterprises with equipment leasing demand have helped to finance 150 million yuan.

Recently, the lectures on venture capital institutions organized by the SME Bureau have also made SMEs see signs of rebirth. Indeed, in the ascendant venture capital market, venture capital and private equity funds have indeed injected new blood into some SMEs, enabling small and medium-sized enterprises with excellent resources to continue to develop and even get reborn. However, there are not many enterprises that can be seen by venture capitalists. Most entrepreneurs only have their own share of risk capital. It is very difficult for them to get the appreciation of venture capital, and venture capitalists in the limited space to "tide over the sand" will only look at the matter and start again.

On the one hand, there are measures for financing, but on the other hand, reporters in the interview also learned that many small and medium-sized enterprises have not enjoyed much interest. "Perhaps hundreds of small and medium-sized enterprises have received the support of the government, but the number is too small compared to the tens of thousands of small and medium-sized enterprises in the city." In an interview, a business owner said that the solution to financing was "thunder and heavy rain."

At the same time, reporters have learned that nowadays almost all commercial banks have responded to the call and set up a small and medium-sized enterprise department, and the reality is just like a small business owner who can only say "looks beautiful". There are few enterprises that can really enjoy loans. SMEs often lack collateral, incomplete financial statements, no credit records, and can not meet the lending standards of banks. For banks, ensuring the safety and profitability of funds is a very important aspect. "For small and medium-sized businesses with strong volatility, no bank likes to take this risk." A bank told the head of the public loan department.

This year, under the constantly tightening monetary policy, it is the small and medium enterprises that bear the brunt of the first tightening of monetary policy. Under the background of financing difficulties, enterprises rely on banks for hopelessness, and have invested in the "embrace" of non bank financing channels. Small claims companies, Guarantee Corporation, underground money houses and other names of "shadow banks" emerge as the times require, and are these institutions really able to save SMEs from dire straits?

Build a life-saving bridge for small and medium enterprises

At present, both the Ministry of industry and the local government are introducing policies to help these small and medium-sized enterprises on the edge of the cliff. But how many small and medium-sized enterprises that really enjoy the support policy?

In the interview, reporters learned that under the current tight monetary policy, many small businesses in the island city want to build branches through bank financing, which is very difficult, almost impossible.

"I often see reports that there are support funds, but I never lend money." A small business owner said.

Let's take a look at the small businesses in the island city. Statistics show that a large number of dynamic small businesses have gathered in Qingdao's emerging industries, and their contribution to the city's economy has been increasing. In the first quarter of this year, the proportion of private economy added to SMEs accounted for 51.5% of GDP. The life and death of small businesses is about half of the city's economy. {page_break}

Apart from exports and taxes, the largest social contribution of small businesses is reflected in employment. Because most of them are labor-intensive industries, small businesses can create a large number of employment opportunities and absorb a large number of surplus labor force, which is the main channel and important carrier for expanding employment. At present, there are 507 thousand small business employees in the city, accounting for 48% of the city's total, and 793 thousand of the small industrial enterprises below the scale absorb 1 million 300 thousand employees, accounting for 70% of all industrial employees.

After many setbacks, such as rising raw materials, increasing labor costs and blocking exports, many small and medium-sized enterprises have already been unable to afford to toss, and they are also actively looking for a way out. But it is necessary to transfer money through such a way, and the last straw of financing is very important.

But where is this straw? No one can hear him. Even if a bridge is built, it is only a single timber bridge, and many enterprises are unable to squeeze it onto the bridge.

Zhou Zhongye, general manager of Qingdao Zhongtian knitwear and Textile Co., Ltd. also raised his concerns. If the workshop of Qingdao is not rented, workers will lose their jobs, which is also very troublesome.

Lifesaving bridge should not be a single timber bridge only for individual enterprises. It should be a spacious bridge, which allows small and medium-sized enterprises to ride out the difficult bridge successfully, and is also a life-saving bridge built for the society.

Shandong 70% SME loans, the gap is about 120 billion

According to the latest report released by the Shandong provincial economic and Information Committee on the operation of the industrial economy in the first half of 2011, the financing gap of small and medium-sized industrial enterprises in Shandong was about 120 billion yuan, an increase of 20% over the end of last year. About 75% of SMEs reflected the difficulty of loans, and some enterprises were forced to turn to private high interest loans.

This year, affected by the national macro-control policies, the financing difficulties of enterprises in Shandong province are more prominent. Under the combined action of various factors, such as the tightening of bank credit, the increase in liquidity, the rising interest rate of loans, and the imperfect credit and guarantee system of enterprises, most enterprises in Shandong are short of funds this year.