Shoes, Clothing, Small Businesses, Patience, Wait For Loans! When Will "Money Shortage" Be Solved?

A recent survey showed that even if the "small and medium-sized enterprise closure tide" is untenable, many small and medium-sized shoe and clothing enterprises need to solve the dilemma of financing difficulties. It is the consensus of some experts to solve the problem of "money shortage" and not let small businesses of shoes and clothing continue to "wait for loans".

Viewpoint 1: financing predicament urgently needs to be solved

According to the survey, there were three large ones in Wenzhou, Zhejiang. Private enterprise Bankrupt, the owner fled. They are Zhejiang Jiangnan Leather Co., Ltd., Portman coffee and Yueqing three flag group.

"The collapse of these three enterprises is a case, mainly for its own reasons." Zhou Qingming, chief supervisor of Wenzhou banking regulatory bureau, said. Portman's coffee business, which operates many companies, has made mistakes in decision-making and too long in the front line, resulting in capital chain breakage. The three flag group of the main wire and cable company has run away because of the blind cross industry operation, malicious corporate guarantee and loan fraud.

Compared with the above two companies, poor management strategy led to the problem of capital supply, and the closure of Zhejiang Jiangnan Leather Co. Ltd. had nothing to do with the capital chain. The company, which had a net profit of 35 million 250 thousand yuan last year, was paralyzed because its legal representative, Huang crane, owed huge gambling debts and fled in April of this year.

In Wenzhou, officials did not draw equal numbers between the 3 enterprises and the vast number of private enterprises. Wenzhou development and Reform Commission responsible person said that some enterprises now "shut down" is a normal phenomenon in industrial spanformation and upgrading, and can not be simply understood as a precursor to the crisis of private enterprises. Statistics from the Wenzhou Bureau of industry and Commerce showed that in the first quarter, the number of private enterprises in the city dropped by 534, down 14.56% from the same period last year.

The "rumor" of the "collapse tide" of small and medium-sized shoe and clothing enterprises has attracted the attention of the relevant departments. In May 20th, the China Banking Regulatory Commission (CBRC) and the Zhejiang SME Bureau went to Taizhou, Wenzhou and other places for research. At that time, the investigation team believed that the survival of small and medium-sized enterprises had subjective and objective difficulties, but the "collapse tide" argument was "unable to stand".

Reporters in Guangzhou understand the situation is basically similar to Wenzhou. Although some small and medium-sized private enterprises are faced with operational difficulties, the industry generally acknowledges that this is the effect of multiple factors. Such as RMB appreciation, raw material cost increase, labor cost increase, industry structure spanformation and upgrading, and financing cost are too large.

Guangdong Province Small and medium-sized enterprises Xie Hong, Secretary General of the Development Promotion Association, said that the most difficult stage of the financial crisis is that the living environment of small and medium-sized enterprises is on the whole improving. The phenomenon of mass failure of SMEs in Guangdong has not been observed.

Zhang Wenkui, deputy director of the development research center of the State Council, said: "the difficulty of corporate financing has increased, but it is still in the controllable range of macroeconomic regulation.

Point two: high interest loans like "eating opium"

Financing difficulties, high cost of loans, and high risk of private lending are still the main factors that perplex the development of small and medium-sized private enterprises.

Since China's monetary policy changed from "loose" to "stable" in October last year, the central bank has raised interest rates several times and raised the reserve requirement ratio of banks several times. Banks' "reluctant loans" and "poor favours" have risen again.

A survey by the Wenzhou Municipal Economic and Trade Commission showed that local businesses generally faced difficulties in raising funds and raising financing costs in the first quarter of this year. Nearly half of enterprises in the above scale felt tighter, and the situation of SMEs was even more severe.

When reporters visited Wenzhou's local financial institutions and enterprises, they found that many enterprises were overwhelmed by the current situation of macro tightening, tight loans and rising interest rates. At present, there are two popular words in Wenzhou's business circles: waiting for loans, that is, waiting. loan 。 Whoever can borrow money is "holding a tiger and laughing."

Some banks have begun to raise the interest rate or cost of small and medium-sized enterprises voluntarily, so as to realize the "price increase". At present, the bank interest rate in Wenzhou is on the surface of the benchmark floating 30%. In fact, the banks charge the management fees, consulting fees, and deduct and deposit loans in disguised form to raise interest rates to about 1.2% monthly interest rates, more than 1 times the original interest rate.

"This year, not only the loan interest is high, but also a lot of additional conditions have been added." A person in charge of the Jiangsu Dong Du group said that half of the loan amount required for the investment bank's designated financial products would increase the loan cost in disguised form. "The company's loan cost has increased by more than 30% this year". Regarding this, a management personage of Nanjing branch of Xingye Bank said that the credit scale was limited, and the banks themselves were also under pressure. Indeed, some banks tended to raise the loan interest rate of small and medium enterprises, or to increase the service fee to increase their income and reduce the pressure.

The difficulty of loans from large and medium-sized financial institutions has led to the prevalence of private lending. However, this way of financing has huge cost and high risk. Some small and medium-sized enterprises admit that once this way of financing, enterprises are like "walking tightrope". Guangdong silver guarantee Investment Group Co., Ltd. senior executive said, with the tightening of bank credit, Guangdong private financing costs continue to rise. In previous years, the private financing interest rates were between 10% and 20%, and now they are over 30%, and they are still rising. Data from Wenzhou showed that in the first quarter, the overall interest rate of private lending increased by 11.9% in Wenzhou in the first quarter and 8 percentage points higher than the annulus rate.

As a business owner said, "small businesses are different from big ones. If a small sum of money fails to keep up, they will soon die. Today's high interest rate is like eating opium for small businesses. If you don't eat the capital chain, you will break up. Eating will destroy your body. Faced with "legal usury", enterprises are at a loss.

Viewpoint three: need innovation mode to survive.

Financing difficulties, rising labor costs and rising RMB exchange rate are a series of long-standing and predictable challenges that are constantly squeezing the survival space of small and medium-sized shoe and clothing enterprises. How can enterprises "encirclement" in difficulties?

Experts believe that in the context of the state's "prudent" monetary policy for managing inflation, we should effectively manage bank funds and take care of the development of SMEs. Enterprises themselves should actively explore innovative models and enhance their core competitiveness.

Zhang Wenkui believes that, while reasonably reducing the scale of credit, we should implement the credit policy of "differentiated treatment, assistance and control", especially for small and medium enterprises that are in line with the direction of industrial development and have growth.

In addition to the financial macro-control policy should not be "one size fits all", we need to further smooth the lending channels for SMEs. At present, a large number of private capital can not enter the real economy through reasonable channels, and it is urgent to encourage financial innovation.

Although the "collapse tide" can not be maintained, it also sends a severe signal to many small and medium-sized shoe and clothing enterprises. Chen Jun, vice president of Zhejiang chamber of Commerce in Beijing, said: "the survival predicament of small and medium-sized shoe and clothing enterprises forced enterprises to enhance their core competitiveness and speed up the spanformation and upgrading of their product mix."