Jinjiang Shoe Materials Trust Crisis Spread &Nbsp; Merchants Insist On Cash Pactions

"Lin, why don't we start the production?"

"The merchants designated by the merchants have not placed the order to produce the big bottom. They require us to pay cash in advance.

In fact, during the recent visit to enterprises, similar scenes occurred frequently.

In order to ensure the recovery of goods, many material traders clearly put forward the way of cash collection; the production enterprises, especially the foreign trade processing factories, could not afford the huge sum of raw materials, and had to slow down the production schedule, resulting in the failure of the products to be delivered in time. Because the processing factories could not deliver the goods, the foreign trade companies could not send the goods to the foreign customers in time, and had to face huge compensation.

A cash collection method proposed by upstream suppliers is touting the whole industry.

Behind this phenomenon is the trust crisis triggered by the boss of Wenzhou.

Trust crisis

Ever since the Wenzhou boss's running incident has occurred frequently, the crisis of confidence has been

It is reported that this J company receives this single is such, although receives the single volume is big, compared to those not able to receive the single foreign trade production enterprise, the day is better.

However, shoe makers want to buy soles in cash, otherwise they will not produce, which is very helpless for foreign trade enterprises.

The foreign orders can not be produced without delay, because the time of delivery will lose money. Although this mode of cooperation can not be accepted, they can not change the shoe suppliers because they are all foreign merchants' orders. Foreign businessmen are all designated materials for a shoe material manufacturer. This contract is signed, so the right to speak is not in the hands of the enterprise, which makes the enterprise no room for pformation.

At present, foreign trade enterprises are really very difficult. It is difficult to get a single purchase. It is very difficult to get a single purchase. Because of the shortage of funds, it will be hard to make money if it can make money.

Mr. Wu also told reporters that foreign trade companies were not unwilling to pay advance payments to enterprises, but worried that the production of shoes enterprises received advance payments, but not for production but not for them, which would be too risky for foreign trade companies.

"Who knows where the production enterprises are spending their money?"

Mr. Wu complained to reporters that many business owners are now making money for private financing in order to make money, so that enterprises can make money quickly, but the risk is too great. Look at those entrepreneurs in Wenzhou who are on the run.

In the view of Mr Wu, some shoe makers are reasonable enough to require cash payment from shoe companies before they can make delivery.

In this regard, Shun Chao shoe industry Co., Ltd. vice president Wu Xiaoming analysis, shoe manufacturers demand shoe enterprises cash delivery, because today's shoe-making enterprises most of the financing road is blocked, the market sales decline, for fear that small and medium shoe enterprises can not endure this "cold winter", and they were pulled down the water.

"In particular, the companies with slightly less prestige in the past are not to mention this at the moment. Shoes manufacturers are already very conservative on the list. They prefer to cut production and do not pick up the bill. Now they are only open to some companies that have been working smoothly for a long time, but there are also requirements for cash.

Reporters interviewed a number of different shoe companies found that whether it was domestic sales or not.

It is reported that, in fact, the reporter learned from some people in the industry that now is not like what Lin mentioned above, only some of the big shoe makers require cash payment, but most shoe makers require shoe companies to pay cash to pick up the goods.

"The current situation is that, even if long-term cooperative material providers, in terms of new orders, material traders will also ask for shoe enterprises to pay cash on the deposit, and the proportion will be raised from 30% to 50%.

In order to maintain relations, old accounts will continue in the way they used to.

Lu You (China) Co., Ltd. deputy chief Ceng Qinglin told reporters.

Helpless material trader

"You can't do business in Jinjiang without credit, which is the traditional mode of doing business here."

Mr. Lin, director of Q, a shoe material enterprise in Jinjiang, has said that shoe materials enterprises have always bought raw materials on credit from their own purchase channels, and have used the same way to buy shoes factories on credit. This is different from other parts of the country.

"But now we need cash to get the raw materials, and we naturally demand that the shoe factories pay for the goods."

In addition, according to Mr. Lin, every year, the sum owed by the customers owed by the company is at least several million yuan. It may have been back in three or four months, but now some shoe factories do not have cash turnover, or they have to wait for a few months before they return.

"To tell the truth, we would not have paid a high profit point. If the acceptance bill takes six months to withdraw money, we must deduct several interest points in advance, and deduct the profits from several points."

Mr. Lin complained to reporters that, now, long-term cooperative and reputable customers can still credit, but the amount of credit is not as large as before.

And those new customers or newly cooperative customers only take the money to pick up the goods, they only pick up the phone, and that kind of phone calls from the factory, so that they deliver goods to the door, the goods on credit do not do anything, so they push off a lot of single business.

But he said that it is better than money and goods two empty, and now safety is the first.

And not long ago, reporters in another shoe material enterprise also found that the equipment purchased by the enterprise is coming in this year, but the payment to the equipment dealer is also a way of accepting the bill of exchange, which makes these equipment enterprises also very worried.

In this regard, the shoe material boss Mr. Zhuang also reluctantly said: "all the shoes enterprises pay to me is the acceptance of money orders, where do I pay cash?"

It is reported that most of the cooperative shoe enterprises in the company are large brand enterprises. Therefore, in order to strengthen relations and have more confidence in the development of these brand enterprises, they will not hesitate to accept the acceptance bills and keep them.

But Mr. Zhuang also said that these customer orders have dropped a lot this year, but for safety reasons, they prefer to cut production and refuse to accept the list of foreign trade shoe enterprises.

"If it is not too late, who will be willing to offend and cooperate with the old customers for so many years?"

A boss of a sole business said that the material traders had no choice but to pay cash.