The Financing Cost Of Smes Is High &Nbsp, And Most Of The Profits Are Repaid.

Jun Du Li's boss run off incident opened the corner of Shenzhen folk credit, and the relationship between local SMEs and private credit was revealed. What role did the latter play in the survival and development of the former? Recently, in view of the survival problems of SMEs in Shenzhen, our reporter interviewed experts, academics and insiders.

Many experts said that the difficulties faced by enterprises this year may be more severe than in 2008, and the most prominent problem is financing difficulties.

According to the industry point of view, small and medium-sized private enterprises in China mostly originate from private lending, and also develop in private lending. Private lending is often the last straw to ensure the survival of enterprises.

However, private capital has not been standardized for a long time.

"The government should clearly define private lending, what is illegal financing and what is legitimate private lending. Although there are village banks, Guarantee Corporation and small loan companies, they can not be saved and can not expand their capital." Wang Lizong, member of the Guangdong provincial CPPCC and Secretary General of the Guangdong high tech industry chamber of Commerce, suggested that private capital should be sunny and allowed to enter the financial sector legally.

A financial institution specialized in serving small and medium-sized enterprises shall be established, which shall be jointly funded by state-owned banks and private capital.

However, reporter survey found that in the absence of domestic SME bank, state-owned banks are still playing a major role.

It is understood that at present, almost all state-owned banks have small and medium-sized enterprises, but when they give loans to SMEs, they have strict requirements on the assets and liabilities ratio of enterprises.

"In 2008, there is no single connection, but on the contrary this year, it can not be done alone.

The overall situation of SMEs in Shenzhen is probably even more difficult than that of the 2008 international financial tsunami. Lining, vice chairman of Shenzhen CPPCC and vice chairman of Futian District CPPCC, has long been concerned about the development of SMEs. He is rather worried about the status quo.

In September this year, the Shenzhen municipal CPPCC held a special conference on social management, Li Ningceng introduced that since August last year to July this year, raw material prices for production increased by 60% - 70%; the cost of financing rose by 40% - 50%; wage costs rose 30% - 40%, allowing small and medium enterprises.

Lining said that the difficulties faced by SMEs are not only related to labor costs and rising production costs, but also an important reason for lack of financing channels.

"The situation in 2008 is that there is no money in the market. Now, on the contrary, there is too much money in the market, and there is a lot of money in the hands of the ordinary people, but the normal financial channels can not make the money flow out."

According to his observation, in the case of extreme shortage of market funds, the financing cost of SMEs is high. "The cost of funds they use is very high. From the loan of some small loan companies and Guarantee Corporation, the monthly interest rate is 3 points, the high is 5 points, there are some annual interest rates and even more than 60%. The enterprises simply can not afford it. The loan money can only buy raw materials, most of the profits will be taken to repay the loan, and the bad debts will also increase. The living environment is indeed extremely difficult."

Lining's words were not groundless.

According to a reporter's survey, similar to the case in Wenzhou, private lending in Shenzhen is also growing brutally under the tight market funds. Short term loans ranging from 4 to 5 cents per month are not uncommon. This interest rate has far exceeded the high voltage line that the regulatory authorities stipulate that the loan interest rate should not exceed 4 times interest rate of bank loans during the same period.

It is understood that the annual interest rate of bank loans in Shenzhen is about 12% this year. If we look for non banking institutions, the annual interest rates will be 20% or so.

Guarantee Corporation, investment companies, financial companies and microfinance companies that have been developing rapidly in Shenzhen in recent two years are all sources of lending.

There are nearly 40 small loan companies in Shenzhen. Although they have government licences, there seems to be only one layer of window paper in the minds of many people.

This reputation makes the microfinance industry feel "wronged", "we also regulate the operation within the legitimate scope".

The business at the tip of the knife must be matched with the necessary means of collection.

According to Lin lawyer, a law firm specializing in dealing with loan disputes, lenders will hold the social connections of borrowers' home address, company address, relatives and friends in the absence of collateral. Once the overdue period occurs, the two black and white collection methods will go together, with the exception of necessary legal means, warning of intimidation, personal attacks, harassment of family friends and even more difficult ways to imagine.

For larger loans, the lender will hold enough collateral on hand, such as the land and equity of the enterprise. Because the collection means can not be accepted by the normal people, the general repayment will be made.

{page_break}

Bank Credit:

Unprecedented prosperity of credit products

"100 thousand yuan of unsecured unsecured loans, the bank is willing to do it."

Xiao Wang, an individual merchant, needs to have a shop. If he wants to try the small loan company, it is expected that several banks have told him that he can borrow money, and the rate is even lower than that of the small loan company.

The demand for financing of small businesses is booming, and the competition of large enterprises is becoming more and more intense. In 2011, banks gradually shifted their attention to big enterprises in the past, and increased capital mobilization to help SMEs and even micro enterprises.

The reporter learned from the Shenzhen banking regulatory bureau that in the first half of this year, the balance of foreign currency loans of Shenzhen banking financial institutions was 1 trillion and 800 billion yuan, an increase of 8.88% over the beginning of this year.

Among them, the balance of loans of state-owned banks was 885 billion 600 million yuan, an increase of 5.06% compared with the beginning of the year, the balance of loans of joint-stock banks was 412 billion 900 million yuan, an increase of 7.91% compared with the beginning of the year, and the balance of foreign bank loans was 88 billion 400 million yuan, 0.3% lower than that of the beginning of the year; the balance of loans of other types of financial institutions was 433 billion 700 million yuan, an increase of 21.17% over the beginning of the year.

In these incremental loans, loans for SMEs are much higher than those in other sectors.

"You can finish the loan approval without leaving the house, and the money is directly paid to the account." Mr. Liang, a business finance company, has used the "net loan" small business network financing loan business launched by ICBC.

This product is aimed at the characteristics of short, frequent and fast demand for small businesses, and the whole process of applying, approving, lending and returning loans can become the fist product of SMEs.

This year, there has been an unprecedented boom in bank credit products like this.

Despite the tight loan scale this year, the Shenzhen branch of the bank has set aside 6 billion yuan loan scale for small business loans, accounting for more than 30% of the total credit limit issued by the head office in the whole year.

An industry source said that compared with many other cities in China, Shenzhen's banking resources are very abundant, and the competition among banks is fierce, and competition for innovation of small business credit products has basically formed a credit product line covering various levels of individual businesses, micro enterprises and small and medium-sized enterprises.

He believes that the contact between SMEs and banks is not difficult. The problem is that many enterprises do not maintain good credit records and financial history, such as arrears of wages, no payment of social security and financial chaos.

Thinking

Enterprises: the key lies in self rescue.

"The problem of small and medium enterprises financing is a worldwide problem. Especially now, the global confidence index is decreasing, all banks are tightening loans." Professor Guo Shi Ping, School of economics, Shenzhen University, believes that the development of SMEs in Shenzhen depends on the government's support policies.

If enterprises want to survive in this crisis, the key is to save themselves.

"Small and medium-sized enterprises should make preparations for the winter, save costs, do not expand production again, spend money not resolutely, and spend as little as possible."

Guo Shiping believes that many small and medium enterprises will still focus their efforts on expanding production.

In the absence of loans, enterprises can only turn their attention to the private sector, which undoubtedly exacerbates the risk of enterprise operation.

"Many companies are still bullish thinking. It seems that everything is very profitable.

When the profits are getting thinner, you need to speed up the pformation and upgrade of the enterprise and make some more valuable products. "

An analysis of the country.

According to some low-end manufacturing industries, many experts believe that the market in Shenzhen is very small. For enterprises with great pressure of survival, we may consider subcontracting part of the business, or migrate to areas with cheap production factors, and some industries can also consider direct pfer.

"Some backward enterprises are still old concepts. R & D, production and sales must be done, and the cost is certainly too high."

Wang Lizong said that entrepreneurs should keep the business as a pig and try to subcontract the business which is not strong.

{page_break}

Government: tax cuts for small and medium enterprises

In view of the dilemma faced by private SMEs, how the government should guide enterprises to tide over difficulties is also the most talked about topic in the survey.

From the perspective of government policy, Mr Guo said that the most direct and effective measure at present is to reduce taxes for enterprises.

"Now the enterprises need to pay for all kinds of expenses, such as health, security, fire protection, and all kinds of administrative expenses and operating expenses. The burden is really heavy. It is the best way to lighten the burden on them, so that the enterprise may endure. After a while, the situation is much better."

Guo Shiping thinks.

Lining said that we should improve the construction of the platform for government service enterprises.

He suggested that we should establish and improve the "one-stop" office and "one-stop" service system, abolish unreasonable administrative licensing and administrative fees, and clean up arbitrary charges and arbitrary apportionment, so as to lighten the burden on enterprises.

He said that the fair and trade fairs of small and medium enterprises should be run well, and various exhibitions and exhibitions should be organized at various channels, levels and diversities, and cooperation and exchanges should be carried out.

At the same time, efforts should be made to increase the export tax rebates for small and medium-sized enterprises, and prioritize the export quota and other measures to help enterprises expand the market. Through the establishment of intermediary institutions, cooperation between SMEs and research institutes should be established to help enterprises pform and enhance their innovative capabilities.

For small and medium enterprises with low added value, Lining believes that the government should promote merger and reorganization among enterprises, and give financial support to enterprises with independent innovation after annexation and reorganization.

When it comes to tax cuts, Wang Lizong suggests that small and micro businesses and growing high-tech enterprises should be given preferential tax policies.

The form of discount should also be diversified, such as direct reduction, tax reduction, accelerated depreciation, equipment investment credit, relaxation of fees and so on.

At the same time, he also suggested that the government should first closely investigate the tax and other preferential fiscal policies to find out whether the loans that the enterprises obtain are mainly used for production or for other speculative activities, so as to avoid "good intentions do bad things".

Trade associations: advance together and retreat together to warm up

As the head of the provincial high tech Industry Association, Wang Lizong believes that under the current economic environment, SMEs should not fight alone, and trade associations should play an active role.

He suggested that a financial mutual aid mechanism should be established within the industry. For enterprises with short capital difficulties, short-term loans can be implemented through associations.

Especially for enterprises with upstream and downstream relations, they can no longer "deliver money hand in hand". In times of difficulty, big enterprises help small businesses and old enterprises to help new enterprises to achieve a trade integration.

"In this respect, however, our existing industry associations are still inadequate," according to Wang Lizong. At present, there is still a big gap between China's industry associations and foreign countries, especially when dealing with the global financial crisis.

In the interview, many experts suggested that at this time, the trade associations need to play a role.

It is understood that, in line with international advanced practices, trade associations should not only make correct judgments on the development status and prospects of the industry, formulate countermeasures, let enterprises take fewer detours, and more importantly, enable enterprises to effectively integrate through internal resources and save costs.

According to the responsible person of Guangdong high tech Industry Association, as early as 2004, the association took the lead in implementing a project called "mutual consultant, mutual director and mutual shareholder" project.

According to the person in charge, the "three mutual" project enables hundreds of enterprises to share shares with each other and cooperate with each other in the fields of consultation, decision making and investment, thus greatly saving the cost of enterprises and realizing the effect of optimizing the property rights structure of enterprises.

Wang Lizong, Secretary General of the chamber of Commerce, said: "now many research and development between enterprises and enterprises are identical research and development, resulting in huge waste of funds.

In the process of product sales, there is still vicious competition and big price war.

The enterprise is short of money, so that no one can survive. "

Therefore, he believes that strengthening mutual aid and reducing internal consumption is also a top priority for SMEs to re develop.

Small and medium-sized enterprises have high financing costs, and some loans have more than 60% interest.

Jun Du Li's boss run off incident opened the corner of Shenzhen folk credit, and the relationship between local SMEs and private credit was revealed. What role did the latter play in the survival and development of the former? Recently, in view of the survival problems of SMEs in Shenzhen, our reporter interviewed experts, academics and insiders.

Many experts said that the difficulties faced by enterprises this year may be more severe than in 2008, and the most prominent problem is financing difficulties.

According to the industry point of view, small and medium-sized private enterprises in China mostly originate from private lending, and also develop in private lending. Private lending is often the last straw to ensure the survival of enterprises.

However, private capital has not been standardized for a long time.

"The government should clearly define private lending, what is illegal financing and what is legitimate private lending. Although there are village banks, Guarantee Corporation and small loan companies, they can not be saved and can not expand their capital." Wang Lizong, member of the Guangdong provincial CPPCC and Secretary General of the Guangdong high tech industry chamber of Commerce, suggested that private capital should be sunny and allowed to enter the financial sector legally.

A financial institution specialized in serving small and medium-sized enterprises shall be established, which shall be jointly funded by state-owned banks and private capital.

However, reporter survey found that in the absence of domestic SME bank, state-owned banks are still playing a major role.

It is understood that at present, almost all state-owned banks have small and medium-sized enterprises, but when they give loans to SMEs, they have strict requirements on the assets and liabilities ratio of enterprises, and loan interest rates are much higher than that of large enterprises, so they can not bring effective financing value to SMEs.

"I think banks should relax restrictions, for example, allowing a 20% to 30% asset liability ratio in a year, because small and medium enterprises, whether they are management level or social credit, can not be compared with large enterprises, so they can not be demanded by one standard, otherwise SMEs will hardly grow into big enterprises."

Wang Lizong thinks.

{page_break}

Private credit: interest rates far exceed regulatory high voltage lines

"In 2008, there is no single connection, but on the contrary this year, it can not be done alone.

The overall situation of SMEs in Shenzhen is probably even more difficult than that of the 2008 international financial tsunami. Lining, vice chairman of Shenzhen CPPCC and vice chairman of Futian District CPPCC, has long been concerned about the development of SMEs. He is rather worried about the status quo.

In September this year, the Shenzhen Municipal Committee of CPPCC held a special conference on social management, Li Ningceng introduced that since August last year to July this year, raw material prices for production increased by 60% to 70%; the cost of financing rose by 40% - 50%; wage costs rose 30% - 40%, giving SMEs a burden.

Lining said that the difficulties faced by SMEs are not only related to labor costs and rising production costs, but also an important reason for lack of financing channels.

"The situation in 2008 is that there is no money in the market. Now, on the contrary, there is too much money in the market, and there is a lot of money in the hands of the ordinary people, but the normal financial channels can not make the money flow out."

According to his observation, in the case of extreme shortage of market funds, the financing cost of SMEs is high. "The cost of funds they use is very high. From the loan of some small loan companies and Guarantee Corporation, the monthly interest rate is 3 points, the high is 5 points, there are some annual interest rates and even more than 60%. The enterprises simply can not afford it. The loan money can only buy raw materials, most of the profits will be taken to repay the loan, and the bad debts will also increase. The living environment is indeed extremely difficult."

Lining's words were not groundless.

According to a reporter's survey, similar to the case in Wenzhou, private lending in Shenzhen is also growing brutally under the tight market funds. Short term loans ranging from 4 to 5 cents per month are not uncommon. This interest rate has far exceeded the high voltage line that the regulatory authorities stipulate that the loan interest rate should not exceed 4 times interest rate of bank loans during the same period.

It is understood that the annual interest rate of bank loans in Shenzhen is about 12% this year. If we look for non banking institutions, the annual interest rates will be 20% or so.

Guarantee Corporation, investment companies, financial companies and microfinance companies that have been developing rapidly in Shenzhen in recent two years are all sources of lending.

There are nearly 40 small loan companies in Shenzhen. Although they have government licences, there seems to be only one layer of window paper in the minds of many people.

This reputation makes the microfinance industry feel "wronged", "we also regulate the operation within the legitimate scope".

The business at the tip of the knife must be matched with the necessary means of collection.

According to Lin lawyer, a law firm specializing in dealing with loan disputes, lenders will hold the social connections of borrowers' home address, company address, relatives and friends in the absence of collateral. Once the overdue period occurs, the two black and white collection methods will go together, with the exception of necessary legal means, warning of intimidation, personal attacks, harassment of family friends and even more difficult ways to imagine.

For larger loans, the lender will hold enough collateral on hand, such as the land and equity of the enterprise. Because the collection means can not be accepted by the normal people, the general repayment will be made.

Bank Credit:

Unprecedented prosperity of credit products

"100 thousand yuan of unsecured unsecured loans, the bank is willing to do it."

Xiao Wang, an individual merchant, needs to have a shop. If he wants to try the small loan company, it is expected that several banks have told him that he can borrow money, and the rate is even lower than that of the small loan company.

The demand for financing of small businesses is booming, and the competition of large enterprises is becoming more and more intense. In 2011, banks gradually shifted their attention to big enterprises in the past, and increased capital mobilization to help SMEs and even micro enterprises.

The reporter learned from the Shenzhen banking regulatory bureau that in the first half of this year, the balance of foreign currency loans of Shenzhen banking financial institutions was 1 trillion and 800 billion yuan, an increase of 8.88% over the beginning of this year.

Among them, the balance of loans of state-owned banks was 885 billion 600 million yuan, an increase of 5.06% compared with the beginning of the year, the balance of loans of joint-stock banks was 412 billion 900 million yuan, an increase of 7.91% compared with the beginning of the year, and the balance of foreign bank loans was 88 billion 400 million yuan, 0.3% lower than that of the beginning of the year; the balance of loans of other types of financial institutions was 433 billion 700 million yuan, an increase of 21.17% over the beginning of the year.

In these incremental loans, loans for SMEs are much higher than those in other sectors.

"You can finish the loan approval without leaving the house, and the money is directly paid to the account." Mr. Liang, a business finance company, has used the "net loan" small business network financing loan business launched by ICBC.

This product is aimed at the characteristics of short, frequent and fast demand for small businesses, and the whole process of applying, approving, lending and returning loans can become the fist product of SMEs.

This year, there has been an unprecedented boom in bank credit products like this.

Despite the tight loan scale this year, the Shenzhen branch of the bank has set aside 6 billion yuan loan scale for small business loans, accounting for more than 30% of the total credit limit issued by the head office in the whole year.

An industry source said that compared with many other cities in China, Shenzhen's banking resources are very abundant, and the competition among banks is fierce, and competition for innovation of small business credit products has basically formed a credit product line covering various levels of individual businesses, micro enterprises and small and medium-sized enterprises.

He believes that the contact between SMEs and banks is not difficult. The problem is that many enterprises do not maintain good credit records and financial history, such as arrears of wages, no payment of social security and financial chaos.

{page_break}

Thinking

Enterprises: the key lies in self rescue.

"The problem of small and medium enterprises financing is a worldwide problem. Especially now, the global confidence index is decreasing, all banks are tightening loans." Professor Guo Shi Ping, School of economics, Shenzhen University, believes that the development of SMEs in Shenzhen depends on the government's support policies.

If enterprises want to survive in this crisis, the key is to save themselves.

"Small and medium-sized enterprises should make preparations for the winter, save costs, do not expand production again, spend money not resolutely, and spend as little as possible."

Guo Shiping believes that many small and medium enterprises will still focus their efforts on expanding production.

In the absence of loans, enterprises can only turn their attention to the private sector, which undoubtedly exacerbates the risk of enterprise operation.

"Many companies are still bullish thinking. It seems that everything is very profitable.

In the increasingly thin profits, you need to accelerate the pformation and upgrading of enterprises, and do some highly valued products.

An analysis of the country.

In view of some low-end manufacturing industries, many experts believe that the market of such industries in Shenzhen has been very small. For those enterprises with great pressure to survive, they may consider subcontracting part of their business, or migrate to areas where production factors are cheap.

"Some backward enterprises are still old concepts. R & D, production and sales must be done, and the cost is certainly too high."

Wang Lizong said that entrepreneurs should keep the business as a pig and try to subcontract the business which is not strong.

Government: tax cuts for small and medium enterprises

In view of the dilemma faced by private SMEs, how the government should guide enterprises to tide over difficulties is also the most talked about topic in the survey.

From the perspective of government policy, Mr Guo said that the most direct and effective measure at present is to reduce taxes for enterprises.

"Now the enterprises need to pay for all kinds of expenses, such as health, security, fire protection, and all kinds of administrative expenses and operating expenses. The burden is really heavy. It is the best way to lighten the burden on them, so that the enterprise may endure. After a while, the situation is much better."

Guo Shiping thinks.

Lining said that we should improve the construction of the platform for government service enterprises.

He suggested that we should establish and improve the "one-stop" office and "one-stop" service system, abolish unreasonable administrative licensing and administrative fees, and clean up arbitrary charges and arbitrary apportionment, so as to lighten the burden on enterprises.

He said that the fair and trade fairs of small and medium enterprises should be run well, and various exhibitions and exhibitions should be organized at various channels, levels and diversities, and cooperation and exchanges should be carried out.

At the same time, efforts should be made to increase the export tax rebates for small and medium-sized enterprises, and prioritize the export quota and other measures to help enterprises expand the market. Through the establishment of intermediary institutions, cooperation between SMEs and research institutes should be established to help enterprises pform and enhance their innovative capabilities.

For small and medium enterprises with low added value, Lining believes that the government should promote merger and reorganization among enterprises, and give financial support to enterprises with independent innovation after annexation and reorganization.

When it comes to tax cuts, Wang Lizong suggests that small and micro businesses and growing high-tech enterprises should be given preferential tax policies.

The form of discount should also be diversified, such as direct reduction, tax reduction, accelerated depreciation, equipment investment credit, relaxation of fees and so on.

At the same time, he also suggested that the government should first closely investigate the tax and other preferential fiscal policies to find out whether the loans that the enterprises obtain are mainly used for production or for other speculative activities, so as to avoid "good intentions do bad things".

Trade associations: advance together and retreat together to warm up

As the head of the provincial high tech Industry Association, Wang Lizong believes that under the current economic environment, SMEs should not fight alone, and trade associations should play an active role.

He suggested that a financial mutual aid mechanism should be established within the industry. For enterprises with short capital difficulties, short-term loans can be implemented through associations.

Especially for enterprises with upstream and downstream relations, they can no longer "deliver money hand in hand". In times of difficulty, big enterprises help small businesses and old enterprises to help new enterprises to achieve a trade integration.

"In this respect, however, our existing industry associations are still inadequate," according to Wang Lizong. At present, there is still a big gap between China's industry associations and foreign countries, especially when dealing with the global financial crisis.

In the interview, many experts suggested that at this time, the trade associations need to play a role.

It is understood that, in line with international advanced practices, trade associations should not only make correct judgments on the development status and prospects of the industry, formulate countermeasures, let enterprises take fewer detours, and more importantly, enable enterprises to effectively integrate through internal resources and save costs.

According to the responsible person of Guangdong high tech Industry Association, as early as 2004, the association took the lead in implementing a project called "mutual consultant, mutual director and mutual shareholder" project.

According to the person in charge, the "three mutual" project enables hundreds of enterprises to share shares with each other and cooperate with each other in the fields of consultation, decision making and investment, thus greatly saving the cost of enterprises and realizing the effect of optimizing the property rights structure of enterprises.

Wang Lizong, Secretary General of the chamber of Commerce, said: "now many research and development between enterprises and enterprises are identical research and development, resulting in huge waste of funds.

In the process of product sales, there is still vicious competition and big price war.

The enterprise is short of money, so that no one can survive. "

Therefore, he believes that strengthening mutual aid and reducing internal consumption is also a top priority for SMEs to re develop.