Wenzhou Smes Encounter The "Repayment Difficulty" Capital Chain On The Brink Of Fracture

"This winter, many enterprises will stop production or go bankrupt because of the repayment problem."

Cai Huantian, vice chairman of Zhejiang international trade chamber, said that before the Spring Festival, a group of small and medium-sized enterprises in Wenzhou will encounter "repayment difficulties" in Wenzhou.

Cai Huantian said, Wenzhou

Most of the industry's products are exported to Europe. Due to the European debt crisis, the reduction of enterprise orders and the decline of exports have resulted in almost no profit for many enterprises.

At the beginning of this year, some enterprises borrowed large amounts of loans from banks and non-governmental organizations. Now the loans are coming to the repayment period. Because the profits of the enterprises have dropped too much, they have not made enough money to repay the loans.

Loan maturity

According to statistics of Zhejiang Bureau of statistics, the profits of Industrial Enterprises above Designated Size in the first half of the year amounted to 120 billion 910 million yuan, and the total profit decreased by 17.5% compared with the same period last year. The drop is 15.3 percentage points higher than the national average.

Wenzhou family

Mr. Li, the boss of the enterprise, said that the biggest problem now is that the accumulated 10 million yuan loan will expire in the next two years. Now banks and small loan companies and private lending institutions are collecting loans.

Mr. Li admitted that 10 million yuan loans were basically used for fixed assets investment such as plant construction and equipment upgrading in recent two years.

"I didn't expect that capacity doubled, but orders decreased year by year.

This year, orders were reduced by 50% and profits fell by nearly 40%.

Excluding workers' wages, equipment maintenance and other daily operating expenses, the profit is less than 500 thousand yuan a month.

He said, "starting from the second half of this year, enterprises will have to repay about 600 thousand yuan a month. Now I don't know how to repay it."

Mr. Li said that some of his loans were borrowed from the local clothing trade associations, and a small part came from non-governmental organizations and small loan companies.

Although bank loan interest is relatively low, many banks require enterprises to pay consultant fees and information consulting fees.

Finally, all the financing expenses actually paid by enterprises, that is, the "comprehensive income" obtained by banks, is at least 30% of the current benchmark interest rate.

Owing to the small scale of Mr. Li's business, it is difficult to get loans directly from banks.

Therefore, if we want to continue to borrow money from banks through the chamber of Commerce, we must repay bank loans first.

Financing costs too high

"What makes the enterprise difficult is that since October, the amount of business orders has begun to increase, and now it is urgent to purchase raw materials.

If we repay the existing funds, we will not be able to meet the purchase needs of raw materials, and the capacity of enterprises will be reduced.

Once we go to private lending, the cost of financing will be even higher.

Mr. Li is in a dilemma.

Wenzhou private lending registration center data show that in September, the average monthly interest rate of private lending in Wenzhou was 1.86%, equivalent to 22.3% of the annual interest rate.

"Now high interest loans are" chronic suicide ", and not borrowing is" acute suicide ".

Cai Huantian said that at present, in addition to the slightly better operation of Enterprises above Designated Size and repayment difficulties, many small and medium enterprises are faced with the problem of high financing cost and difficult repayment of loans in Wenzhou.

Cai Huantian said that many people think that the investment in the industry to make money slow, so began to keen on money to stir up money, thereby raising the cost of financing enterprises.

Although the local government has introduced various policies to support SMEs' financing, the actual implementation seems not optimistic.

Analysts believe that the cost of financing is too high, and some enterprises can not afford it, which has become an obstacle to the development of the real industry at present and for quite some time.

From the perspective of real economic development and productive investment, asymmetric interest rate reduction, structural interest reduction, differential interest rate and so on should be completely and practicable.

Such as reducing the interest rate of small and medium enterprises, lowering the interest rate of productive investment, reducing the loan interest rate of equipment renewal and pformation, and reducing the interest rate of technology import loan.