Polyurethane Downstream Leather Shoes Business Loans Difficult

The downstream textile, shoemaking, leather and toy businesses are deeply affected by tight banking, appreciation of the renminbi, rising prices of raw materials, and rising labor costs.

The Secretary General of the Textile Association told reporters that tight funds, weak restructuring, no pformation and high production costs are the four big mountains in front of the small and medium-sized enterprises in the downstream of the PU.

Polyurethane raw materials manufacturers have said that because of this year's market, the demand for some enterprises in the downstream enterprises is not high, which also causes the supply and demand of some raw materials for the oversupply of polyurethane, resulting in the imbalance of supply and demand in the market.

A textile enterprise in Wenzhou, Zhejiang, said that small and medium-sized enterprises had no advantage in competition and faced with great pressure of funds. In the absence of funds from banks, enterprises had to rely on borrowing high interest rates and high-risk funds to ensure that the capital chain continued.

It is reported that the relevant departments in Zhejiang have begun to take measures to protect small and medium-sized enterprises.

On the one hand, we should vigorously develop small loan companies, and encourage mergers and cooperation on the other hand, and support each other through complementary advantages and equity replacement.

According to the insiders, the departments concerned need to take measures from the aspects of Taxation, credit and export trade to make relevant adjustments so as to help the labor intensive enterprises such as textile, shoemaking, leather and toys downstream of the Pu river get rid of the difficulties and usher in the dawn.