"Shortage Of Money" Hit The Survival Pressure Increased

Since the beginning of this year, various macroeconomic policy factors have caused unprecedented difficulties in the textile and clothing industry. More international media claim that China's textile and apparel industry is facing the biggest challenge of upgrading the industrial structure in history.

Affected by the industry trend, the "money shortage" attacks further aggravate the survival difficulties of the spinning and weaving enterprises.

In fact, "financing difficulty" has always been the shadow of clothing enterprises.

Many years ago, the responsible person of Henan clothing association bluntly pointed out that the reason why Henan's clothing industry could not be bigger and stronger was that 99% of the small and medium-sized enterprises could not get credit support from banks.

Financing bottleneck is the biggest survival threat for garment enterprises, and many people hold similar views.

When all sectors of society pointed to the absence of China's financial system, a series of favorable policies, such as finance, taxation and finance, which were aimed at supporting the healthy development of small and medium-sized enterprises in July, have been changed from strong demands to reality.

However, can the small and medium-sized clothing enterprises' financial difficulties turn a favourable turn?

Facing the dilemma of 2008, due to the superposition of many unfavorable factors, the tight chain of funds has become a common phenomenon, whether it is a small and medium sized enterprise with low bargaining power or a large scale enterprise with an asset scale of over 100 million.

"I'm afraid it's hard to put all my mind on the exhibition now."

In August 28th, during the Dalian textile and clothing Expo, Zhao boss of an export garment enterprise in Dalian claimed.

For him, at present, the survival of enterprises is the first.

"Financing problems have plagued us for a long time.

At present, the escaping and closing of small and medium sized coastal enterprises have accelerated our heart rate, and we still can not avoid it.

He was worried.

We can say that Zhao's worries are quite representative.

"The current gap in our funds is very serious, and the risk of breaking the capital chain is also increasing."

Zhang Le, manager of Fujian shishida Feida Textile Co., Ltd., said, "the main customers of the company are mainly foreign trade clothing export enterprises in Guangdong and Zhejiang, and garment companies dare not accept foreign orders. We can not start them."

This is only a silhouette of the survival situation of small and medium-sized enterprises in industrial clusters.

The rising prices of raw materials, the appreciation of the renminbi, the rising cost of labor, and the tight supply of energy have had different effects on the small and medium-sized enterprises with high industrial concentration.

In particular, the breakup of the capital chain has made enterprises feel the fear of life and death.

"Last year, we applied for short-term loans from banks, which is relatively easy. We can always get approval within 1 million yuan, but this year we apply for 1 million yuan, which can lend at most 300 thousand yuan. This is still aimed at companies with relatively good reputation. It is very difficult for most SMEs to borrow money from banks."

A medium-sized clothing business owner Mr. Chen told reporters that in order to solve the problem of shortage of funds, they have to take the road of private lending.

Many factors make the small and medium-sized enterprises face a painful choice, or face the breakup of the capital chain and sit back and wait.

However, the crisis of capital chain is still spreading and has not stopped in small and medium-sized garment enterprises.

Following the unexpected bankruptcy of bank loans, suspension of loans and bankruptcy of private creditors, anecdotal reports on three negative news of ITAT of clothing enterprises were listed: setback, emergency layoffs and capital chain tension.

ITAT has created the myth of brand rise by refreshing the traditional business mode, but now it has been trapped in financial difficulties because of its rapid expansion.

It is undeniable that textile and garment enterprises have some difficulties in financing this year.

But in the face of fluctuations in the economic situation and sensitive policies, banks can only turn on the red light.

An economic expert said.

The controversial new deal, a research report on 53 domestic cities and 105 private SMEs, recently showed that with the tightening of credit policies under the macro-control, up to 77% of SMEs expressed difficulties in bank lending.

Small and medium-sized enterprises financing difficulties have become a hot topic in all sectors of society.

Not long ago, the central bank raised 5% of the national commercial banks on the basis of the original credit scale, increased 10% to the local commercial banks, and asked that this part of the quota should be used for small and medium-sized enterprises. Then the policy was released to loosen the loan amount for small and medium enterprises, and the maximum amount of small secured loans for labor-intensive small businesses increased from 1 million yuan to 2 million yuan.

No doubt, the central bank is releasing the signal of credit policy adjustment, which makes many small and medium-sized garment enterprises full of expectation.

But what they are most concerned about is whether the new credit policy can really benefit them.

At present, local media have reported that new loan quotas are being poured into the Yangtze River Delta and Pearl River Delta regions which are concentrated in small and medium-sized garment enterprises.

However, according to the reporter's understanding, some of the heads of garment enterprises are not optimistic about getting tangible benefits from the new policy.

Wang Jiang Tao, deputy chief executive of a down garment production enterprise in Changshu, Jiangsu, is complaining that he has run three banks in a week, and every time he takes the loan procedures of materials, property certificates, enterprise purchase and sale contracts, letters of credit, and so on, he returns empty handed.

Wang Jiangtao said that although the credit policy has been relaxed, it is still unable to extract money from banks.

"Policy adjustment is a good thing for the vast number of SMEs in the predicament, but only a small number of enterprises can finally benefit."

During the interview, economic experts expressed cautious optimism about the relaxation of the credit policy.

He believes that even if credit policies tilt to SMEs, financial institutions are more willing to lend money to large enterprises than to small and medium-sized enterprises from the perspective of working costs and risk prevention.

"To find a reasonable way to change the status quo has entered the agenda of bank credit managers, but banks must first control risks when lending," Mr Ma said.

He said, "in order to get more credit support, in recent years, small and medium enterprises with ability can go to all parts of the country to encircling land.

There are also clothing business owners say that the more than 20 year clothing business is not as good as the revenue from a piece of land.

"In the long run, increasing loans alone can only be a temporary solution. It is difficult to fundamentally solve the financing problems of SMEs."

The clothing industry believes that the pressure of economic restructuring is more concentrated on labor-intensive downstream small and medium-sized enterprises. These problems can not be completely solved by increasing loans alone, but also need other policies to support structural adjustment and industrial upgrading.

Obviously, SMEs are facing not only financial difficulties, but also structural adjustment.

"We are not short of money," Xia Guoxin, chairman of the women's clothing brand, told reporters in early July.

Xia Guoxin said that clothing companies that have gone through more than 10 years have basically had a certain economic foundation and will not be affected because of the turbulence in the industry. "Of course, if there is a large-scale expansion plan, we still need capital support."

Wang Yong, the brand operator of Ernie brand, also said that his company is a brand operation rather than a manufacturing industry. Now, there are 500 stores nationwide.

Reporters learned that Wang Yong founded the company has 12 years, now has two local original brand and a French high fashion brand, just this year many of the overseas OEM counterparts quietly closed, Wang Yong's corporate net profit level maintained more than two figures, but also moved into the new office building.

Since the end of last year, the polarization trend of garment industry has become more and more obvious, and profits are being tilted to 1 / 3 companies. This has become an indisputable fact in the industry.

On the other hand, the above research report also shows that the key to financing difficulties for small and medium-sized garment enterprises is the instability of income, low credibility, poor risk tolerance and lack of qualified mortgage collateral.

"To passively wait for the concept of bank credit or government subsidies, or blindly and eagerly accept the benefits of various policies, is not the final solution for the current troubled SMEs."

Economic experts point out.

In view of this, some media commented that many textile and garment enterprises are experiencing "cold winter". But recently, the frequent adjustment of national policies is limited. Whether enterprises can survive the cold winter or not, to a greater extent, need to "save themselves".

Industry experts also believe that after the labor pains, small and medium-sized garment enterprises need to survive from internal causes.

Whether it is state or government support, or investors' capital injection, they all belong to the external cause. Cultivating new profit growth points through brand and technology is the most effective weapon for enterprises to survive and develop for a long time.