Financing Difficulties Jinjiang Shoe Industry "No Money Sigh"

"Packaging fees increased by 30% to 50%, soles increased by 30%, and technical workers' wages increased by 30%."

On the one hand, RMB appreciation and rising raw material costs and workers' wages, on the other hand, the bank's tightening of money and the increase of private lending interest, the enterprise's capital chain unprecedented embarrassment.

Data show that 90% of Jinjiang shoe enterprises have difficulty in financing, and 80% of those relying on exports are in a dilemma.

According to the official statistics of Jinjiang, in the first quarter of 2008, 309 of the 712 taxpayers of the shoemaking enterprises in the city were in the same period of decline or zero storage, accounting for a decrease of 40% yuan compared to the same period of last year, compared with a decrease of 32 million 770 thousand yuan.

The reason for the shortage of small and medium sized shoe enterprises is that the government's macroeconomic control policies and the triangle debt relationship among enterprises are also key factors besides the cost increase.

On 2007 L2 l0, the people's Bank of China announced that the deposit reserve ratio of the deposit financial institutions should be raised by 1 percentage points. This is the tenth time that the central bank raised the deposit reserve ratio in the year 2007. The deposit reserve rate of banks will reach 14.5%, a record high. The central bank will freeze funds nearly 400 billion yuan.

The 10 increase in the deposit reserve rate has resulted in a total freeze of about 20600 billion yuan.

At the same time, in the 2007 year, the central bank has adjusted the benchmark interest rate of seven loans and loans for 5 times.

In June 7, 2008, the people's Bank of China announced again that it had decided to raise the deposit reserve ratio of the depository financial institutions by 1 percentage points, up by 0.5 percentage points in June 15 and 25, 2008.

As a result, the deposit reserve ratio of commercial banks will go to a historical high of 17.5%.

Moreover, in order to control the lending scale of the banking system in the year of 2008, the regulatory authorities put forward specific requirements for commercial banks, and put forward new indicators for increasing loans every quarter, thus reducing the total amount of loans.

As a result, the funds for commercial banks will shrink again, and borrowing from banks is becoming more and more difficult under tight monetary policy.

The reduction of loans, especially for shoe companies, is even worse.

Many shoe enterprises have fallen sharply due to rising costs and so on. Enterprises are facing major problems that can survive.

Many companies hope to get state loans to tide over difficulties.

However, the tight monetary policy of the state will undoubtedly make the small and medium sized enterprises with weaker competitive capability break down and make the operation more difficult.

Two, the interest rate of private loans is high. The central bank has implemented the macro-control policy, which has led to the reduction of bank loan quota, making it even more difficult for SMEs to obtain loans from banks.

Many enterprises in urgent need of capital have to turn their attention to private lending, which makes "underground finance" private lending "quietly fire".

But there is a "leverage effect" between bank loans and private interest rates. Banks are reluctant to lend, and private interest rates naturally rise.

The high interest expense makes the small and medium-sized shoe enterprises bear more financial pressure.

Three, the "triangle debt" relationship that has been fatal for a long time exists in the "triangle debt" phenomenon in the footwear industry cluster. It seems to have become a business rule. Many business owners have become accustomed to such helplessness.

There are different levels of capital crisis in every production link and sales link. The risk of instability is more and more obvious, and the profit consumption of enterprises is becoming more and more obvious. It has a very big impact on the operation of enterprises, and even the survival of enterprises is serious.

"Triangle debt can also kill people, owe too much money, and the outside accounts will not come back, so many enterprises are so down."

Mr. Shi, who has two buildings with five storeys and tall buildings, has been engaged in shoe business since the 90s of last century. According to him, most of the cheddar enterprises started with family shops have been in debt relationship with each other.

Usury is a common way of financing. Generally, millions of loans are borrowed from each other. Under the oppression of high interest rates, many enterprises often pay debts by assets.

It is understood that the shoe enterprises in Chen Dai town are only about half of the peak period, and some of the brand enterprises have begun to move out, most of which are in disguised form of bankruptcy.