Leather Luggage Enterprises: Financing Expects Mutual Trust Between Banks And Enterprises

Recently, from Guangdong Province The government of Xinxing County has taken the lead. Various financial institutions in the county banking industry and various entrepreneurs in leather goods industry have gathered to discuss the financing of enterprises. This is a month after Xinxing County held a symposium on banks and enterprises in June 6th, and again organized related activities.

Leather industry is one of the traditional industries in Xinxing County. On the scale of development, it has grown from nearly more than 100 ten years ago to nearly 900 now, and its number has increased by nearly nine times. But the leather industry has been divided into the peak season and the off-season. Every year from October to April the year is the peak season for sales. From May to September, sales are low. In the off-season, capital flows are slow and financing becomes an unavoidable problem.

Since the first half of last year, the global economy has been sluggish, and the export of leather goods industry has been blocked. "The peak season is difficult and the off-season is even lighter", prompting the whole industry to become more urgent financing.

Is the plight of leather goods enterprises "expensive and difficult" going on in the industry? How do leather enterprises get out of financing difficulties? A few days ago, Nanfang Daily's new windows reporter interviewed many leather goods manufacturers and banking institutions to find answers.

It is difficult to apply for loans.

Enterprise dilemma:

For businessmen, cash flow is the basis of normal operation of enterprises. Sufficient cash flow can generate profits in itself. For the emerging leather industry, the capital chain is fragile. When capital turnover is difficult, only a small number of orders can be made.

"Business is most afraid of off-season, slow season, slow turnover of capital, business life is very difficult." Mai Zhidong, general manager of gold Yili leather products Co., Ltd., said that leather goods industry has obvious peak season and off-season year, sales peak season, leather goods factory overtime, sales slack season, performance is gloomy, production and operation is difficult to maintain. "In the off-season, we need a sum of money to tide over the difficulties, but it is very difficult to find financing channels." Mai Zhidong said that bank financing often has little hope, mostly to relatives and friends.

Mai Zhidong said frankly that it is difficult to apply for loans to the bank, the procedures are complicated, and the approval process is long. In addition, the loan amount is small, the highest is only 100 thousand yuan, which is a drop in the bucket for a large leather goods manufacturer.

Financing is both expensive and difficult, and it is very impressive for Mai Shaowei, general manager of Xin Deli leather goods factory. In June last year, the Mai Shaowei processing plant encountered financial difficulties, the gap reached 500 thousand yuan, borrowed 200 thousand yuan from friends, still could not fill the vacancy, then applied to the bank for financing, but because the rental plant could not be mortgaged, the bank refused to lend. In desperation, they had to mortgage their own commercial housing.

"If there is no mortgage for commercial housing, it can only borrow from private credit companies, but the interest is too high." Mai Shaowei shook his head. He borrowed money from the public the year before yesterday, but the interest rate was ten times that of the bank. Some of the refractory leather factories were dragged to death.

Liang Zhihua, general manager of PI Lusi leather goods Co., Ltd. often worries about financing difficulties. In recent years, enterprises are doing well, and orders are increasing everywhere. However, in the face of numerous orders, Mai Zhihua was unhappy. "Sometimes, when orders are concentrated, a large amount of working capital is needed, but financing is very difficult. I had to watch millions of orders slip away from me.

It is understood that for small businesses that lease their factories and equipment, obtaining bank loans is indeed more difficult. Even if there is a "three joint guarantee" coordinated by chambers of Commerce and financial institutions, they may not be able to obtain sufficient funds.

　 Unsecured information asymmetry financing awareness

Three causes:

Although the leather industry in Xinxing County has been developing for more than ten years, there are few large enterprises. Small processing plants are everywhere, and the workshop type production mode is difficult to form large enterprises. Most of the factories are rented. This has become one of the reasons for financing difficulties. Without collateral, loans from enterprises to banks will inevitably run into a wall.

Qu Linkun, executive vice president of Xinxing County leather goods industry association, told reporters that apart from unsecured items, there is a lack of communication and communication between banks and enterprises, resulting in asymmetric information, which is also one of the reasons for financing difficulties. Qu Linkun said that in the past few years, a financial institution in the county has developed a financial product, and the public can simply borrow 100 thousand yuan from their account. "Lending in this way is very risky."

Qu Linkun said frankly that the widespread lending form of banks is not targeted. It can not only support the development of small and medium-sized enterprises, but also bring risks to the operation of banks. Some banks even attribute some dishonest behaviors in individual enterprises and personal financing to the entire leather industry, which directly affects the financing of latecomers.

In fact, the information asymmetry between banks and leather goods industry has been varying degrees. On the one hand, banks do not understand the overall market situation of leather goods, and do not dare to lend easily. On the other hand, the manufacturer's boss is not very familiar with the bank lending requirements. Once the approval time is too long, it is a bit impatient.

Chen Yaotang, vice president of new Dongying Village bank, said some owners of leather goods believed that they could withdraw money immediately if they signed and sealed the bank loans. Most of the manufacturers of leather goods are mainly oral agreements, and have no habit of signing contracts. They are also unable to provide standardized price and name information. Materials supplied are incomplete and often can not be audited by banks.

Local observers believe that a weak sense of financing is also one of the reasons for financing difficulties. Most new leather industry bosses are not directly aware of bank financing. Once the leather goods factory is confronted with financial difficulties, the first thing to think is to borrow from relatives and friends, and rarely have the sense of financing directly from banks. Over time, the atmosphere of financing has become increasingly heavy.

ICBC pilot large loan for leather goods enterprises

Explore the way out:

At the symposium, many leather bosses praised the meeting. They agreed that banks and enterprises could only solve the problem of asymmetric information by communicating and communicating with each other.

"After a thorough understanding of banks and enterprises, financing will become easy." Qu Linkun said that a few days ago, the leather goods merchants association and ICBC Xinxing Branch held many rounds of discussions. The banks made loans to some of the leather enterprises with high credit rating and good prospects for development. Some enterprises reached a loan of about 1000000 yuan at a time, which greatly alleviated the difficulties of capital turnover.

ICBC Xinxing Branch official said that through discussions with the chamber of Commerce, the financing method for leather goods industry has been worked out and achieved good expected results. A few days ago, 21 leather goods enterprises were granted loans with different amounts through pilot projects.

"Mutual trust means changing ideas." Qu Linkun said that banks should eliminate fixed thinking and break the ideological misunderstandings that businesses come to loan, and they must be poorly managed and inefficient. "Those who actually go to borrow money really want to do things." In addition, leather goods bosses should also eliminate the idea of "ashamed of loans", put aside their faces and eliminate pressure, so long as enterprises encounter difficulties in capital turnover, they can boldly go to bank financing.

Qu Linkun also said that in addition to strengthening exchanges and enhancing mutual trust, leather goods bosses should learn to hug and warm themselves, and gradually discard the idea of fighting alone, and join Chambers of Commerce to develop together. Qu Linkun said that the establishment of chamber of commerce is aimed at improving the external voice of leather goods industry. On the one hand, the chamber of commerce can recommend banks with good reputation and great potential for financing. On the other hand, it is more advantageous to negotiate with other countries in the form of chambers of Commerce.

Yu Weijun, director of the county's Bureau of information, said that strengthening exchanges and communication between banks and enterprises is very important, but leather goods manufacturers should also operate in good faith. They will use loans from banks to purchase machinery and expand reproduction instead of investing in other fields. Only when the leather industry becomes bigger and stronger, will banks become more lender.