At present, it is a recognized fact that small enterprises have difficulty in financing. The investigation in Dongguan found that a large number of small and medium-sized shoe enterprises in Dongguan closed down. In addition to the lack of funds due to loan difficulties, other affiliated enterprises, the rise in the price of raw materials and the appreciation of the RMB are also important reasons. ?
Easily involved by related businesses
"I can't stand it anymore," sighed Mr. Dong, a shoe owner in Dongguan yesterday.
Mr. Dong is from Hunan. His shoe company is located in Dongcheng District, Dongguan City. Since its opening in 2004, it has more than 300 employees. He told the reporter that it was not his own fund problem, but the shortage of funds of other small enterprises that had business relations with him, which affected the payment for goods. In business, relationships are interlinked, and the poor capital turnover of others will affect themselves.
The reporter learned that there are dozens of suppliers associated with a shoe enterprise. As long as one of these suppliers cannot continue to operate due to capital problems, it will affect the businesses associated with them.
"Now it is difficult for small companies to get money from banks. In the past, Dongguan Houjie was crowded with people because of the developed shoe industry, but now the shoe enterprises have collapsed and become very depressed," said Mr. Dong.
Mr. Dong told the reporter that he had opened an electronics factory before and had received some orders, but the other party was unable to turn over funds, pay the money, and collect the money, so he had to close it. Up to now, he still has nearly 500000 loans that have not been recovered.
Mr. Yang, the manager of another local shoe company, said in an interview: "Dongguan shoe industry has fallen so much, which is actually a chain reaction. In the final analysis, it is the enterprise that cannot get money. The bank is unwilling to take risks to lend money to companies with no prospects. When one falls down, it will lead to the upper and lower levels, and the result will be a collapse".
Banks are unwilling to provide small loans
Small enterprises have difficulty in financing in many places. Banks are generally reluctant to bet on risks and spend time on small enterprises, as is the case in Dongguan.
The customer manager of a bank in Dongguan said, "Even if you borrow money from a bank in the name of an individual, you can't borrow less than 500000 yuan, let alone an enterprise."
How much should the enterprise loan at least? The customer manager's answer is: more than one million. If the loan is less than 500000 yuan, it will not be lent even if there is a mortgage. His reason is that the bank has to spend manpower and material resources to investigate and do data for the people who apply for loans. This consumption has nothing to do with the loan limit, so the bank is more willing to lend big money to customers. However, banks are not willing to sell "big money" easily.
Huang Chunming, secretary-general of the Leather Shoes Association: It's hard to borrow small money now, but for small enterprises, their projects are small and they don't need much working capital. If they borrow big money from banks, they don't need so much money at all. Secondly, interest will also weigh on them.
Speaking of the capital turnover of the enterprise, Mr. Dong told the reporter that he had not dealt with the bank at present, because as far as he knew, even if there was a mortgage, it would also need a relationship with the bank loan to work. When he needs funds, he would rather withdraw the funds from other projects than run to the bank because he can't borrow money at all. Mr. Dong told the reporter that one of his fellow townsmen's enterprises was very small, and had a cooperative relationship with his factory before. As the funds could not be turned over, the villagers could not borrow money everywhere, and finally had to watch the enterprise close.
When some small business owners have capital turnover problems, they will raise funds from private sources and borrow from friends they know well. The interest rate is generally 20 to 30 percent. There is no guarantee in it, and it is all based on credit. But there are also loan sharks who are not familiar with each other. Mr. Dong believes that if the enterprise makes a slight mistake, borrowing usury will make the enterprise die faster.
Exports may be 30% less than last year
In an interview with reporters, Mr. Dong said that the appreciation of the RMB, the promulgation of the new Labor Law, the rise in the price of raw materials, and the poor economic environment as a whole had caused many Dongguan shoemaking enterprises to close down.
Huang Chunming, secretary-general of Dongguan Leather Shoes Association, told reporters that since the beginning of 2007, the price of shoe materials has increased by 30%. With the appreciation of the RMB, the business owners are not up to the export business. The business owners are not willing to accept the export orders for fear that the depreciation of the US dollar will erode profits.
According to relevant data, there are about 1500 shoe manufacturing enterprises in Dongguan at present, while there are about 2000 other shoe machine supporting enterprises, about 3500 shoe material, leather, hardware, chemical and other related supporting shops, and nearly 2 million employees.
Huang Chunming said that the US dollar did not begin to depreciate recently. Therefore, since the end of last year, many shoe manufacturers have started to reduce export orders and are afraid of taking large orders. In addition to worrying about the impact of exchange rate on final earnings, we are also worried about not finding so many workers to complete the task. He told the reporter that the export of Dongguan shoe industry increased in 2007 compared with 2006. Although the data of 2008 has not been released, he believes that the export of Dongguan shoe industry will be 30% less than that of last year.
Mr. Dong also said that his company now focuses on domestic sales, reducing exports, which decreased by 50% compared with the same period last year.