Recently, the CBRC issued the “small loan company restructuring Provisional Regulations on the establishment of village banks”, thus, the establishment of more than 3 years and the last 2 consecutive profitable small loan companies may be transformed into Village Bank.

This means that in 2008 began a large scale pilot of the small loan company, is expected in two to three years, from the credit not only to keep the loan company (nature of business enterprises), “regularization” for financial institutions. It is understood, is now opened 583 small loan companies did not meet the terms for. The small loan companies to give a clear channel for conversion is intended to regulate the direction of small loan company.

In 2008, small loan companies in the country areas are a large number of textile industry cluster. These companies are mostly local formation of large-scale textile and garment enterprises take the lead. Now, these are expected to “regularization” of private capital but also to remain in the “winter” in the small and medium textile enterprises how much hope?

Textile Enterprises to Solve Pressing

“The textile industry is difficult not happen overnight loans, as the industry average profit margin is low, less than 3%.” Wuxi Jiangyin a business official told reporters that, in addition to a very small number of listed companies and local support of the backbone enterprises, 90% of the textile business loans hard to . Tension in the capital of these enterprises, the main lending by large enterprises. “The textile industry loan interest only a few points, but even in the real estate downturn are also a dozen points, the banks tend to the latter course. Microcredit Company, which is higher interest on loans than banks, but that is a legitimate loan channel, possible solutions to the urgent needs of enterprises. ”

In addition to simplifying lending procedures to reduce the time loans, small loan companies, another benefit is that collateral in various forms. Wujiang Silk Group Co., Ltd. such as the Joint Branch of CITIC Bank Shengze, warehouse receipts in exchange platform to launch businesses pledge. For such loans, Fudan University, Shanghai Logistics Research Institute ZHU Dao that cluster corporate finance, corporate credit default correlation is often large, fixed homogeneous strong closure of the realizable value if they are low risks. “Therefore, the traditional mode of financing secured by real property is not suitable for cluster SME financing, Chattel Mortgage, you can better control risk.” ZHU Dao said.

“The small loan companies are likely to village banks, means that their future access to financial license.” Rural Development Institute Chinese Academy of Social Du Xiaoshan, deputy director, said, “Microfinance is a special product of the context, its ‘not only keep credit’ of the limit itself exists drawbacks, the South can be a lot of small loan companies money lending, face ‘famished’ case illustrates the point. In a sense, access to finance not only the license State support for rural finance, small loan companies are also developing their own survival and the inevitable. ”

With the “regularization” of hope, the small loan companies have more momentum in the difficulties for small and medium textile enterprises, it is undoubtedly good news.

Textile Enterprises Not Touch Raw Nerve

According to regulations, small loan company’s registered capital ceiling is 200 million yuan. “Although small loan companies can to some extent alleviate the problem of a shortage of funds business, but as a form of private capital concentration, small loan company funds are limited, can benefit from the enterprise will not be too wide.” Industry experts pointed out that small loan companies because the investment enterprises are the strength of the local influential enterprises, owners of local businesses to grasp the situation very clearly. “For a considerable part of the much-needed capital but weak foundation of enterprises, as a greater risk, small loan company apparently does not easily lend them the money.”

Jiangsu Shengze’s interview, the boss of a large chemical company, said the current crisis is not just rely on loans can be resolved. By the international financial crisis, Europe, America, Japan and other countries of the spending power of the doldrums, demand is not, is the biggest crisis faced by the enterprises. Wenzhou, a clothing OEM business owner, despite his urgent need for working capital to enterprises in production, but because the “small loan interest rate too high”, he of the small loans, “not too interested.”

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