The most direct manifestation of the difficulty of financing for furniture enterprises is the poor bank credit channel. The credit dilemma faced by furniture companies has become a bottleneck restricting the development of enterprises. Since the beginning of this year, the furniture industry is also facing the impact of rising raw material prices, rising labor costs, and falling orders. Moreover, some furniture companies have also experienced a shortage of funds. Especially in the western region, the performance of SMEs is more obvious. To solve this problem, the Chengdu Association has taken the lead in creating a fixed-point bank for home financing.
The most direct manifestation of the difficulty of financing for furniture enterprises is the poor bank credit channel. The credit dilemma faced by furniture enterprises has become a bottleneck restricting the development of enterprises. Since the beginning of this year, the furniture industry is also facing the impact of rising raw material prices, rising labor costs, and falling orders. Moreover, some furniture companies have also experienced a shortage of funds. For most furniture companies in the development stage, solving the contradiction between enterprise expansion and liquidity is a topic of common concern between industry associations and enterprises.
Western small and medium-sized enterprises have narrow financing channels
SME financing channels are relatively narrow. In the western region, the financing channels for SMEs mainly rely on owners' investment, internal fund raising and bank loans. Although venture capital, stock exchanges, bonds and other financing channels are used occasionally, their support for small and medium-sized enterprises is small and their role is limited.
Bank lending is popular with SMEs, but loans are difficult. From the perspective of capital demand, compared with large enterprises, the demand for funds of individual SMEs is not large, but most SMEs have a shortage of funds, and the demand for funds for SMEs is quite large. SME loans are often subject to the following aspects: First, there are no high-value collateral. Since most small and medium-sized furniture enterprises are all produced in leased factories, the equipment is not worth the money, and it is difficult to meet the mortgage guarantee conditions for bank loans. For banks, the risk of lending is relatively high. Secondly, the financial management of SMEs is generally not standardized, and there is a big gap from the modern financial management system. Banks, especially large commercial banks, often reject SMEs on the grounds that the SMEs' financial system is not sound or lacks collateral assets. On the contrary, some small and medium-sized financial institutions can meet the financing needs of SMEs after they have an in-depth understanding of the actual production and operation status of the enterprise and objectively assess their credit demand and credit risk. Finally, the basic banks have relatively limited authority to issue loans, and their enthusiasm for issuing loans is generally low. In general, it is more difficult for furniture companies to obtain loans from banks. The company’s own problems also affect financing.
From the perspective of SMEs themselves, the reason for the financing difficulties is that there are internal reasons: First, the management system is flawed. Most SMEs have problems such as ambiguous boundaries of property rights, false ownership of property rights, non-discrimination of ownership and management rights, and unclear claims and control rights. Second, their own competitiveness is not strong. SMEs are mostly labor-intensive enterprises, relying mainly on cheap domestic raw materials and labor to maintain low prices and survive and develop. Third, the quality of management personnel is not high. Although some entrepreneurs of SMEs are very successful, for most SMEs, the management level of their operators is not high, and the management and management concepts of modern enterprises are lacking.
Some SMEs are financing through informal financial channels. Due to the limitations of relatively closed information and weak asset collateralization, SMEs face greater difficulties in obtaining loans from formal financial institutions such as banks. The financing timeliness of enterprises has forced some SMEs to turn to informal financial channels such as commercial credits and private lending. Although the financing costs of these channels are often higher than the financing costs of formal large financial institutions, they can better adapt to the business flexibility requirements of SMEs.
The association takes the lead in creating a fixed-point bank for home financing
In order to help Chengdu furniture enterprises solve the problem of “financing loans difficult†and build a bridge for exchanges and cooperation between enterprises and banks, Chen Li, general manager of Chengdu Small and Medium Enterprises Department and Chen Li, secretary general of Sichuan Province Federation of Industry and Commerce Home Decoration Industry, held a credit contract at the end of 2010. In the ceremony, Chengdu Bank awarded 1 billion yuan to the Sichuan Provincial Federation of Industry and Commerce Home Decoration Industry Chamber of Commerce to provide financial support to eligible member companies in the home industry.
“Without asset collateral, commercial loans can also be made.†For the financing difficulties of small and medium-sized enterprises in the furniture industry, Chengdu Rural Commercial Bank’s Tuqiao Branch launched timely “financial insurance loans†and other financial products. This financing method has effectively alleviated the funding gap of small and medium-sized furniture companies and gained industry attention. For a long time, due to the small scale of small and medium-sized enterprises in the furniture industry and the lack of certificates of assets, some financial institutions have blocked the SMEs from financing thresholds in order to control risks. With the emergence of increasingly flexible and fast financial products such as “joint insurance loans†and “credit loansâ€, the once-unbreakable financing bottleneck of SMEs has gradually been broken.
Chengdu Rural Commercial Bank Tuqiao Branch has long been committed to the financial services of small and medium-sized enterprises in the furniture industry, and its financial products have been welcomed by Chengdu small and medium-sized furniture companies. In response to the concerns of many entrepreneurs about products and services, Chengdu Rural Commercial Bank Tuqiao Branch actively explored new solutions. In addition to the already launched joint guarantee loans and micro-credit loans, the “list system†and “commissioner management system†were introduced to provide full coverage for the furniture industry. The list system is to launch a list of distributors or material suppliers for the furniture market, to implement mutual insurance, joint guarantee and credit for enterprises in the list, and to carry out some value-added services; the management system of the commissioner is to the sales department and the Taipingyuan branch office. Two points are used to manage the enterprises in the furniture industry. The enterprises in the jurisdictions have financial commissioners on-site services to solve the financing needs for the enterprises. At present, the main service varieties of Chengdu Rural Commercial Bank Tuqiao Branch include working capital loans, joint guarantee mutual credit credit, POS service and wages.
In terms of financial products, the Tuqiao Sub-branch launched a joint guarantee, mutual insurance, Tianfu Xingxin Loan and a RMB 1 million commercial exchange credit card, dealer small credit loan products and business lease loan projects. . Chengdu Rural Commercial Bank Tuqiao Branch has served 34 furniture enterprises, with a total amount of 500 million yuan, accounting for 30% of the entire branch's credit supply. According to the list of brand companies provided by the Chengdu Furniture Association, the number of brand companies that have established credit relationships with them has accounted for about 10%. In the next few years, the Tuqiao Branch will strive to increase the proportion of credit support to brand companies to over 30% through innovations in financial products and services. At the same time, the Tuqiao Branch also hopes to “deep through†the furniture market financing services. The financial service target not only includes furniture manufacturing enterprises, but also covers the upper, middle and lower reaches of the furniture industry industrial chain, namely material supply, manufacturing, and furniture exhibition. , furniture marketing and other furniture industry.
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