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Where Do Small And Medium-Sized Enterprises Face The Shortage Of Funds?

2011/6/2 17:24:00 145

Recently, many small and medium-sized textile and garment enterprises have reflected that due to tight funds, business inventories have increased.

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With the reduction of the volume of goods and the reduction of the volume of goods, the enterprises have to worry about their survival. With the influence of multiple factors such as the high cost of manpower and the appreciation of the renminbi, the survival of small enterprises may be even more difficult than that of the financial crisis in 2008.

"Now textile small business funds are really very difficult, worse than in 2008, though closing down is not widespread at present."

A person in charge of dyeing and printing enterprises in Wuxi, Jiangsu, told reporters.

According to Huo Jianguo, Dean of the Ministry of commerce research, the survey conducted by the National Federation of industry and Commerce in April in Jiangsu and Zhejiang provinces shows that the situation of enterprises in Jiangsu and Zhejiang provinces is even more difficult than in 2008. One of the problems is shortage of funds.

Financing is just for survival.

Dezhou, Shandong

Home textiles

The person in charge of the enterprise reflects that they have applied for loans with the local small businesses in the form of "joint guarantee", but with the tightening of money, the way of "joint guarantee" is no longer used.

In order to ease financial difficulties, some enterprises have to raise funds for private sector.

However, the high interest and risk of private financing will undoubtedly increase the business risk of enterprises.

When talking about the financing problem, a person in charge of a textile machinery enterprise in Wuxi said that before financing was for development, financing at present is mainly for survival.

Now the head of the enterprise is planning to introduce one or two directors to bring in some money to ease the pressure on the capital.

For a long time, small and medium-sized textile enterprises want to borrow money from banks has always been a troublesome matter, or even simply can not lend.

And whether the private sector can get money? A person in charge of a Cixi enterprise in Zhejiang believes that private financing is relatively easy, but the risk is great.

He said: "the risk of small business loans is positively related to the cost of private lending.

Now the cost of private lending has increased gradually, even higher than that of 2008. This shows that the risk coefficient of small business loans has also increased.

At present, the cost of private lending has exceeded the extent that most enterprises can afford. If the bank loan is due, enterprises will rather not repay bank loans or borrow high cost private funds.

Besides, the cost of obtaining loans from banks is not only the interest rate of loans, but also the additional costs other than loans.

In Wenzhou, private lending has reached a monthly interest rate of 7~9, and the annual interest rate for some loans is as high as 100%.

Tightening money also increased the risk of breakage of small and medium-sized textile and garment enterprises' capital chain.

In areas where private enterprises are concentrated, the idea of small and medium enterprises' default on loans or simply not paying back is increasing, which will bring risks to banks and lenders.

Capital has filled the cost hole.

The head of a knitting enterprise in Qingdao said: "

Cotton price

Up nearly 50%, employment costs rose by 30%. Faced with the rising cost pressure, I felt really inadequate.

In addition, enterprises should pay interest on the increase in the cost of cotton prices. These factors add up and businesses are losing money every day.

Therefore, no bank is willing to lend us loans.

The demand of downstream enterprises is not strong, which makes cotton spinning enterprises hard to live.

Because inventory is difficult to digest at the moment, some cotton mills with tight funds have chosen to stop production; others have chosen to promote sales to return funds, and "cut meat" has survived the inventory digestion period.

At present, many textile enterprises have entered a difficult "inventory period".

A boss of the textile and garment processing trade in the Yangtze River Delta region said: "the cost of labor has risen from 4.5 yuan per person per hour last year to the current 6 yuan.

The amount of money we put into financing is almost useless for product development, and basically we have all paid for the cost increase. "

According to him, labor costs increase, raw material prices and appreciation of the renminbi and other factors increase the cost of enterprises by at least 30%, while the price range acceptable by customers can not exceed 10%.

No one is willing to do such a losing business. Many business owners simply shut the factory down.

He told reporters at the same time, in Wenzhou, Taizhou, Shaoxing and other places, a considerable number of textile processing trade enterprises "closed", and some enterprises are still struggling to "sustain".

According to reports, after closing down, most bosses rely on "eating old books". "Some can rent out the factory premises, lease them at low prices, and pfer them to sell".

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Over the years, China's textile and garment industry has been taking advantage of low cost to occupy the foreign market.

Since the beginning of last year, the rapid appreciation of RMB and the rising price of raw materials have pushed up the cost of production, weakened the competitive edge of export, and started to pfer to low-cost countries such as Southeast Asia.

At present, the shortage of funds in the market is just as bad for the struggling textile and garment enterprises.