How can small loan companies develop sustainably?

In 20 12 years, commercial small loan companies that only lend but don't save have entered a critical period, and the first thing to solve is their own sustainable development. With the increasingly prominent problems of agriculture, countryside and farmers and the financing difficulties of small and medium-sized enterprises, commercial microfinance companies came into being. From the perspective of private capital investment finance, the risk of investing in microfinance companies is relatively small. The small loan companies that only save and don't lend have developed into a critical period. Wenzhou is a small loan company with a registered capital of 1 100 million yuan. After the company opened, the loan demand continued to grow and the business volume expanded rapidly. Under the institutional framework of "only lending without saving", the original shareholders have limited ability to continuously increase capital, and their own funds are insufficient for turnover. After the Agricultural Bank of China raised 50 million yuan for it, but the financing of share expansion did not solve the problem of difficult sources of funds for microfinance companies once and for all. Usually, after the funds are released quickly, there is no food in the pot in the later period, which is no different from bankruptcy. In addition, high cost is also one of the difficulties faced by microfinance companies. Small loan companies are faced with the problem of difficult cost reduction and difficult life. Because the amount of small loans is small and risky, it takes up a lot of manpower and finally causes high costs. Some small loan companies have invented a risk-taking mechanism for loan officers to pay insurance premiums. In case of bad debts, they will share the risks with the company. But at the same time, it enlarges the power of loan officers, and management depends more and more on people, not on the system, and is farther and farther away from the banking model. The bigger the scale, the higher the risk. In my opinion, to solve the problem of sustainable development of small loan companies, we should start from several key points. First of all, microfinance companies should solve the problem of financial sustainability. Controlling loan default loss is the cornerstone of sustainable development. In addition, microfinance companies should legally and appropriately raise funds from abroad, such as borrowing from local banks, and then enhance their ability to lend abroad, which will significantly reduce the pressure on financial sustainability. Policy can moderately liberalize the interest rate of small loan companies, or promote the marketization of rural interest rates. Secondly, we should innovate the risk control mechanism. Unsecured or lack of qualified collateral doomed the high risk of microfinance. Through dynamic incentive mechanism or group joint guarantee mechanism, we can effectively prevent the risk of small loans and curb the increase of loss rate. Furthermore, small loan companies should operate on a large scale and realize economies of scale by increasing capital under the condition of limited leverage. Finally, microfinance companies should make the best service radius. Theoretically and mathematically, independent microfinance companies have an optimal service radius. Similar to private finance, the security of small loan companies depends on the relative closeness of the region, and they cannot pursue too much scope, but need an effective boundary to restrain them. If the company's service scope is not limited, it will cause serious information asymmetry, out of control of operation, and various default events will follow. Because explicit (such as interpersonal guarantee) and invisible moral hazard will be infinitely magnified, the cost of principal-agent is too high, and the self-discipline mechanism (through reputation and face) and heteronomy mechanism (through acquaintance supervision) will fail at the same time. 20 12 small loan companies are facing challenges and opportunities brought by rapid changes in external environment and continuous innovation in internal operating mechanism. Companies must seize the important opportunities such as deepening the financial reform system, increasing investment in agriculture, rural areas and farmers, and accelerating the transformation and upgrading of regional industries during the Twelfth Five-Year Plan period, guide private capital to promote the formal transformation of regional grassroots finance, and at the same time realize the harmonious development of regional national economy, especially rural economy, and the sustainable growth of their own capital. Author: Situ Wei source Zhejiang businessmen)