There are no more than two reasons for enterprises to open platform financing: first, to lay out Internet finance and get a share in the increasingly hot Internet in the future; Second, enterprises are short of money and have difficulties in capital turnover. To make matters worse, the platform cannot borrow money from banks, and local private lending institutions such as small loan companies and guarantee companies cannot borrow money. Suddenly, they discovered the new world of online lending, so they packaged themselves first and then raised funds on a large scale.
Here we only analyze the worst case:
One: funding channels. In the worst case, the enterprise does not have qualified or sufficient collateral in this case, that is to say, the enterprise has been unable to obtain low-interest funds from banks, and its collateral may have been paid twice or even three or four times in private institutions. In other words, the company has been unable to lend to relatives and friends, banks and private institutions, and the capital turnover has reached an unsustainable level. Suddenly discovered the new world of online lending, without saying anything, quickly went online to circle money.