Small loan companies play a very important role in rural areas, listed companies and small and medium-sized enterprises.
First of all, it improved the financial services in rural areas, standardized and guided private financing, and promoted the development of small enterprises and the construction of new socialist countryside.
Secondly, small loan companies in which listed companies participate in shares belong to non-bank financial institutions. Investing in the establishment of a small loan company is conducive to accumulating experience in investing and managing financial business, enhancing corporate reputation and reducing the operational risk of a single main business.
For small and medium-sized enterprises, "financing difficulty" is still the bottleneck restricting their development. On the one hand, although banks have set up credit services for SMEs, it is difficult for SMEs to obtain loans from banks because of the lack of collateral. On the other hand, the financing mode of SMEs is relatively single, lacking direct market financing channels. At the same time, due to the impact of the international financial crisis, the inventory of enterprises has increased substantially, resulting in liquidity difficulties and certain risks in the capital chain. However, small loan companies make up for the risk of capital flow breakage of small and medium-sized enterprises, which will greatly promote the steady and rapid development of small and medium-sized enterprises and stimulate regional economic growth.
As a new type of financing institution, microfinance companies mainly play the role of gathering private capital, optimizing the allocation of financial resources, standardizing private lending and maintaining economic and financial security and stability. Although the loan interest rate of microfinance companies is higher than that of banks, it is a way to solve the loan demand of small and medium-sized enterprises because its threshold is lower than that of bank loans. Moreover, the loan methods of microfinance companies include credit loans, secured loans and mortgage loans, which are more flexible and faster than bank loans. Loan approval is also much simpler than that of banks.
Flexible mortgage conditions are the biggest competitive advantage of microfinance companies. Microfinance companies can not only provide the most common real estate mortgage, but also provide enterprises with various flexible loan methods such as commodity pledge loan, accounts receivable mortgage loan, order loan and equity pledge under the premise of ensuring risks. Most small enterprises that are not qualified for bank loans have high credit, but they lack fixed collateral. It is through various flexible mortgage (pledge) loan methods that microfinance companies take the initiative to take on higher loan risks, and control credit risks by supervising the capital flow, so as to' transfusion' enterprises in time and help small and medium-sized enterprises tide over difficulties.