For those online lending companies, the predecessor of the company itself is a private lending institution, so the amount of funds of online lending companies is not large. In this case, some online lending companies may act as so-called loan intermediaries. When the online lending institutions have problems, the lenders of the online lending institutions can't pay the principal normally, and many users of online lending will also experience the situation in loans overdue.
The reason for 1 is the operational strength of the online loan company itself.
Because most online lending companies are not strong in operation, many online lending companies will also enlarge their own funds by 1~ 10 times. When there is a problem with their cash flow, online loan companies are naturally prone to dating. Especially for those small and medium-sized online lending institutions, the amount of funds of such online lending institutions can only maintain the cash flow situation for 7 to 30 days, so these online lending companies have great operational risks.
The second reason is the debtor's overdue behavior.
Because the debtors of online lending companies are generally secondary users of personal credit information, the personal credit information of relevant users has its own problems. If it is not necessary, many people will not apply for online loan products at all. Debtors of some online loan products need to return credit cards and online loan products at the same time, so many online loan products are overdue, which further leads to a very high non-performing loan ratio of online loan companies.
The third reason is the business strategy of the online loan company itself.
For online lending companies, few online lending companies choose long-term development routes. After the online loan company obtains the corresponding operation qualification, the online loan company will enlarge its capital through frequent lending. Under this business strategy, if the bad debt rate of online lending companies is high, online lending companies will not only be difficult to maintain basic profits, but will even be in a state of loss for a long time, so online lending companies will often cut off loans.