The business of credit companies is actually a kind of private lending, and customers are generally small and micro enterprises that are difficult to obtain bank loans and some individuals who need short-term loans. Generally speaking, such customers have higher credit standing, less net assets, weaker cash flow and profitability, and lack of full guarantee. Therefore, the interest rate of small loan companies is relatively high, often reaching the upper limit (four times the benchmark interest rate), and with some expenses such as investigation fees and handling fees, the comprehensive cost may reach 30% or even higher.
In 2008, the China Banking Regulatory Commission issued the Guiding Opinions on Pilot Companies, and some developed areas of private economy such as Guangdong and Fujian also formulated their own management measures for small loan companies. In these documents, the maximum loan amount for a single borrower is limited to 5% of the net capital of a small loan company, and some even set an upper limit (for example, Guangdong stipulates that it shall not exceed 5 million).
In terms of capital efficiency, as far as I know, the overall rate of return of the small loan industry is acceptable, and some companies can even achieve an increase of more than 100%. However, there are many illegal operations (illegal fund-raising, etc.). ) In the small loan industry, and in the tight macroeconomic environment, the default rate will also rise, and the overall risk is higher.
The business model of each company is similar, which is to judge the repayment ability by looking at the current assets certificate of credit investigation. However, their requirements for customer credit information are not as strict as those of banks, and they can only find small loan companies that ordinary small and micro enterprises can't do. Small loan companies will generally conduct field visits to see their actual operation. Their income is mainly interest, and some of them have the shadow of large local enterprises, and they can also get financial support from banks.
Second, why should the state support companies?
Regular loan companies are legal. You are overdue, so the company is in charge. Anyway, I suggest you return it first.
Third, why should the state support companies?
Revitalize the capital demand of potential small and medium-sized enterprises and individual industrial and commercial households, enlarge the economic aggregate and develop a number of high-quality small and medium-sized enterprises.
Fourth, why should the state support companies?
Revitalize the capital demand of potential small and medium-sized enterprises and individual industrial and commercial households, enlarge the economic aggregate and develop a number of high-quality small and medium-sized enterprises.