Private Capital Supports the Textile Industry

tly, the CBRC issued the "small loan companyShengze, warehouse receipts in exchange platform
restructuring Provisional Regulations on theto launch businesses pledge. For such loans, Fudan
establishment of village banks", thus, theUniversity, Shanghai Logistics Research Institute ZHU
establishment of more than 3 years and the last 2Dao that cluster corporate finance, corporate credit
consecutive profitable small loan companies may bedefault correlation is often large, fixed homogeneous
transformed into Village Bank.strong closure of the realizable value if they are low
This means that in 2008 began a large scale pilot ofrisks. "Therefore, the traditional mode of financing
the small loan company, is expected in two to threesecured by real property is not suitable for cluster
years, from the credit not only to keep the loanSME financing, Chattel Mortgage, you can better
company (nature of business enterprises),control risk." ZHU Dao said.
"regularization" for financial institutions. It is"The small loan companies are likely to village banks,
understood, is now opened 583 small loan companiesmeans that their future access to financial license."
did not meet the terms for. The small loan companiesRural Development Institute Chinese Academy of
to give a clear channel for conversion is intended toSocial Du Xiaoshan, deputy director, said,
regulate the direction of small loan company."Microfinance is a special product of the context, its
In 2008, small loan companies in the country areas'not only keep credit' of the limit itself exists
are a large number of textile industry cluster. Thesedrawbacks, the South can be a lot of small loan
companies are mostly local formation of large-scalecompanies money lending, face 'famished' case
textile and garment enterprises take the lead. Now,illustrates the point. In a sense, access to finance not
these are expected to "regularization" of privateonly the license State support for rural finance, small
capital but also to remain in the "winter" in the smallloan companies are also developing their own survival
and medium textile enterprises how much hope?and the inevitable. "
Textile Enterprises to Solve PressingWith the "regularization" of hope, the small loan
"The textile industry is difficult not happen overnightcompanies have more momentum in the difficulties
loans, as the industry average profit margin is low,for small and medium textile enterprises, it is
less than 3%." Wuxi Jiangyin a business official toldundoubtedly good news.
reporters that, in addition to a very small number ofTextile Enterprises Not Touch Raw Nerve
listed companies and local support of the backboneAccording to regulations, small loan company's
enterprises, 90% of the textile business loans hard toregistered capital ceiling is 200 million yuan. "Although
. Tension in the capital of these enterprises, the mainsmall loan companies can to some extent alleviate
lending by large enterprises. "The textile industry loanthe problem of a shortage of funds business, but as
interest only a few points, but even in the reala form of private capital concentration, small loan
estate downturn are also a dozen points, the bankscompany funds are limited, can benefit from the
tend to the latter course. Microcredit Company, whichenterprise will not be too wide." Industry experts
is higher interest on loans than banks, but that is apointed out that small loan companies because the
legitimate loan channel, possible solutions to theinvestment enterprises are the strength of the local
urgent needs of enterprises. "influential enterprises, owners of local businesses to
In addition to simplifying lending procedures to reducegrasp the situation very clearly. "For a considerable
the time loans, small loan companies, another benefitpart of the much-needed capital but weak foundation
is that collateral in various forms. Wujiang Silk Groupof enterprises, as a greater risk, small loan company
Co., Ltd. such as the Joint Branch of CITIC Bankapparently does not easily lend them the money.