Safeguarding SMEs from Breaking Down

Since June of this year, the news that “the business environment is bad: the new round of small and medium-sized enterprises will be closed in the face of terror”, “the survival conditions of the Pearl River Delta, Wenzhou’s small and medium-sized enterprises” and “the crisis seems to be even more serious than in 2008” have been affected. People heart. The development of SMEs has its own internal and external causes. In addition to the problems existing in the company itself, there are also external policy environments, development environment and other factors, financing difficulties, tax burden, market access threshold and so on. It is undeniable that these external problems do exist. "External causes are conditions, and internal causes are the basis." However, in the past half a year, security companies have not been full of orders, funds have been slow to return, and urgently needed cash flow. Financing for financial institutions has been rejected because of the small size of enterprises. Less orders and financing difficulties are currently faced by enterprises. One of the difficulties.

How the SMEs in the Security Industry Seek Financing for Breakthroughs Face Funding Difficulties SMEs are the backbone of the Chinese economy, but financing difficulties have always been a problem that restricts their development. Although the state has introduced a number of policies and measures to support the development of SMEs, it has played a positive role to some extent. However, in general, the problems and difficulties facing SMEs have not been fundamentally resolved.

From the macroeconomic level, the rise in energy and raw material prices, the increase in labor costs, the increase in environmental protection costs, the appreciation of the renminbi, the reduction in export tax rebates, the increase in interest rates by banks, and the fall in external demand caused by the global financial crisis all contribute to the external environment of the company. Unfavorable changes. At the same time, SMEs have low anti-risk capabilities, financial irregularities, lack of effective collateral for guarantees, and banks are unable to issue loans to SMEs based on a credit evaluation system.

At present, most of the problems encountered by SMEs in the security industry during the process of high-speed growth are still capital chain issues and financial difficulties. Specifically for security companies, a medium-sized electronic technology company mainly produces security products such as monitors and cameras. During the financial crisis, the demand for domestic and commercial security products in Europe and the United States and other countries increased significantly, and the company’s exports did not decline. Faced with a large number of orders, he dared not take orders. Because the company's funding gap is only 10 million yuan, but the company's plant is rented, there is no collateral, despite 10 years of operating history, credit records are good, the bank still can not lend.

It is reported that many small and medium-sized security enterprises like this have shrunk by nearly 50% because the number of orders for processing European and American market products has been squeezed. The profit margins have been squeezed, and some small and medium-sized enterprises that originally could only earn meager profits have been struggling. A survey shows that about 50% of SMEs have cash flow crisis. Many SMEs have proposed to solve the financing difficulties of SMEs and hope that commercial banks can innovate products and services.

SMEs' financing difficulties are due to external factors: from the perspective of banks, the three difficulties make most security SMEs climb. 1. In order to maximize risk aversion, banks tend to prefer conservative market strategies to exclude ordinary SMEs. 2. All local banks implement unified national standards in the loan business. They consider insufficient regional differences, industry differences, field differences, project differences, lack of necessary flexibility and pragmatism, and generally increase the financing difficulty of security and small and medium-sized enterprises. . Third, credit privileges have been excessively received, and municipal and county banks have failed to lend. As a result, credit approvals have been severely misaligned with corporate funding requirements in terms of time and space. The complicated loan approval process and lengthy approval cycle are both “short, urgent, "Fast" and other characteristics of the security industry's SME funding needs conflict.

Internal Causes of Financing Difficulties for SMEs: Disposing of chaos From the perspective of enterprises, the overall level of development of SMEs has brought four chaos. First, the financial management system is not perfect. Many security and small and medium-sized enterprises cannot provide convincing financial information to banking institutions. It is difficult for banks to make accurate loan risk judgments. Second, the company’s ability to withstand economic risks is low, coupled with the low creditworthiness of a few SMEs, which increases the difficulty of financing. Third, corporate production funds are excessively dependent on banks for liquidity risks. Fourth, because the current SME financing mainly relies on mortgage loans, the lack of assets as collateral brings with it the difficulty of implementing the second repayment source, which determines the limitations of its loan size.

In order to provide a more favorable financing environment for the development of SMEs in various industries, it is necessary to thoroughly crack down on the "three barriers" and "four difficulties" existing between banks and enterprises. Governments at all levels should work hard to promote cooperation between banks and enterprises. Financial departments at all levels must actively adjust credit policies, issue corresponding targeted business measures, actively improve financial services to SMEs, and adjust and optimize the structure of credit assets. The small and medium-sized enterprises in the security industry must also rethink their own deficiencies, standardize the financial system, attach importance to project feasibility studies, improve anti-risk capabilities, and further improve the sense of integrity.

SMEs in the security industry should seize the opportunity to save themselves. Along with the continuous introduction of the country's supporting policies for SMEs, the development of SMEs is once again facing new opportunities. SMEs in the security industry must seize this opportunity to strive for internal strength and achieve self-salvation.

Security SMEs should strive to improve their own operating conditions, improve the management level of enterprises, streamline institutions, and further reduce the cost of enterprise management. Improve the financial system and clarify the financial status of the company. It enables investors to understand the business operation and financial status of the company, and thus lay a good foundation for raising funds and expanding production scale.

In the long run, technological innovation of enterprises is the foundation for the survival of enterprises, the driving force for development, and the guarantee of success. Today, the ability to innovate has become the country’s core competitiveness and is also the key to the survival and development of the company. It is the first step for the company to achieve leapfrog development. Security and SMEs should strive to do a good job in technological innovation, improve the competitiveness of products and reduce production costs. In the past, security products merely copied and imitated to carry out simple processing. Such enterprises could not grow and survive for a long time. Safeguarding small and medium-sized enterprises from the labor-intensive to the technology-intensive, it is necessary to establish their own core advantages and own their own core technologies. This kind of enterprise can get better support from the country and the bank.