Hougu Coffee faces the debt crisis and stops private lending

Yin Lei, a reporter from Kunming Daily, reported that "at present, the loan size of enterprises is about 2 billion yuan, and the debt ratio is more than 50%. I think about financing almost 70% of the time." At yesterday's media meeting, Xiong Xiangren, chairman of Dehong Hougu Coffee Co., Ltd. (hereinafter referred to as Hougu Coffee), said.

The main reason that prompted Hougu Coffee to hold a media meeting was not the loan of up to 2 billion yuan, but the pressure brought by the "U-turn fund". Due to the short loan cycle of banks, Hougu Coffee has a loan maturity of 1-200 million yuan almost every month. If the loan is not repaid on time, there may be a record of non-performing loans, which will deal a fatal blow to the development of enterprises. In desperation, Hougu Coffee, like most enterprises, uses private loans to "turn around" when it is in urgent need of money.

Because of this, although Hougu Coffee has developed well in recent years, with sales income of 1.1 billion yuan in 2013 and 1.5 billion yuan in 2014, due to the short bank loan cycle, enterprises have to pay high interest for turning around funds. Xiong Xiangren revealed that in the last two or three years, the cost of borrowing money to turn around to repay the loan was more than 100 million yuan.

In fact, Hougu Coffee is not the only one subject to "U-turn funds". Pan Song, general manager of Kunming Xinrong Economic and Trade Co., Ltd., feels the same way: "due to the short loan cycle, in order to ensure the credit history of the enterprise, we often have to sell at a low price, but this result will only aggravate the financial difficulties of the enterprise." Zhang Jianshu, general manager of Yunnan Kecheng financing guarantee Co., Ltd., also said that the liquidity of more than 200 enterprises guaranteed by the company is mostly supported by financial institutions, and when the enterprise's own funds cannot be repaid on schedule, in order to maintain its reputation, many enterprises have to rely on private loans to "turn around" to maintain.

In Xiong Xiangren's view, some of the current financial policies can no longer meet the needs of current economic development, and only by adjusting in time can the real economy be better continued, and the core of the adjustment is to give policy support to enterprise loans, such as "rolling over", "borrowing new to repay the old" and "extending the term of working capital loans". "We have decided not to raise funds to make a'U-turn 'and will consult with financial institutions in the future to give us policies such as' borrowing the new to return the old'." Xiong Xiangren said.