Credit Risk Of Wenzhou Shoe Manufacturers

From the "leader" of the development of private economy in the early days of reform and opening up to the "initiator" of "stir fried" houses, "stir fried" mines and "stir fried" garlic, and then to the "runners" of the debt crisis of enterprises, the Wenzhou businessmen's debt crisis appeared in the private enterprises since last year.

Credit failure

Since last year, there were more than 140 incidents of shutting down and shutting down enterprises caused by the Wenzhou boss's "run on the road" or suicide. The corporate debt crisis has become the haze of "the birthplace of China's private economy", and it has dampened the credibility of Wen Shang. The distrust between the three companies, banks and intermediaries is permeated.

The word "credit" has left profound lessons for Wen merchants in two words.

In August 8, 1987, in Hangzhou's Wulin gate square, more than 5000 pairs of inferior Wenzhou shoes were destroyed by a big fire, which set a wake-up call for Wen merchants and began to explore the building of commercial integrity.

After more than 20 years of hard work, Wen business credit has been rising.

A Wenzhou businessman told reporters that when Wen business reached its peak, only one Wenzhou identity card could get millions of yuan or even tens of thousands of yuan in bank loans.

In an interview with reporters, Zhang Changkang, deputy general manager of Wenzhou Xin Ying shoes materials Co., Ltd., said: "now, people in Wenzhou have been destroyed in the early days since the beginning of reform and opening up." in the past, if any company was worth several million yuan, entrepreneurs would lend each other. In the past, a phone call used to send you money to the card. Now who would dare? Ah, and the credit conditions of banks and Guarantee corporation are becoming more and more severe. Even once active private lending is on the verge of stagnation.

In the management of foreign trade leather shoes business.

This statement of Wenzhou businessmen seems to have been corroborated by the Guangzhou businessmen who are thousands of miles away.

Guo Huazhong, general manager of Guangdong Rui Zhou Technology Co. Ltd., has been dealing with Wen Shang since the 90s of last century. He believes that when compared with the words at that time, Wen Shang was not credulous.

He told reporters, for example, that the company had sold several machine tools to a well-known shoemaking enterprise in Wenzhou. When it was agreed to pay, the other party was always in arrears with various reasons. 60 thousand yuan was owed for more than 8 months. Finally, it was collected by means of the locking machine. "Now we ask the Wenzhou enterprises to cooperate with cash pactions, otherwise the business is done in white."

According to the analysis of relevant professionals, the lack of internal capital flow has led to debt crisis. The demand for cash settlement by external trade partners has created a "internal and external" situation for Wenzhou enterprises, which has resulted in more serious financial pressure. Enterprises' active and passive breach of contract has increased.

Excessive expansion of acquaintance economy

Since 1980s, businessmen in Wenzhou have flocked to the whole country. Today, there are 270 thousands of warm business enterprises everywhere in the world.

At the beginning of Wenzhou's business, almost all private lending was built on the basis of "acquaintance society" and played a role of "financial main channel" in a certain period.

In Wenzhou, where everyone participates in private lending, after the "run off tide" of enterprises, the people