Research On The Development Of Small Loan Companies In Hefei

Hefei microfinance company pilot began development in 2008,and the number reached 93 in 2012,providing loan services for the three rural and small micro enterprises without enough financial services,and promoting the economic development of Hefei.However,with the economic downturn,the rapid development of financial policy restrictions and Internet financial platforms,Hefei microfinance companies into the plight of the development,business risk is gradually increasing,business management become.difficult increasingly.The number of small loan companies began to decline in 2013,and there is only 68 in 2016,While the scale of business growth is also slowing.Under the severe situation of the deterioration of business conditions,Hefei small loan companies actively reflect,explore new development path,and achieved some success.Firstly,expand the scope of business operations,in addition to micro credit business,a number of Hefei small loan companies have also launched a series of new businesses,including trust agents,insurance agents,bills discounting and asset transfer.Secondly,expand the business area,a number of Hefei small loan companies to break the geographical restrictions on business operations,began to carry out the business in the province.Thirdly,diversify the customer loans channels,Hefei small loan companies broke through a single model of independent development of customers,and actively cooperate with the third parties,including channels,banks and shopping malls.Fourthly,diversify the loan business security,Hefei microfinance companies in addition to the guarantor,Guarantee Corporation,real estate and other security,but also the development of accounts receivable,bills,POS sales and other new security.Fifthly,inovate the channel of funding source,under the policy of deposit restrictions,Hefei small loan companies through asset securitization,the issuance of private debt,large shareholder oriented loan and so on,inject a lot of money into the company.Hefei small loan companies win a broad space for development through innovation and exploration,and injected vitality to local economic development in Hefei.However,there are still a lot of problems to be solved in the development of small loan companies.in Hefei.Firstly,lack of credit business development,Hefei small loan company credit loan size is very low,the support for the "three rural" and poor population is still far from enough,failed to achieve the original intention of the establishment of small loan companies.Secondly,there exists customer positioning deviation,Hefei small loan companies in the choice of the object of the loan,the more inclined to small businesses with collateral,the small business loans in the largest number of borrowers and the highest amount of risk,easily lead to the concentration of small loan company risk.Thirdly,operating costs increase,with the increase of litigation costs in Hefei small loan company’s litigation costs increased year by year,and the camp changed to increase the pilot implementation in essence has not been able to effectively reduce taxes.Fourthly,the risk regulation after loan is not in place,regulation is not enough in the system,personnel and collateral and other aspects,there exists huge risk after the company loan.Fifthly,take back overdue loans is difficult,mandatory loan recovery has a great impact on the normal operation of the borrower,Measures difficult to implement,but it will cause delays in repayment day without mandatory loan recovery.Sixthly,the internal management system of company is not perfect,there is six small loan companies were ordered to stop in 2015,ten small loan companies were canceled the pilot qualifications,without exception,there is a big problem in corporate governance.Based on the above analysis,this paper analyzes the case of Zuoli Kechuang Micro-finance Company Limited and summarizes the inspiration of the case,combined with the specific situation of the development of small loan companies in Hefei,the paper puts forward some countermeasures and suggestions.Firstly,innovate business and expand the market,make innovation throughout the company’s development.Secondly,return to small,scattered customer positioning,adhere to spread the risk from small loans.Thirdly,strengthen the risk management after the loan,reduce the occurrence of bad loans.Fourthly,improve the company management system to achieve standardized development.Fifthly,strengthen mutual exchange,achieve mutual development between small loan companies.