Since 2009, the first small loan company in baoshan city of yunnan province has been established, in baoshan microcredit company has formed a certain market, baoshan city, individual industrial and commercial development faster, but the gap between rich and poor, urban and rural areas is extremely poor areas there are a lot of demand for credit, the other is to have idle funds investors are not perfect investment channels of investment. Especially in small towns under some county in the region, only the traditional state-owned commercial Banks and rural credit cooperatives, extremely lack of competition environment caused the rural financial products and financial services in the region become a blank, and even these formal financial institutions can provide loan services, may also involve the loans to specific target, or give a form to allocate loans, especially relates to financial services, especially with a nature of subsidies, so commercial microfinance can effectively increase the villages and towns, especially the poor rural capital supply. At present, baoshan city has officially opened nine small loan companies, realizing the full coverage of the county, providing credit support for the development of local economy, and the loan term is flexible, effectively supporting the development of rural economy and local industrial and commercial enterprises. By the end of 2012, the total registered capital of baoshan micro-credit company reached 168.1 million yuan, with a total of 413 million yuan of loans issued and 309.95 million yuan of loans recovered, realizing a total of 18.9 million yuan of interest income, 8.47 million yuan of profit and 3.27 million yuan of taxes. The balance of loans at the end of the year was 236.09 million yuan, up 78% from the previous year. Sme loan balance 12.7 million yuan, accounting for 5% of the loan balance; Other loan balance 13.45 million yuan, 6% of the loan balance. The popularization of micro-credit companies is of great significance for solving the problem of poor credit and loan in rural areas and promoting the economic development of local poverty-stricken areas. However, faced with the high risk, high cost and the lack of mortgage guarantee in the credit market, how to raise funds and how to ease the tight capital operation have become the two biggest problems.
Micro-credit companies have always taken "loan-only, non-deposit" as their business model. Although it prevents illegal fund-raising activities such as taking deposits in disguise, it also greatly restricts the capital sources of micro-credit companies themselves. The majority of its major funds come from the equity capital contributed by shareholders. Generally, the size of the company is small, and it is not allowed to enjoy the inter-bank borrowing rate in the money market. Even if it is financed by commercial Banks, it cannot exceed two Banks, and it can only borrow at the interest rate of enterprise loans. This makes it extremely expensive for microfinance firms to raise capital. At present, most of the financing of microfinance companies is based on the revolving loan of funds. However, the demand for agricultural loans is expanding day by day and the demand for funds is increasing, which also leads to many microfinance companies having no money to take after the loan of funds is completed.
Although allowed microfinance company engaged in small credit business, but it is not considered part of the financial system without the qualifications of financial institutions, more can't go into the money market and capital market financing, microfinance company if through to the channel such as Banks, trust financing, financing scale becomes one of the biggest constraints. At present, the amount of bank financing for microfinance companies is only half of the registered capital, while for ordinary industrial and commercial enterprises, the amount of financing can reach four times of the registered capital.
When the above external financing channels are blocked, in order to solve the capital difficulties and expand the credit scale, baoshan micro-credit companies take the way of increasing capital and share as the most important financing channel. Taking baoshan yongchang micro-credit company as an example, due to financial difficulties, the company conducted the financing behavior of increasing capital and share by shareholders at the end of 2012, and shareholders were willing to inject capital into the micro-credit company again in order to achieve a relatively rich return on investment, so as to solve the financing problem.
In addition, baoshan city microfinance companies in the consideration of equity into the village Banks, in this way to solve the financing difficulties. When mfis become village Banks, they will no longer be subject to the "loan-vers-deposit" restrictions, but on the other hand, there are new constraints. In accordance with the banking regulatory commission (CBRC) on the small loan company pilot instruction opinion ", the newly established small loan companies, continue the business more than 3 years, profitability, and nearly two fiscal year non-performing loan ratio less than 2%, loan loss preparation ratios of more than 130%, you can into the conversion of village Banks, but it must be by the banking financial institutions as the main sponsor and controlling shareholders. As a micro-credit company in baoshan city, finding a financial institution as the controlling shareholder will damage the interests of current shareholders, so this financing method is not acceptable to shareholders.
Micro-credit companies mainly serve "agriculture, rural areas and farmers" and some small and medium-sized enterprises. On the one hand, baoshan city is located in the western part of yunnan province, with a large rural population and a great demand for agricultural loans. However, farmers are often unable to provide property that can be used for mortgage or pledge to meet the loan standards of formal financial institutions such as Banks, and the credit rating is not high. Therefore, the initial targets of baoshan micro-credit companies are mostly vulnerable farmers and small and medium-sized industrial and commercial enterprises with small loan amount. And guarantee baoshan microcredit company is now beginning to establish credit systems, information asymmetry, before the loan review cannot obtain perfect customer data, to the customer's credit rating level cannot understand, so when granting loans, can field investigation with the customers, it will no doubt in the review of customer passive add some artificial subjective factors, lead to the results of the survey appeared deviation, thus affect the loan recovery, also increased the loan risk of the company. Microfinance company in baoshan city operation after a period of time, lead to a large amount of non-performing loans and bad debts, then all the baoshan city microfinance companies began to adjust loan object, almost the same time with relatively better economic conditions in the villages and towns low-income farmers and each county small business as a loan object, and must be completed in the form of guarantees and the mortgage loan, make sure the safety of fund collection. To guarantee and mortgage to reduce market risk and credit risk, in this way to reduce the loss rate of loans, improve the liquidity of funds.
Micro-credit companies do not belong to the traditional financial service industry, and the particularity of the industry leads to relatively high taxes and tax rates. Currently, China levies a business tax of 5.6% on micro-credit companies, much higher than the 3.5% on rural credit cooperatives. In addition, it has to pay a series of business surtax, income tax, stamp tax and so on. Taking baoshan huitong company as an example, the company's total revenue in 2011 was 1.6311 million yuan, of which various taxes and fees were 96,900 yuan, accounting for 5.94% of the total revenue. According to statistics, commercial micro-credit companies usually achieve break-even at an annual interest rate of 25%, while micro-credit credit lines are often small and large in liquidity, requiring higher management costs to ensure the safety and efficiency of their own funds. This requires more innovations to reduce costs, increase profits and solve the problem of capital shortage for the company in the way of expanding corporate income. If hui tong company, according to different loan object introduced characteristic of the service: cooperate with sales company, for example, provide planting small mung bean farmers produce underwriting information, convenient for farmers in crops is not yet mature period have been sold to crops, signing a contract one can guarantee the safety of the loans recovery, 2 from sales company selling products of profit sharing. Second, microfinance companies faced with high risk and cost, relatively high loan interest rate has become a necessary guarantee company efficiency and financial safety measures to guarantee baoshan microcredit company for the national policy, market changes, different loan object and guarantee in a different way, using different interest rates of loans to different standards, the baoshan city nine microfinance company in 2012, the lowest loan interest rate is 12%, the highest 15.2%, interest rates between rural credit cooperatives loan interest rate and the folk lending interest rates, although higher than the lending rates of commercial Banks, but far less than the folk lending rates, Basically at a reasonable level. Due to interest rate policy space fully, small loan companies can basically through flexible interest rates set big disadvantage to compensate for the high cost and risk, guarantee baoshan microcredit company in 2012 achieved good operating performance, the tengchong county heng yi microfinance co., LTD., was awarded the "2012 China small financial institutions the most development potential award, baoshan city long Yang district xin into microfinance co., LTD., has won the" 2012 China best product design award "small financial institutions, etc., the number of award-winning baoshan city nine microfinance companies account for winning a quarter of the total in yunnan province.
In recent years, micro-credit companies have gradually developed from the bud and become a new type of rural financial organizations, which effectively supplement the gap of financial services in underdeveloped rural areas and guide private lending to a reasonable and healthy trend. But in the process of development, as a result of its own position is not clear, financing difficulties, regulation and the existence of such problems as incomplete credit system are relatively, can hinder the sustainable development, it also requires the microfinance companies constantly drawing on the successful experience of other credit company, combinative oneself is actual, target customer, at the same time develop other commercially sustainable microfinance projects, to help its own completely solve the financing difficulties, expand the source of the funds. In addition, on the basis of existing commercial Banks' loans to micro-credit companies, the cooperation should also be strengthened, or a formal micro-credit management institution should be set up to gradually introduce non-financial micro-credit companies into the regularization. Finally, the development of microfinance companies is also inseparable from a pro-development policy support, from tax rates, interest rates and other aspects of innovation, to support the survival and development of microfinance companies.