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Original title: Song Hua: 55% of SMEs had serious financing problems last year, with more to come after the epidemic. Source: Phoenix Finance
In 2020, the new corona pneumonia epidemic spread across the globe and the global economy stopped. This is an unprecedented global crisis: The world economy faces a double impact of demand and supply, and it is difficult for any economy to be alone. At this critical moment, Phoenix Network Finance, Shanghai Jiaotong University Advanced School of Finance and Peking University National Development Institute held the event “Phoenix Network Super Finance Week” with the theme “Global Economics and Policy Choice “, inviting political, business and business circles The guests analyzed the opportunities and challenges facing the global economy through online forms.
Under tremendous pressure, what difficulties do national SMEs face and what are the reasons? Song Hua, vice dean of Renmin University of China Business School, said on May 10 when he connected with Phoenix Finance that the problems facing small and medium-sized enterprises are very serious, especially in terms of funds, and the problem it will be more serious after the outbreak.
According to the survey data, in 2019, 62% of SMEs suffered late payments, and approximately 40% of SMEs have exceeded their past due amounts, which has greatly deteriorated the financing status of SMEs. Worse still are the overpayments due. In 2019, the number of SMEs suffering overpayments fell to 55%, compared to 47% in previous years. Generally speaking, if the overdue payment exceeds 2% of annual turnover, this company will definitely have serious liquidity problems.
Song Hua specifically spoke about the accounting period for small and medium-sized enterprises and said: “Especially in the epidemic situation of the current era, I think we should accelerate the construction of the system and restrict delay in payment through legislation. In many countries Western developed countries, it is considered a fair transaction. Part of the law is that there are strict restrictions on late payment to small and medium-sized businesses. For example, the European Union has regulations that set the maximum payment to all small and medium-sized companies cannot exceed three months, which is 90 days. No more than 30 days, otherwise you will be fined. So I think a series of systems of this type can really solve small, medium and micro financing problems, expensive financing and slow financing. “
Song Hua also spoke about the bank’s support for small and micro businesses: “In recent years, our country has introduced many measures, including promoting loans to small and medium-sized businesses and improving tolerance for bad debt. We have done many policies. But our research, especially for this time The epidemic situation, the extension and the reduction of standards have been done, but in reality the situation is not particularly optimistic. “
He believes there are two main reasons for this situation: First, a commercial bank is a financial institution that talks about its operation. If you are allowed to increase tolerance for bad debt, it is not really very likely; Secondly, the development of electronic invoices is very important. It is important to note that because there are no standardized warehouse receipts, no standardized printing slips, or other standardized electronic stamps, etc., many problems in the industry chain do not they cannot be resolved or implemented effectively.
Song Hua said: “We need to precisely find the crux of the problem and solve the problem. Simply making some policy appeals cannot be said to be useless, but it is still a bit complicated to solve the real problems of small, medium and micro-enterprises.” .
The following is the voice record:
Speaker: Song Hua, Vice Dean of the Business School, Renmin University of China
Moderator: Discussion on the subject of the SME war epidemic. Mr. Sun Jinyun, Vice Dean of the School of Business, Renmin University of China, Professor, Department of Business Administration, School of Management, Fudan University, Young Entrepreneur, Fudan University, Director of the Center for Education Research and Development , Mr. Sun Jinyun, President of Xinchang Cultural Tourism China Co., Ltd. Mr. Wu Quandong. The conversation of the three guests was chaired by me. Around the epidemic, the vitality and the radical change of this small and medium company, the professors made an opening speech in 11 and 12 minutes, and then we have a little time to interact. Dean Song Hua, please.
Song Hua: Ok, thanks. Right now I heard the first two experts talk about it, including the host also just talking about it. Regarding this challenge facing small and medium-sized enterprises, I strongly agree with the view that it is not just about this outbreak, but has further exacerbated the obstacles to the development of small and medium-sized enterprises, especially the financing issue just mentioned.
I would like to speak on a topic first, the difficulty of financing SMEs, including the (difficulty) caused by the epidemic that is often mentioned now. Before this, he has shown a very serious condition. Then I will talk about the most basic data. Everyone knows that Coface basically investigates the state of the small and medium-sized business system in China every year. By 2019, the institutional status of SMEs will be more serious than in previous historical periods. How serious is it? 62% of our SMEs suffered payment delays. And around 40% of the past due amount of SMEs has exceeded the previous years, which greatly deteriorated the financing status of our SMEs.
And what’s worse is the overdue payment. In general, we all know that there is a basic concept in the financial field. What is called late payment is 180 days. Originally, I promised to give you money after three months. If I don’t give it after three months, it will probably exceed 180 days. After 2% of your annual profit, generally speaking, if the overdue payment exceeds 2% of annual turnover, this company will definitely have serious liquidity problems. So what happened last year probably increased to 55%, and only 47% in previous years, these large and past due SMEs accounted for more than half. This leads to a problem: the problems facing our small and medium-sized companies are very serious, especially in terms of financing, they have encountered great obstacles. Of course, the problems caused by this epidemic are more serious.
We just surveyed some SMEs a while back, especially financial institutions. This is because the government has repeatedly introduced many measures in recent years, including encouraging loans to small and medium-sized businesses, while also proposing that financial institutions increase tolerance for bad debt and have formulated many policies. But our research, especially for this epidemic, has made some extensions and lowered the standard, but in fact the research is not particularly optimistic.
Where is the reason The reasons are mainly in several aspects.
First, a commercial bank is a financial institution that talks about operations. If you let it increase your tolerance for bad debt, it’s actually unlikely. Why are many commercial banks now responsible for life, who will assume this responsibility? You also have to obey the situation at the predetermined rate, which is one point.
In fact, what can really solve the problem is not to issue a series of policies to appeal, but to implement policies with precision. Where does this precision work? I think the main problem is some aspects. The first aspect is the entire commercial civilization and commercial construction, institutionalization is very important. One of the most serious problems with the data I talked about a moment ago is that many of our major companies are short on money today. We also have the A-share market, including the GEM, in fact, many companies, especially in 2019, accounts payable are much larger than accounts receivable, and are increasingly delayed. This is really great damage for small and medium-sized companies, which is what we have to solve now. In particular, how can our state enterprises cooperate in a timely manner to determine power? Due to the problems we have now, the SME problem is not just a long-term problem. What is more serious is that there is no way to confirm the financial products of financial institutions without confirmation of power after the goods are received. This is the problem that we must solve today.
Secondly, in the current reality process, the development of our electronic invoices is very important. Because there are no standardized warehouse receipts, no standardized printing slips, no standardized electronic seals, etc., many problems in the industry chain cannot be effectively solved or implemented. This is also a very important aspect. Of course, most importantly, especially in the current epidemic situation, I think we should accelerate the construction of the system, and we should legislate to limit the delay in payment. In many western developed countries, as part of the Fair Trade Law, there are strict restrictions that do not allow late payments to SMEs.
For example, the European Union has regulations that establish that the maximum payment to all SMEs cannot exceed three months, which is 90 days. If it is a public procurement, it cannot exceed 30 days, otherwise you will be fined. Therefore, I believe that a series of systems of this type can really solve the problems of small, medium and micro financing, expensive financing and slow financing. Therefore, we need to precisely find the crux of the problem and solve it. The simple formulation of some policy appeals cannot be said to be futile, but it is still somewhat difficult to solve the practical problems of small, medium and micro-enterprises.
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