How should LED lighting companies appease the “fund chain panic”?

In recent years, the growth rate of the lighting and lighting market has been slowing down. Based on the lag of the market reaction, the goods can not be sold, the merchants cannot withdraw funds, the goods cannot be collected by the manufacturers, and the supplier’s money cannot be settled. Difficult to escape the dilemma of capital turnover. Recently, more and more banks have reported bad debts, and many financial loan products for enterprises, logistics, and stores have begun to shrink.

In the downward trend of economic downturn, market share has shrunk, corporate profits have shrunk, debt has increased, repayment capacity has decreased, industrial capital chain has been tightened, and dangerous signals in cash pools have been issued frequently. How can corporate panic be appeased?

Need a new "guarantee mode" to suspend industry integrity crisis

Lack of money is the current status quo of enterprises. The expenses such as rent and labor have not yet been settled. It is only a dream to be bigger and stronger, and what is urgent is how to survive.

In the past few years, Mulinsen opened the ring in the hardware channel and quickly captured the Buddha's photo in a short period of time in a low-cost manner. This move not only allowed Mulinsen to quickly occupy a large amount of capital flow in the industry, but also in the case of a sluggish industry. It is to maintain its own survival, a critical strike for the lighting company that is the main hardware channel, the channel is king, domineering side leakage.

Drawing on Mulinsen's counter-attack case, manufacturers need to obtain cash flow from the inventory to maintain their livelihood. However, after all kinds of "running roads" incidents frequently, many merchants have a lingering fear of the traditional "first-for-money", so they would rather not take the risk of backlogging.

At this point, the industry needs to use a new "guarantee model" to suspend the industry's credibility crisis, that is, intervene in the third party among manufacturers and merchants, and use the credibility of the third party as a guarantee for the month to organize high-quality buyers and sellers to divert inventory. Clean up the "bad assets" of the industry in exchange for the basic operating expenses of the company.

Standardize the loan process and inject capital into an active market

Another way to introduce funds is to make loans. At present, the bank's cautious attitude toward lighting companies' loans is like an arterial blockage. If it is not rescued in time, it may lead to a total shackle.

The survey found that the root cause of bad debts in banks is not due to industrial crisis, but because many enterprises that do not meet the loan conditions have obtained high loans through the distorted loan process and have no ability to repay. Some business associations charge low-cost handling fees, recommend letters to companies with loan needs, and then deliver them to the guarantee company to amplify the leverage and eventually obtain bank loans. In this operation, the guarantee company pays 13% and the bank pays 7%. In the case that the market is not good, the enterprises after the loan did not receive the corresponding returns as expected, coupled with the double high interest rates, which made the enterprises that had financial problems worse.

The water is exhausted and the scale of the industry has caused the enterprises to gradually emerge from the water. While assisting these unscrupulous enterprises to order out, government agencies should regulate the loan process and allow capital to continue to be injected into the active market.

Market self-regulation, firewood ring transmission

With the self-regulation of the market, the industry is rapidly carrying out the survival of the fittest, and the market share will gradually return to a reasonable distribution. Regardless of whether the enterprise relies on unblocking inventory to maintain its livelihood, or whether it is operated through loans and financing, its essence is to revitalize the stalemate capital chain.

In the past winter, each family burned wood in their own stove to heat, and in the current low firewood, through the firewood ring, the circulation of a round, the footsteps of spring is quiet. In the capital era, what is most afraid is not the loss, but the break of the flow of funds.

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