The difference between factoring and most essential small loans: two different concepts and scope of business.
Factoring company is the seller of the receivables generated by the transferee to finance its funding, an integrated financial services fashion buyer credit rating, sales account management, credit risk guarantees, debt collection and a series of services. Small loan company is a natural person, corporate and other social organizations to set up investment, no deposits from the public, using its own funds to run micro-lending business.
Factoring (Factoring) collection, also known as factoring, the seller will it present or future receivables on goods entered into by the buyer and sales / service contracts arising from the transfer to the factoring business (providing factoring services financial institutions ) to finance the factoring business to its funding, an integrated financial services way buyer credit rating, sales account management, credit risk guarantees, debt collection and a series of services. It is a commercial trade to the collection, settlement money on credit a third party commissioned by the seller in order to strengthen the management of accounts receivable, enhance mobility and the use of (FCI) accounts receivable management practices.
China's economy is in a growth phase shifting, restructuring and growing pains early stimulus digestion period - "3" is superimposed on the current stage characteristics of China's economy. It is subject to Chinese economic impact "three" overlapping factors, the domestic development of SMEs face challenges, financing, financing more expensive and other issues outstanding.
First, commercial bank loans and factoring comparison
Bank loans are the vast majority of operators can think of financing, but for SMEs, but it is not an easy thing to bank loans. Bank lending requirements for the qualification of high, long approval cycle, and limit the use of funds. Even low financing costs, but for SMEs it is difficult.
Compared with bank loans, commercial factoring has a clear advantage in the qualification requirements and approval cycle. Business factoring its flexible, it is possible for business owners of accounts receivable professional assessment and then determine whether to give money to the enterprise. This is a step to ensure sound risk control, but also can shorten the approval cycle, to solve the urgent needs of business owners. This is precisely matched to the SME multi accounts receivable, fixed assets, and the light of reality, SMEs can effectively meet the urgent need for short-term liquidity, positive efforts and continue to explore in terms of inclusive finance, more It has been recognized.
Second, small business loans and factoring contrast
Micro-credit program is simple, simple procedures, can ease the short-term financing difficulties of SMEs and individual businesses to make up for deficiencies between bank loans and private lending to some extent. But for the small number of loan amount is more than 1,000 yuan, 20 yuan, the number of relatively small amounts. At the same time because of the high cost of financing small loans, so for many SMEs to bear more interest, repayment pressure.
In contrast, the low cost of financing the business of factoring, has a more standardized processes, can effectively alleviate the pressure of repayment of SMEs. In addition, business factoring have a greater advantage in the financing amount, compared with the small number of loans to small amount of financing, financing amount of the commercial factoring are generally much larger than the small loans. Microfinance can only solve a small number of financing issues, but when it comes to the larger number, you can not play its procedures simple, easy formalities advantage. At this point, the business of factoring accounts receivable-based, for business as soon as possible to obtain a more adequate cash flow. Mr. Hu Wei After analyzing Chinese companies stressed market environment, SMEs account for over ninety percent of the number of enterprises, business factoring as one of the important ways of financing for SMEs, China will become the world's largest commercial factoring market. Business Factoring is also hoping the industry experienced its own strength and factoring business, customer success, industry achievement, self-achievement.
Third, secured financing and factoring business of contrast
Secured financing guarantee business is one of the most important species, a credit intermediary acts with the development of commercial credit, financial credit and guarantees required target financing needs arising. Security industry is a bridge banks and SMEs, but the uncertain economic environment, so that the industry suffered from the winter; and some enterprises are not standardized operation is a drag on the entire industry, and then drag the entire industry is facing a credit guarantee crisis.
In addition, business owners want to find the right secured financing, nor is it an easy thing, in fact, the extent of the operation is also more complicated. Secured financing industry and a significant decline, suffering from the winter compared to the factoring business is showing a vigorous development trend, according to the International FCI (FCI) statistics, in 2012 China's international and domestic factoring business amounted to 343.8 billion euros, the figure reached 378.128 billion euros in 2013. Business factoring financing guarantee is better than in the qualification requirements and easy extent, on the future development of the industry is the main form of financing.
Fourth, major products and business factoring comparison
Business factoring and bank loans, small loans and guarantees and other financing products in contrast, presents three characteristics:
First, greater flexibility in the approval cycle, use of funds;
Second, the degree of difficulty in the more convenient, the qualification requirements;
Third, the cost of financing, financing more efficient. More flexible, more convenient, more efficient three characteristics, but also to the business of factoring is becoming the first choice to solve the financing difficulties of small business owners.
Business factoring apply to all types of enterprises, widely infiltrated into all aspects of business operations, financial operations, etc., and letters of credit, credit insurance, together with a trade creditor protection Troika.
Transfer: https://zhuanlan.zhihu.com/p/38241950