You can name it Zhongcheng Small Loan or Wangtai Small Loan
1. Risks caused by role positioning. Loan companies are non-financial institutions and "do financial things but do not enjoy financial rights." The core of microfinance is microfinance. In fact, it is not just microfinance, including not only credit, but also savings, membership fees, insurance, and various other All these other services together can be called microfinance.
2. Small loan companies can only carry out loan business and cannot absorb deposits. They must solve financing bottlenecks and prevent the risk of illegal financing.
The main sources of funds for small loan companies are capital paid by shareholders, donated funds, and funds from no more than two banking financial institutions. Within the scope stipulated by laws and regulations, the balance of funds received by a small loan company from banking financial institutions shall not exceed 50% of its net capital. The fundamental reason why small loan companies are short of funds is that they have not truly entered the financial market and are not qualified to enter the lending market and bill market.
3. The most important operating market risk of small loan companies.
Small and medium-sized enterprises face difficulties in starting a business, financing, and development. Nowadays, banks attach great importance to loans to small and medium-sized enterprises. If banks really start this business, high-quality small and medium-sized enterprise customers will concentrate in banks, and small loan companies will only have to deal with low-quality small and medium-sized enterprises. The service targets of microfinance belong to the lowest-end customer group in the financial market. The traditional banking industry uses mortgage guarantees as the basic means to prevent and control risks, and this is a condition that low-end customers are difficult to meet.