The rising cost of the cabinet industry leads to the difficulty of financing

In recent years, the overall situation of the overall cabinet market has been unsatisfactory, and many small and medium-sized cabinet companies have frequently encountered various problems in their business development. Many small and medium-sized cabinet companies are worried about raising money. The lack of funds has become a big problem for most small and medium-sized cabinet companies.

Cabinet companies have more financing difficulties

As we all know, the entry threshold of the cabinet industry is not high, so there are a large number of cabinet companies in China, and the degree of development is also different. There are start-up periods, growth periods and maturity stages, but no matter which stage of development, there is financing difficulties. phenomenon. From the perspective of financing channels, although many fund-raising companies have multi-channel financing, bank loans and self-raised funds are the main sources of funding for most cabinet companies. Loans are mainly short-term loans, and private lending and internal fund-raising also account for a proportion. The loan situation is not very optimistic. The financing has brought a lot of cost pressure to many small and medium-sized cabinet companies. According to surveys by relevant departments, more than half of the cabinet companies said that the actual bank loan interest rate is obviously high, and most cabinet companies believe that private lending Interest rates are hard to bear.

Cost increase is the first cause

Why is it so difficult to finance small and medium-sized cabinets? According to analysis, rising costs are the primary cause of financial constraints. At present, the scale of production of cabinet enterprises is constantly expanding, and the demand for funds is increasing. At the same time, the scale of loans of financial institutions is constantly shrinking, and the contradiction between supply and demand of funds is more prominent. The high threshold for loans limits the financing of small and medium-sized cabinet companies. Compared with large enterprises, the small-scale enterprises have less assets that can be mortgaged, the stability of production and operation is relatively poor, and the ability to resist risks is relatively weak. Some financial institutions have “significantly small and light” and “poverty and wealth” to a certain extent. "The tendency to "respect public and private" has a higher threshold for loans, making SMEs in a disadvantaged position in financing. In addition, the single lending products and the complicated and complicated financing process make small and medium-sized cabinet enterprises in a disadvantaged position in financing.

Cabinet industry calls for policy support

The questionnaire shows that in improving the financing environment of small and medium-sized cabinet enterprises, most cabinet companies first think that the government plays a decisive role. Many enterprises hope that the government will establish and improve a unified enterprise credit information system. Among them, the company believes that the most urgent task of the current government is to accelerate the development of capital markets, and secondly to increase support for guarantee institutions. As far as the current situation is concerned, the key to solving the problem of financing difficulties for small and medium-sized cabinet companies lies in the enterprise itself. Small and medium-sized cabinet enterprises should pay attention to the introduction of professional talents, establish corporate reputation, continuously enhance innovation capabilities, and enhance corporate strength and competitiveness. On the other hand, the government should further increase efforts to support small and medium-sized enterprises, actively expand the financing platform for small and medium-sized enterprises, and gradually establish a multi-level capital market system for small and medium-sized cabinet enterprises. At the same time, all kinds of banking financial institutions should, in conjunction with the actual situation of small and medium-sized enterprises, actively introduce measures to appropriately reduce the loan threshold for small and medium-sized enterprises and create a win-win situation.