SMEs are holding on, and bank support is moving quickly.
Seven days after Jia Guolong, the chairman of Xibei Catering Group, publicly "cried for poverty", 12 million working capital loans from Shanghai Pudong Development Bank were credited to Xibei Catering Group.
Jia Guolong said that in recent days, the government and relevant departments have recommended a number of financial institutions, and many banks have taken the initiative to find them. Xibei's predicament is a microcosm of the challenges faced by the catering industry, and the help Xibei has received is also a reflection of the recent "warm enterprise action" from local governments to banks. At present, a number of banks have introduced measures to help enterprises greatly affected by the epidemic, including loan extension, reduction of penalty interest, renewal of loans, improvement of business approval efficiency and other support measures.
Many catering enterprises have also launched self-help actions such as developing online business. However, some brokers estimate that the catering industry will face a wave of small business closures and mergers and acquisitions in the future, and the industry will be hit hard or exceed SARS.
Shanghai Pudong Development Bank quickly assisted Xibei
and received a loan of 12 million yuan in four days
On February 1, Jia Guolong publicly stated that due to the epidemic, 4 offline stores in Xibei were basically closed, leaving only more than 1 take-away businesses. It is estimated that the revenue will be lost by 7-8 million yuan a month before and after the Spring Festival, and the monthly expenditure of more than 2, employees will be around 15 million yuan. If the epidemic cannot be effectively controlled,
Siebel's cash flow crisis made banks act quickly.
Two days after the news came out, Liu Yongyan, vice president of Xibei Catering Group, received a phone call from Shanghai Pudong Development Bank Beijing Branch. On that night, Shanghai Pudong Development Bank Beijing Branch set up a working group headed by branch leaders personally and composed of multi-departments and sub-branches, and came up with a set of comprehensive credit and financial service solutions. The next morning, the two sides confirmed the cooperation content through video conference.
On February 6th, Shanghai Pudong Development Bank Beijing Branch completed the approval of Xibei Catering Credit Line of RMB 53 million. On February 7th, after the remote online underwriting and the signing of the guarantee contract, Shanghai Pudong Development Bank landed a working capital loan of RMB 12 million and credited it to Xibei Catering Group.
It took Shanghai Pudong Development Bank four days from the communication between the two parties to the entry of funds.
It is understood that Shanghai Pudong Development Bank's assistance to Xibei is not only to provide loans quickly, but also to deeply intervene in the production and operation cycle of enterprises and cut into the whole business chain of enterprises.
The plan provided by Shanghai Pudong Development Bank to Xibei includes three aspects. First, it provides short-term working capital loans and trade financing lines for Xibei Catering to alleviate the short-term liquidity shortage of enterprises and ensure the payment of employees' wages and the procurement of basic raw materials.
Secondly, Shanghai Pudong Development Bank provides medium-term liquidity loans and "1+N" supply chain financing lines for Xibei Restaurant. Among them, the loan is used for expenses such as enterprise rent, store decoration and renovation, etc., to replace its stock due loans and reduce financial costs; "1+N" supply chain financing is used to solve the financing needs of a large number of small suppliers in the upper reaches of Xibei Restaurant and ensure the stability of their supply chain.
In addition, as Xibei Restaurant is shifting its business focus to online sales and take-away service, Shanghai Pudong Development Bank uses its own platform to give play to the advantages of channels and customer resources to help enterprises ease the sales pressure.
Providing credit support
Banks have taken actions to bail out enterprises
Jia Guolong said that in recent days, the government and relevant departments have recommended a number of financial institutions, and many banks have taken the initiative to find them. Xibei's predicament is a microcosm of the challenges faced by the catering industry, and the help Xibei has received is also a reflection of the recent "warm enterprise action" from local governments to banks.
Since February 2nd, more and more provinces and cities have introduced the "enterprise warming policy", and many banks have introduced measures to help enterprises greatly affected by the epidemic, including loan extension, reduction of penalty interest, loan renewal, improvement of business approval efficiency and other support measures.
On February 7th, the Export-Import Bank said that small and medium-sized enterprises in Hubei Province and the wholesale, retail, logistics and transportation industries, which were greatly affected by the epidemic, were exempted from the loan interest for the whole month of February, and took practical actions to reduce the impact of the epidemic on the production and operation of related enterprises and the financial burden, and joined hands with enterprises to overcome the difficulties and help enterprises tide over the difficult period and restore stable development. This arrangement involves nearly 16 billion yuan in loans, and the amount of interest exemption is about 6 million yuan.
On February 5th, Zheshang Bank responded to the deployment call of the central bank, China Banking and Insurance Regulatory Commission, Zhejiang Provincial Party Committee and provincial government, and launched six measures to support micro-businesses, involving loan grace, active renewal, increased credit, green channel and so on. For example, in providing grace services, February 3, 22 to March 2, 22 is set as the policy grace period (adjusted according to the change of epidemic situation). During the policy grace period, if the small and micro enterprises in the relevant industries affected by the epidemic are temporarily unable to repay the due loans and are overdue, the penalty interest and compound interest will not be counted, and the customer's credit record will not be affected.
On February 6th, Industrial Bank further introduced special support measures from the aspects of credit policy, green channel, application of science and technology, credit guarantee, and due diligence exemption mechanism, and joined hands with small and medium-sized enterprises to tide over difficulties and develop steadily. Among them, wholesale and retail, accommodation and catering, logistics and transportation, cultural tourism and other industries that have a great impact on the epidemic, as well as enterprises that have development prospects but are temporarily in trouble due to the epidemic, are eligible to postpone, extend or renew their loans for up to six months. The overdue interest and penalty interest are reduced for small and micro enterprises in the national standard, and relevant enterprises are supported to overcome the impact of the epidemic by lowering the loan interest rate, increasing credit loans and medium and long-term loans.
Shanghai Pudong Development Bank has formulated five types of financing emergency plans for small and micro enterprises. Through measures such as loan extension, adjustment of interest payment methods for unexpired loans, and reduction of penalty interest, we will effectively help trapped enterprises reduce the pressure of debt service and fully support them to resume production and operation.
The credit approval line of China Construction Bank has taken nine measures to ensure the timeliness of approval decision-making, and mentioned that the application procedures for refinancing business should be optimized for enterprises that are greatly affected by the epidemic.
The catering industry has been hit hard or exceeded SARS
The catering industry has been actively helping itself
The aid policies of the government and banks have come one after another, and the catering industry is also actively helping itself.
Jia Guolong mentioned in a letter from Xibei to 21,87 employees that Xibei and all the catering industries in China are experiencing an unprecedented test due to the sudden epidemic, and more than 4/5 stores in Xibei have closed their dining business due to the epidemic. Gradually open the take-away business, and now nearly 2 stores are operating steadily, and the performance of take-away is also improving. In addition, the company has also thought of many ways to tide over this difficulty. The employees at the headquarters took the lead in expressing their willingness to delay receiving wages and fully support the front-line partners.
In addition to the take-away business, Xibei and Meizhou Dongpo also join hands with Daily Fresh Food to process raw vegetables into standard clean vegetables on a piece-by-piece basis. The catering enterprises mainly provide warehouses and human resources.
Last week, catering enterprises such as Haidilao and Xibei joined JD.COM's "Catering Retail Development Alliance" to promote catering brands to develop semi-finished fast food production.
Dongpo, Meizhou has also launched a convenient "cheap food station". Using the company's own food reserves and resource supply chain, we will provide cheap fruits, vegetables, seasonings, fresh, finished products and semi-finished products from Sichuan to the people of all cities, and lead the company to sell vegetables in front of its own stores.
However, more small and medium-sized catering enterprises are still facing difficulties in aid and self-help. Some brokers predict that the catering industry will be hit or exceed SARS.
wanlian securities said that the catering and tourism industry was hit hard under the epidemic, and its impact may exceed that of SARS, so the industry is expected to reshuffle. More than 1 scenic spots were closed, and many enterprises were closed. Many places have also issued urgent notices, requiring local restaurants and hotels to suspend business. The ordinary people also responded to the government's initiative and resolutely refused to go out, which brought a huge blow to the industry, and it was the Golden Week of the Spring Festival, and the impact on the industry for the whole year might exceed that during the SARS period. The epidemic may cause a large number of small and medium-sized enterprises to close down and a wave of mergers and acquisitions, and the industry will reshuffle, which will benefit leading enterprises.
huachuang securities also said that restaurants have closed down a lot recently, with the passenger flow of opened restaurants being about 2-3% of the normal time. It is expected that they will recover after returning to work after the holiday, but it will be difficult to recover before the inflection point of the epidemic. Therefore, restaurants are in a state of loss during the Spring Festival, and it is highly probable that they will operate around the variable cost line after the holiday, and more small and medium-sized restaurants will close down.
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Source: China Fund News.