Self-financing is when business owners with their own entities come to open an online loan platform online. The funds raised from the Internet are mainly used for blood transfusions for their own companies or affiliated companies. However, this kind of self-financing platform is extremely prone to risks. Choosing a self-financing platform

Financing platforms are almost tied to the operating risks of the platforms.

In order to attract investors, most self-financing platforms adopt high interest rates and split bids.

On the one hand, it promises high rates of return.

In order to compete for funds among platforms, the promised rate of return has been rising.

On the other hand, the project cycle of P2P platforms is short and the amount is large, and some targets only last a few days.

The harm of expanding information self-financing platform 1. Directly defrauding money is tantamount to robbery.

2. Trying to fill the hole only results in the hole getting bigger and bigger.

There is a capital hole due to a large number of bad debts, and self-financing is used to fill it. It was never thought that the self-financing period is short and the interest rate is high. Once the bad debts cannot be repaid or new ones appear, more and more funds need to be self-financed, and eventually collapse.

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3. Profit is the priority, and risk control is greatly reduced. The original purpose is to earn interest differentials, which actually results in loss of principal.

Due to the high randomness in obtaining funds, there is a fluke and self-confidence mentality of underestimating risks and overestimating profits when earning interest rates, which relaxes the strict requirements of risk control, often leading to overdue projects or bad debts; if a high-leverage type is carried out,

Venture capital may lose everything.

4. Due to poor management of self-owned industries, self-financing funds cannot be repaid. Use self-financing funds to serve your own industry. First, the capital cost is high. Second, the repayment ability is often overestimated. Once there is a default on your own, either the platform will go bankrupt directly, or it will go bankrupt.

A vicious cycle of reinvention.