Some people are afraid when it comes to borrowing money. What are you afraid of? Afraid of paying interest, afraid of not being able to afford the loss or repayment, and afraid of being looked down upon by others. Some people say, "I borrowed money from others, so I couldn't eat well, couldn't sleep, and felt sad all day long." However, if a person wants to start a business and develop, he must dare to borrow money. Most successful people in today's business world do not dare to borrow money, but they know how to borrow money. Therefore, there is a saying in the market: those who know how to spend money, spend other people's money; those who can't spend money, spend their own money.
Ma Shengli, "the number one contractor in Chinese enterprises," once said: As long as I can borrow money to make money, I, the King of Hell, will dare to borrow money. Perhaps, some people would like to say: I also know that I don’t have the capital to borrow, but I can’t borrow it and I don’t know who to borrow it from or how to borrow it.
It seems that how to borrow money and how to "make money from money" has become a major topic in the field of investment and financial management.
Borrowing money: Four taels can make a difference
As the saying goes: Borrowing money makes a difference without effort. Those who know how to use strength to exert their strength can use the small to make the big, use the weak to overcome the strong, use softness to overcome the hard, and can use four or two to move a thousand pounds.
During the Three Kingdoms period, one day, Zhou Yu said to Zhuge Liang: You can make 100,000 arrows for me within three days. Zhuge Liang agreed wholeheartedly. It is simply impossible to make 100,000 arrows in 3 days. But why did Zhuge Liang agree again? Zhuge Liang had his own way. At that time, it was necessary to make 100,000 arrows. Even if we had money and materials, we didn't have enough time. What should I do? If I can’t build it, I can borrow it! Who can I borrow it from? Of course, it’s only Cao Cao. Will Cao Cao lend it? Will he lend you arrows to kill him? There are always more ways than difficulties. Nothing is impossible, only unimaginable. Zhuge Liang thought about it. How could he borrow it from Cao Cao? Hence, the famous story of "borrowing arrows from a straw boat" in history.
Also tell a story from abroad. The British Library in the United Kingdom is a famous library in the world with a very rich collection of books. Once, the library had to move, that is to say, it had to move from the old library to the new one. It turned out that the moving fee would cost several million, which was not much money at all. What should we do? An expert came up with an idea to the curator, and the problem was solved for only a few thousand dollars.
The library placed an advertisement in the newspaper: Starting from today, every citizen can borrow 10 books from the British Library for free. As a result, many citizens flocked to the library and within a few days, all the books in the library were borrowed. I borrowed the book, how can I return it? Please return it to the new library. In this way, the library borrowed everyone's strength to move.
From the above two cases, we can appreciate the charm of "borrowing". In the field of investment and financial management, you can also use the word "borrow" to make the land wider and the sky wider.
In the history of Chinese shipping, there was a "shipping king" who made his fortune by "borrowing money to buy ships." He is Hong Kong's "Ship King" Pao Yu-kong. When he started his business, he borrowed money from friends. He borrowed money to buy a broken boat first, then used the boat to go to the bank for a mortgage loan and obtained the loan before buying a second boat. Then, use the second boat as collateral to buy a third boat. He adopted this "mortgage loan" method to grow bigger and bigger in the ocean and became a world shipping giant.
Rather than spending 10, 20, or 30 years slowly groping alone in the darkness, a smarter way is to stand on the shoulders of giants and look far ahead, relying on others The funds and strength are moving forward rapidly, which has the artistic conception of "four taels can transfer a thousand gold".
Various techniques for borrowing money
Being able to borrow money to "make money from money" is of course a beautiful thing. But it is really difficult to borrow money from people. The famous poet Yu Guangzhong once said: "When it comes to borrowing money, few people don't tremble with fear. A limited number of banknotes are hiding in their pockets, and suddenly a hand reaches out and takes them away. It really gives people a sense of safety. I don’t even feel it.” From this, we can see how difficult it is for a lender to borrow money.
However, nowadays, in addition to borrowing from relatives and friends (which is somewhat unspeakable), there are various ways of personal borrowing. You can borrow from banks, pawn shops, private equity associations, and securities companies. Borrow it, or even borrow it from the relevant *** department.
Fifty-six out of ten people have had this experience when borrowing from a bank, and nine out of ten people understand or know about it or yearn for it. Judging from the current situation, although the "threshold" for bank borrowing is relatively high, borrowing money from banks is the most widely used borrowing method. Generally speaking, there are four channels for bank loans:
Mortgage loan refers to a loan method in which the borrower provides certain properties (such as real estate, insurance policies, time deposit certificates, etc.) to the bank as collateral for credit;
A credit loan refers to a loan issued by a bank based solely on its trust in the borrower's credit standing, and the borrower does not need to provide collateral to the bank;
A secured loan refers to a loan that is guaranteed by the credit of the guarantor. Loans issued;
Discount loans refer to a loan method in which borrowers apply for discounts on undue bills from banks to provide financing when they are in urgent need of funds.
In addition, there is also a side loan from a bank - a credit card overdraft, which also has the nature of a short-term loan. Credit card overdraft is actually a variant of credit loan. The borrower applies for a credit card at the bank, and then uses the credit card to overdraft when making purchases, and then repays the loan 20-50 days later. In comparison, credit card overdrafts have the characteristics of short term and small limit. However, as the number of credit card merchants becomes larger and larger, and the threshold for applying for a credit card is lowered and lowered, and the overdraft limit is increased again and again, using credit cards to solve urgent needs has become A must-have for many urban white-collar workers.
Compared with the complicated procedures and long process of bank loans, private loans are much more convenient. The private lending here does not refer to borrowing money between relatives and friends, but to specialized private lending institutions that lend funds to lenders.
Currently, private lending is most popular in Zhejiang, where the private economy is developed, and it mostly appears in the form of underground banks and similar forms. Although private lending interest rates are much higher than bank interest rates, ranging from 8 to 20, they are still very prosperous. The main reasons for their existence can be summarized as follows: due to the many restrictions on loan services provided by formal financial institutions, small and medium-sized enterprises and individuals Industrial and commercial households and individuals have difficulty obtaining loans because they cannot provide guarantees or collateral; the private and individual economies are developing rapidly, and the capital needs of small and medium-sized enterprises are characterized by "urgent, frequent, small, and high". In addition, Zhejiang people have a strong sense of investment and "speculation" The endless groups of groups such as the "Housing Group", the "Coal Group", and the "Cotton Group" are attacking everywhere, which not only shows Zhejiang's investment courage, but also shows the strong financial strength of Zhejiang people, and private lending plays an indispensable role.
According to statistics, in 2003, the scale of private lending nationwide was between 740 billion and 820 billion yuan, of which the scale of private lending by private small and medium-sized enterprises in Zhejiang Province was about 140 billion yuan. According to a sample survey conducted by the central bank, the scale of private financing in Zhejiang, Fujian, and Hebei provinces in 2004 was approximately 55 billion yuan, 45 billion yuan, and 35 billion yuan respectively, equivalent to 15 to 25% of the increase in loans in each province that year.
Similar to private lending, there are pawns. There are almost no restrictions on pawn financing. The items that can be used as collateral are very wide, including real estate, bulk materials, securities, motor vehicles, luxury watches, etc. Lenders can apply as long as they have assets. If the documents provided by the lender are complete and daily necessities are used as pledges, the funds can be obtained within 5 minutes; if vehicles and materials are used as pledges, the pawn shop will release the loan within two or three days; if real estate is used as pledges, the funds can be obtained within 7 days to the loan. In principle, the maximum period for applying for pawn financing is half a year, but pawn financing is the highest among all loans, and the annual interest rate is roughly 30 to 60.
Since the "Thousand Points" in June last year, the stock market has gone through a magnificent market. Many people want to raise funds to trade in the stock market, but they suffer from the lack of suitable channels. This situation will change in the years to come. . According to the "Implementation Rules for Margin and Securities Lending Pilot Registration and Settlement Business", qualified stock investors can apply for margin financing and securities lending from approved pilot securities firms. That is, when investors are bullish on the stock market, they can raise funds from securities firms to buy stocks, and return the funds with interest to the securities firms within a specified period, either in cash or by selling stocks; similarly, if investors are bearish on the stock market, , even if there are no stocks, you can borrow the stocks from a brokerage and sell them first, and then buy them back at a lower price within the specified period.
In addition, in addition to borrowing from official or official financial institutions, seeking financial help from *** is not easy to ignore. In recent years, local governments have increased their support for individual entrepreneurs and introduced a series of preferential tax and loan policies. For example, in August 2000, Shanghai launched a policy of using special funds to promote employment to guarantee business loans and provide government discounts. When a business owner applies for a business loan from a bank, due to insufficient personal guarantee, the city's special funds for promoting employment will provide a credit guarantee on the premise that the bank agrees to the loan. Generally speaking, for entrepreneurial loan projects with loan amounts of 70,000 yuan or less, the city’s special funds for employment promotion will provide full guarantees, and individuals are exempt from guarantees. The amount of the interest subsidy is calculated based on the net number of jobs created by the economic organization run by the borrower, with a maximum subsidy of 2,000 yuan per year. At the same time, Shanghai *** has established relevant entrepreneurial funding funds for business school graduates, laid-off personnel, and 4050 project projects.
Learn to borrow money smartly
With so many ways to borrow money, borrowing money seems to be a piece of cake. No! In today's society, how to borrow good money is also a college question.
Some people would say, Ma Shengli also said that as long as he can borrow money, he is good, no matter who borrows it. In fact, this is a misunderstanding of Lao Ma, or it is taken out of context. He did not see that the premise of borrowing money is that "money can make money."
In fact, among the various loan channels, choosing the loan method that is most suitable for you is the most important. Of course, it would be ideal to get funding from ***, but funding from *** is limited to starting a business, and it is not easy to actually get funding from *** even if you are starting a business.
The next best thing is to get a loan from a bank. However, under the current tightening of monetary conditions, even if you can get a loan from a bank, the "marathon" approval process will make you lose your money. Lots of opportunities. Such examples are not uncommon in real life. Not to mention, this year’s stock market situation has caused many confident investors to prepare to raise funds to enter the stock market at the beginning of the year. They have asked banks whether they can use real estate as mortgage loans. After asking around, one word: difficult. Even if you can get a loan, the amount is very small, usually around 100,000 yuan, and you have to wait for a long time. However, the stock market is changing rapidly. If you miss the rapid rise, it will be difficult to catch up again.
Of course, speed alone is not enough. Loans must come with costs. Don't touch "loan shark-style" pawn financing unless absolutely necessary, because the "snowball" interest is a heavy burden after all. In contrast, private lending is a lending channel that has both speed and affordable interest rates. However, private lending is not very relevant. You can't even touch the door, let alone borrow money.
In short, it is a smart move to borrow money only if you choose the right one.
References: 1 Zhao Huangqi 2007 Research on residential mortgage loan default and early settlement model 2 Zhang Yajun 2007 Discussion on default factors of commercial bank mortgage customers 3 Jiang Jingyi 2005 Impact of partial early settlement of residential mortgage loans on default