What is the loan demand? Borrowing demand means that individuals or companies are short of funds for various reasons, and their demand for cash exceeds their cash reserves, so they need to borrow money. So what is the specific reason why demand leads to insufficient cash reserves?
1. Demand caused by sales change:
1, seasonal sales growth, companies with seasonal sales characteristics, inventory and accounts receivable assets will show seasonal growth. In order to prepare the goods in advance, such as the Dragon Boat Festival, many dealers need a sum of money to operate after the year, and now they need another sum of money to prepare the Mid-Autumn moon cakes. This part of financing is called working capital investment. General companies will try their best to use internal funds to meet the working capital investment. If the internal financing cannot be met, the company will apply for a short-term loan from the bank. 2. Long-term sales growth, sales revenue keeps stable and rapid growth, operating cash flow is not enough to meet the growth of working capital investment and capital expenditure, and asset efficiency is relatively stable, indicating that asset growth income increases rather than efficiency decreases. It means that the cash flow required for the good operation and expansion of enterprises should also increase.
The second is the decline in demand and asset efficiency caused by asset changes.
? If the company's cash demand exceeds its cash supply, then the decline in asset efficiency and commercial credit may be the reason for the company's loan. The change of the company's business cycle will inevitably require enterprises to increase extra cash. Under normal circumstances, the increase of accounts receivable and inventory and the decrease of accounts payable will form the loan demand of enterprises. There is a formula to calculate the periodic decrease of accounts receivable by calculating cash flow. If the enterprise's accounts receivable extend the collection time, it means the extended time, and the funds are in the hands of customers, not the company. At this time, the enterprise needs to obtain cash through other channels to meet the demand for this part of cash in operation, and how much money the enterprise needs in the future to meet the cash flow problem); 2. 1 Replacement and expansion of fixed assets. The main reasons for the renewal of fixed assets are the natural aging of equipment and technical renewal. In order to improve productivity, many companies may replace assets before the equipment is fully depreciated. For example, the factory building is upgraded, the storefront is old, and it needs to be rebuilt. 2.2 The expansion of fixed assets, factors that affect the utilization rate and residual life of fixed assets, will also have an impact on the expansion of fixed assets, as well as factors that need funds such as factory expansion, new product lines and introduction of new technologies.
Third, the demand caused by changes in liabilities and dividends.
? 1, the decrease and change of commercial credit, when the company is short of cash, when the company is short of cash, the supplier is usually required to postpone the payment of accounts payable. However, if the company often fails to pay the payment on time, the commercial credit will be greatly discounted, and the supplier will ask the company to pay for the delivery. In fact, if the repayment period of accounts payable is shortened, the company will have to use the later due accounts payable to repay the due accounts payable, thus reducing other expenses, which may cause the company's cash shortage, thus forming a loan demand; 2. Debt restructuring: If the sales revenue grows fast enough and the growth of core current assets is mainly achieved through short-term financing rather than long-term financing, then at this time, short-term debt needs to be restructured into long-term debt. The term of substitute debt depends on the reasons for shortening the payment term and financial mismatch, as well as the company's ability to generate cash flow. Another factor is to reduce the current financing cost. In the process of enterprise development, due to the shortage of funds, many customers do not have a good accounting of the cost of using funds, and get some funds through loan companies, online lending companies, and private channels. If the funds in this area are used for a long time, the profit return rate of the enterprise cannot be covered. The change of dividend is mainly the dividend demand of listed companies, so I won't introduce it here.
? Fourth, the demand caused by other changes.
1, the profit rate drops and the profitability is insufficient. If the company's profit is low or almost no profit for several years, it will lose a lot of cash. Therefore, companies need to rely on loans to meet various expenses. Because it is difficult for low-profit companies to get cash income. It is impossible to accumulate enough funds for seasonal expenses and unexpected expenses, so low profits may cause loan demand. In the analysis of actual loan demand, the profit trend of the company is very important, because the economic fluctuation is large, and the operating profit of a single year can not fully measure the long-term impact of profit changes on cash flow and loan demand; 2. Unexpected expenses. The company may encounter unexpected expenses, and assets or employees are accidentally injured, which exceeds the loss of insurance. Once these expenses exceed the company's cash reserves, it will also lead to the company's borrowing needs.
? To sum up, four factors are also common borrowing needs. But in fact, at present, more customers have several aspects of loan demand, 1 is debt restructuring, and 2 is the decline in profit margin and insufficient profitability. First of all, it was reported at the beginning of the year that the household debt ratio in China was actually high. Many factors, income and expenditure are not proportional, overdraft consumption, but income has not kept up. Basically, they rely on loans to support their survival and credit cards to maintain the status quo. However, if there is no increase in income, just like the water in the pond, it will slowly dry up. A simple household debt ratio: 50% of the debt exceeds the household assets is the red line, 70% is the warning line, and if it exceeds 70%, it is recommended to subtract it immediately. Therefore, debt restructuring is not only a company, including families, but also a truth. When it comes to declining profit margins, the customers we often meet are actually problems with the company's business model.
Now that we have entered the era of low profit, if we run the company according to the old thinking, we will certainly face many difficulties, such as product update iteration, sales model change, cost control and so on.