Alibaba Small Loans of Supply Chain Finance

Small and medium-sized enterprises face various temporary capital turnover pressures in the production and sales links. These pressures are difficult to resolve in the current financial environment.

1. Accounts receivable cannot be collected in time.

(1) Triangular debt is not a plot on TV, it happens every day in real industries.

(2) The payment collection cycle tests all companies in the industry chain.

2. Workers’ wages cannot be delayed, especially at the end of the year.

(1) The state has issued repeated orders. Once this dispute reaches the arbitration department and the government, the company will no longer be able to continue production.

(2) China’s labor costs are increasing year by year. Companies cannot retain workers without arrears of wages, let alone arrears.

3. Goods production takes a long time in the medium term and requires advance capital for production

(1) Advance capital for production after receiving advance payments has become a must-have capability for small businesses in certain fields. , and the risks that must be taken.

4. Banks provide poor support for small loans within 100,000 to 3 million yuan.

(1) The bank’s approval process and lending cycle for small loans are difficult to solve the problems of small and medium-sized enterprises. Temporary emergency needs.

(2) Banks only focus on loans above RMB 3 million.

5. Personal loans carry high risks and interest rates, and also face credibility problems

(1) One-cent interest was the standard personal loan interest rate before 2013, which refers to one year. Interest is 10% of the loan amount. This is a friendly price.

(2) After 2013, two cents profit will be the friendly price. Personal loans can only be obtained through acquaintances, and the credit requirements are very high.

(3) The rest is usury, compound interest, and the annual interest rate of usury will be above 30%. If the production and sales of goods cannot maintain 30% profit. Basically working for loan sharks.

6. Alibaba Small Loans emerged in response to the times

(1) Lending based on creditworthiness: Provide different amounts of temporary working capital for small and medium-sized enterprises based on the platform's historical transaction record ratings. Focus on temporary turnover.

(2) It provides lending interest rates below 13.5%: anything over 13.5% is considered usury, and lending is not protected by the state.

(2) Integrate some credit companies to provide loans: This is to avoid risks, do loan matching, and transfer risks to third parties.

(3) Lending in the name of individuals: Because the state has zero regulatory policy in this field, the "one bank and three commissions" had no specific management guidance for this field at that time. We can only start with the personal loan model to avoid risks to a certain extent.

1. Integrated into Ant Financial

(1) It has been integrated into Ant Financial Services Company and developed as one of its products

(2) During the same period Also integrated are Alipay, Yu'ebao, Zhaocaibao, and MYBank

2. The scale has covered most of Alibaba's e-commerce systems

(1) Alibaba International Website, 1688, AliExpress, supply and marketing platform, Tmall, Taobao...

(2) Loans for small and medium-sized enterprises must have corresponding evaluation certification on the platform, which is actually the transaction record on the platform.

3. Ali Microcredit is still positioned as supply chain finance for small and medium-sized enterprises

(1) Providing microcredit to manufacturers or buyers in the B2B field

< p> 4. Sell various membership services of Alibaba’s B2B e-commerce platform by trying to catch rabbits

(1) To put it bluntly, if you pay the annual fee on Alibaba’s platform, you can get higher With credit points, when I apply for a loan, I can get it disbursed quickly.

(2) However, all B2B e-commerce companies are well aware of this rule, but they do not say it openly. Many Alibaba telemarketers will privately hint at the relationship between purchasing membership services and loans.

(3) Alibaba Small Loan has grasped the financial pain points of these small and medium-sized enterprises, and has half-heartedly packaged and sold B2B annual membership services, loan services, and credit ratings.

(4) In fact, other B2B e-commerce companies also do this. It’s just that the scale and foundation are not as deep as Alibaba.

1. In the first year, only one company failed to repay the money it owed. Subsequently, the debt was recovered through various credibility means.

2. Alibaba’s small loans are in great demand and are rapidly expanding to all Alibaba’s B2B platforms

1. Huicong

(1) At the beginning, I Instead of investing, we built a platform and introduced loans from Minsheng Bank and microfinance companies based on Alibaba’s model. A handling fee is collected from it (don’t underestimate the handling fee, the total amount is very objective).

(2) After operating for a period of time, he linked the sales of his annual memberships to loan ratings, which quickly promoted the purchase of paying members for his B2B business.

(3) After seeing Alibaba’s in-depth exploration and development speed, HC established a credit company with Digital China. Lending money directly to small and medium-sized enterprises. The model is the same as Alibaba, except that the scale is smaller and the development speed is slower.

2. Treasure Island

(1) The same model as Ali and Huicong is being explored

1. Membership fee promotion

(1) If you purchase a paid B2B membership, your rating will be high, loan recommendation will be easier, and the success rate of credit companies and banks in lending will be high.

2. Handling fee income

(1) The income from hunting rabbits can be used to borrow hundreds of thousands, and small and medium-sized enterprises will not mind paying a handling fee of about a thousand yuan.

3. Borrowing interest

(1) The country has restrictions on the maximum interest rate for loans, so the interest rate of Ali’s small loans is basically based on the country’s maximum limit, which is about 13 %about.

(2) The company’s short loan cycle, combined with the shearing fee model of handling fees, results in considerable income.

4. Integrate the platform of lending companies

(1) CreditEase, Minsheng Bank, and other microfinance companies are doing business in this area, but they suffer from the lack of small and medium-sized enterprises. Transaction data can only be entered into this field with the help of B2B e-commerce companies.

1. The loan business of small and medium-sized enterprises has become the basic business module of B2B e-commerce companies, and the boundaries between B2B e-commerce companies and financial services companies will become increasingly blurred.

2. Based on loan services, small and medium-sized enterprises are tied to different B2B e-commerce platforms and purchase paid memberships on an annual basis.

3. Only if the financial and banking industry truly provides convenient financing services to small and medium-sized enterprises, will B2B companies be unable to suppress these small and medium-sized enterprises from many aspects.