On the 6th, Far Away launched consumer loans. On the 7th, Far Away launched exclusive loans.
These two types of loans caused quite a stir among the user community.
Some supported it, some opposed it.
Some even said that Li Dong had gone crazy from wanting to earn money. Now, he had actually started a usury business.
Far Away did not respond to these topics.
Whether consumer loans and micro-loans were good or bad varied from person to person. Everyone had different opinions. Some supported it, while others opposed it.
Some were grateful to Li Dong and felt that Far Away was becoming more generous.
Compared to the cumbersome procedures of the bank, Far Away's procedures were very simple. The money would be transferred in a few minutes. This was a blessing for those who were in urgent need of money.
When Far Away launched personal loans, some small and medium-sized enterprises were looking forward to it.
At the 2008 Internet Conference, Li Dong and Ma Yun said that they wanted to support small and medium-sized enterprises. If the banks did not give loans to small and medium-sized enterprises, they would change the banks.
What they said that day was not worth mentioning.
However, now that Far Away had obtained a consumer finance license, such a thing could happen.
Of course, the current consumer loan limit was not high. Moreover, it was targeted at the consumer sector. Far Away's current consumer loans were actually a little biased. Fortunately, it was targeted at individuals. Coupled with the low limit, under the unclear legal situation, no one said anything.
However, for small and medium-sized enterprises, without a micro-loan license, Far Away could not lend to them.
Therefore, at this moment, some enterprises that were in urgent need of money but could not get loans from the bank were eager to quickly obtain an online micro-loan license.
As long as they got it, according to Far Away's style of doing things, the door to small and medium-sized enterprises would soon be opened.
…
While the small and medium-sized enterprises were looking forward to it.
Far Away.
Li Dong also instructed, "We have to get the micro-loan license as soon as possible. Now that Ali and the others are promoting the issuance of micro-loan licenses, although we already have a consumer finance license, it will be more advantageous for us if we get it.
Ali was able to do better in the B2B sector previously because they helped some small and medium-sized enterprises to open up the international market.
In Hua Xia, some small and medium-sized enterprises with potential would actually be of great help to the enterprises.
Sometimes, enterprises like us need the cooperation and support of a large number of SMEs.
For the past few years, we've been fighting alone.
It wasn't until 2009, when we established the Retail Alliance and roped in some of the small and medium-sized enterprises in the retail industry.
But such a group was not strong enough!
If a company wanted to be as stable as Mount Tai and influence all industries, it was not enough to dominate a single field.
Roping in small and medium-sized enterprises to become a part of us. The more enterprises that participate, the better it will be for Distance.
In fact, large enterprises did not exist alone.
When we are weak, this doesn't matter, and it doesn't matter much. But when we become strong, we need to consider this.
Corporate loans may seem insignificant, but in fact, they are very important.
Even if we're just a lending platform, it's enough for us to influence these small and medium-sized enterprises.
In the future, when we have some cooperation or expansion activities, the first thing these companies will consider is that they can't be enemies with Far away. They can only cooperate with them.
Because we control their economic lifeline!
Why were banks so powerful?
Loans are very important!
They all owe banks loans, and some companies are afraid that the banks will collect the money in advance and settle the accounts in advance. Many companies were blacklisted in the past.
Although we are not banks, and we don't have the intention to torture these companies to death, as long as we do loans, it is a form of control.
That's why we have to do loans to small and medium-sized enterprises as soon as possible.
With corporate loans, our loan business is almost complete. In addition to Yu 'e Bao's disguised deposit business, Wan Tong's payment and settlement business …
These businesses are all done, except for some intermediate businesses that we cannot do. Far away finance is another form of bank.
In fact, Far away finance is developing in this direction.
In the end, we will definitely set up an internet bank.
Now, Hua Xia has not even opened up private banks, but this trend is getting more and more obvious. I think it won't be long before private banks appear.
As for internet banks, I think they will eventually be recognized by the government and become a part of the financial industry.
For a private company, the final product is a bank. This is also the greatest recognition and protection for the company. "
Internet banking!
When these few words were said, everyone's eyes were a little strange.
In Hua Xia, especially now, when the traditional financial industry has not been affected, banks are the real overlord of Hua Xia.
Banks with a lot of cash flow have some advantages over any company.
In this day and age, is there any company that does not lack bank money?
Almost none!
The bigger the company, the more they lack.
Take Hua Xia's current number one petrochemical company, and number two oil company. Do they owe the bank money?
They do!
Of course, these central enterprises will be funded by the government, and their profits are also scary. They do not lack money, but they still owe money. This is also a fact.
The bank will usually not reject their loans, and they will not ask for money, but it is also a fact that both parties have a debt relationship.
As the creditor, the bank does not care whether the person who owes money is the boss or not. If they really ask for money, the bank has nothing to say.
That's why banks are the real overlord of Hua Xia's business world.
Far away Finance is now in this area. If they succeed, they will be invincible in Far away.
But private banks are not established yet. Internet banking is more difficult than private banks. It will not be easy to be Hua Xia's first Internet bank.
In Feng Yu's previous life, Tencent's Weizhong Bank was set up at the end of 2014 and officially opened in 2015.
Far away, it is very difficult to get the government's approval for so many years in advance.
In the meeting room, no one said a word.
Li Dong did not continue this topic and continued. "Other than these, there is also the issue of consumer loans and exclusive loans.
As the first consumer loan on the Internet, we will not go through the traditional financial channels.
For a traditional small loan company, most of their final source of funds was through banks and shareholders.
Of course, I am talking about the regular small loan companies. I will not talk about other private capital flows.
This time, I have considered for a long time. We do not need to go through the banks, trust, and insurance channels. As for shareholder funding, we do not have the ability to support it.
That's why I want to raise funds through the ABS channel.
The final annualized interest rate for consumer loans and exclusive loans could reach an average of 20%. Of course, interest was interest, and there would definitely be some bad debts. Excluding these, the final income would not be so high, but it would not be a problem for it to be above 10%.
As for ABS financing, I looked at the financing of other platforms a few days ago. The average is between 3.8% to 8.5%.
Also, the duration of ABS is not short. Three to five years is the norm.
If the project market is good, with Far away's qualifications, it should not be difficult to get an interest rate of around 5%.
"Nowadays, the interest rate for large loans is over 3 years. The difference between the two is not big, and compared to the banks, ABS financing is easier to approve, and it is easier to raise funds.
Most importantly, there is no need to pledge!
"In the past, we used to pledge our assets for loans. But consumer loans are not for us, and it is impossible for us to pledge our assets.
"But if the banks do not lend, our capital will only be 2 billion, and it will not meet my expectations.
"Next, the group will start preparing to raise funds through the ABS channel.
"Although the scale of consumer loans and exclusive loans is not large, with only about 13 million in two days, including today's funds, it should be about 20 million.
"Also, most of our loans are short-term one-month loans. In other words, according to the current level, we will eventually release about 200 million a month.
"After a month, most of the money will be returned.
"But now is now. As time passes and our credit system is successfully established, we will establish credit channels for more users and open up their loan business. I think the scale of loans will increase greatly.
"In the end, the monthly capital flow will definitely not be a small amount. I think it will not be long before it exceeds 10 billion.
"So, we should do some preparatory work in advance. After all, it is our first time doing this. I mean, in August, we will make a 10 billion financing plan. The interest rate is about 5%, and the duration is three years.
"The main body of the project is our consumer loan project.
"Let's test the market situation first, so that we will not do such projects in the future. We have no experience …"
After Li Dong finished speaking, Cao Jinsheng, who was Far Away from the Finance Department, said hesitantly, "General Manager Li, what you said is generally feasible.
"But you may not like to hear it. Even if the scale continues to expand, by August, our monthly loans will not exceed 2 billion. This is inevitable.
"We will start financing in August, and the speed of ABS financing is still very fast. The financing plan may be completed by the end of August.
"And this kind of special financing, the balance of the financing will only go into the project, which means that this money can only be used for consumer loans.
"In the end, 10 billion of funds may become our reserve fund. Even if it is put into the bank account, there will still be profits, but the profits will not be too high. In the end, we will have to pay at least 2% interest.
"In addition, ABS financing also has to be charged, usually about 1%.
"I think it is too early to raise 10 billion now. If our scale does not exceed 2 billion in a short period of time, then there is no need to raise so much.
"Otherwise, we will lose at least 200 million a year.
"In fact, even if we want to raise funds, 1 billion in advance is more than enough …"
Cao Jinsheng also calculated for Li Dong based on the actual situation.
"Far away Finance, there is no need to leave so much money empty. Compared to the current scale, 10 billion is too much. Moreover, it is not our own money.
"If we can't release the money, we still have to pay interest to others. Is there a need to do so?
"Far away Finance's account is left with 10 billion. A year later, there will still be so much money on the books. Far away, a loss of 200 million would be the least.
After he finished speaking, Li Dong frowned and said, "Didn't I say it before? "Next, as our credit system is established, we will open up the entrances on a large scale.
"Yesterday, I said that around October, the two types of loans will reach 20 billion.
"Do you think I am joking?
"Is 20 billion a lot? "Is 10 billion a lot?
"Wan Tong now has more than 200 million users. My plan is to gradually open up the user rights, and in the end, it will reach at least 10%. This is the minimum.
"20 million people can take out loans for consumption. Even if only half of them are using it, there will be 10 million people.
"The per capita loan limit is 1,000 yuan, which is 10 billion.
"How long do you think it will take?
"As long as the credit system is established, it can be done at any time!
"Therefore, we will prepare in advance. At most, we will pay an additional one or two months of interest fees. The actual time may be even shorter." When corporate loans are opened, what is 10 billion?
"The interest for a month or so will be earned back very quickly from their interest difference. In the end, we will only earn and not lose.
"It is better to prepare in advance than not.
"Otherwise, when the time comes, we will not have enough reserves and customers will not be able to release the money. That will be the biggest blow to our credibility.
"For this matter, you have to think three steps ahead. Don't just look at the things in front of you. Our scale is small, but will it always be this scale?"
After he said that, Cao Jinsheng thought for a while and could only say, "Then we will start preparing immediately. However, 5% for three years …"
"At the current ABS platform, 5% interest rates are generally short-term interest rates, which are generally about six months to one year."
Li Dong wanted to use this interest rate for three years of financing, but it was a little difficult.
"Let's give it a try first," Li Dong said calmly. "In fact, users who participate in financing not only consider the interest rate, but also the reputation of the company. "Small companies need to use high interest rates to attract people to participate. So far away, at least we have some reputation now. The key is stability. "At present, there are not many large companies participating in ABS financing, and the interest rate given by the government is not high. Although we can't compare to the government, to put it bluntly, some small countries may not necessarily have our credibility and reputation."
"Since he had already said so, what else could Cao Jinsheng do? In the end, he replied," Okay, then I will go back and prepare. "
As for 5% for three years, whether he could raise 10 billion yuan would depend on his luck.
Li Dong could not blame him for not being able to raise that much. After all, 5% was really not high. Now, the bank's three-year term was not much different from this.
Of course, this was global financing. Hua Xia's deposits had interest, and some countries even had to pay for their deposits. One could not look at the problem purely from Hua Xia's situation.
For some foreign investors, 5% was acceptable.
However, things were not as simple as Li Dong said. So far away's fame was mainly concentrated in China. It could only be said to be average in the world. This probably depended on the situation of Weibo going public.
As long as Weibo went public and became popular, then So far away's fame would be established worldwide.
Once Weibo did not achieve the desired results, So far away's subsequent financing would be much more difficult, regardless of the financing channel.
Cao Jinsheng was thinking about So far away's finance. Yuan Chengdao, who had been silent at the side, looked at Li Dong thoughtfully.
In the past, Li Dong rarely cared about this, and he would not deliberately consider what channels to use for financing.
Now, listening to Li Dong's words, he should have done some research on the ABS for a period of time. Otherwise, he would not have opened his mouth and said what the interest rate range was.
Was Li Dong really just trying to raise funds for So far away's finance?
Yuan Chengdao felt that it was not just that!
Now, he would first raise 10 billion to test the market. Once the market was good, So far away's project would be sought after. Then, would there be a financing plan of 50 billion or even 100 billion or more?
What was the use of so much money for?
No matter how much money was used for financing, it was not his own money, and he had to pay interest.
Even if it was only 5%, 100 billion in financing, the interest alone would be 5 billion in a year.
If this 100 billion could not create more than 5 billion in profit, then it would be a loss.
Once there was a loss, the loss was not just the 5 billion. The key was that the ABS financing itself was guaranteed by the project itself.
If this project did not make money and instead lost money, then the impact would be even worse. So far away's interest would be subsidized, and it would cause some adverse effects.
After all, in the eyes of many people, investing So far away was invincible So far away and not making a loss.
But if Li Dong used this money to carry out retail mergers and acquisitions, would it really be profitable in the short term?
Yuan Chengdao had doubts about this. At this moment, Yuan Chengdao was slightly worried.
Thinking about these things, Yuan Chengdao was slightly distracted.
It was not until he felt the gazes around him that Yuan Chengdao woke up and looked up at everyone.
At this moment, Liu Qi reminded him in a low voice, "General Manager Li wants you to summarize the performance of the first two quarters of the first half of the year."
It was already July, and half of 2009 had passed. The summary of the first half of the year should be out.
As the group's CEO, the summary of the first half of the year was naturally the clearest.
In fact, today's meeting was to summarize the first half of the year. The previous discussion was just an extra topic.
In the end, when Li Dong asked a few questions, Yuan Chengdao did not respond. This naturally attracted everyone's attention.
Liu Qi reminded Yuan Chengdao and he quickly said, "Just now, General Manager Li mentioned ABS financing. I was just thinking about whether there are other projects So far away that can also be financed through ABS. I was lost in my thoughts. Sorry."
After a simple explanation, Yuan Chengdao saw that Li Dong did not care about this, so he breathed a sigh of relief.
Then, Yuan Chengdao picked up the document and began to talk about the business summary report for the first half of the year So far away.
In the conference room, everyone else listened carefully. Li Dong even began to write and draw. It was obvious that he still attached great importance to the performance of the first half of the year So far away.
After all, there were a lot of moves in the first half of the year So far away. A lot of groundwork had been completed in the first half of the year. Whether they could make a major breakthrough or not, the performance of the first half of the year was still very important.
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