Lu Jin's Peer-to-peer model goes into limbo? The prospect of security is actually good

Lu Jin recently caused a big trouble, there is a news that the Lu Jin subsidiary "Ping An international commercial factoring tired 250 million loans have expired, ping an factoring has to start capital pool repayment of investor principal and interest." A time wind four, in addition to sing Lu Jin, many comments are directed at the Peer-to-peer mode mode, that Lu Jin represents the Peer-to-peer model also go into the desperate.

In fact, the Ping an factoring event has nothing to do with the Lu Jin itself, and it has nothing to do with Lu Jin's peer-to-peer. And from what we know now, the 250 million of the loans in Ping an factoring are guaranteed by third parties, and investors will not suffer losses.
banks have reported bad debt rates with little interest from ordinary people, so why do we care about the bad debts of Lu Jin's subsidiaries? Tico thinks, one is the society to the peer-to-peer industry bad debt is too sensitive; second, in the current report, people intentionally and unintentionally Lu Jin subsidiary of the bad debts and Lu Jin platform to confuse.
Lu Jin Subsidiaries bad debts really that terrible?
At first glance, the 250 million of Lu Jin's subsidiaries are really a big number, but we note the details: The project is guaranteed by a third party and investors ' rights are completely unaffected, and the project has nothing to do with Lu Jin's peer-to-peer business.
for ordinary investors, the Lu Jin subsidiaries have nothing to do with the bad debts and will not be affected. But even so, there is still a lot of panic in the investment world, Tico that panic more from the whole peer-to-peer industry transparency, risk factors such as Lu Jin, as the magnitude of the company if the risk of bad debts for the entire industry is very negative impact.
Therefore, we have a basic understanding of the logic behind this panic: under the uneven premise of the whole peer-to-peer industry, the Lu Jin problems of the leader are magnified blindly, which leads to questioning the whole industry. Tico that the question of Lu Jin is largely a question of the industry. What is the future of the security of the
Lu Jin?
As a result of domestic lack of such a sound personal credit system, so Peer-to-peer enterprises in the course of the operation of the transaction to take different forms of security. Whether it is the Lu Jin-style Third-party company guarantee or the "risk Reserve" guarantee for everyone, it is the last resort in the industry.
But the potential risk is that the Security Act is fundamentally risky, the platform side needs to have the ability to slow release risk to continue, and the policy has the guarantee company cannot guarantee exceeds the enterprise registered capital 10 times times guarantee amount stipulation, these virtually all increase the peer-to-peer operating cost, to the investor natural interest rate is lower. In addition, many unscrupulous operators use the guarantee company to do the non insider trading, damaging the entire market environment, is also the biggest hidden danger.
about the Lu Jin to guarantee mixed, Tico suggest you can look from the following point of view
One, Lu Jin has basically said goodbye to the past by China Ping An endorsement of the stage
in the entire Peer-to-peer industry development, the public has a variety of questions and considerations for the industry, Therefore, it is very necessary for Lu Jin to have the Chinese brand of peace. Many investors believe that although the Lu Jin guaranteed Peer-to-peer Company, although the interest rate is relatively low, but the fund security is high, therefore chooses Lu Jin.
and Lu Jin has developed so far, its brand and influence has changed, become a peer-to-peer leader. Lu Jin's own brand can maintain the trust of users. in the context of brand and capital security two-way consideration, Lu Jin to guarantee the risk is not too big problem, and users can get higher interest rates, Tico is optimistic about this.
Lu Jin The impact of bad debts on the peer-to-peer industry
commented that Lu Jin's bad debts opened a peer-to-peer industry Pandora's Box, but Tico that the incident is to accelerate the process of Peer-to-peer industry's fittest.
The bad debt event has little impact on the financial security of the Lu Jin itself, but it is also a cautionary tale for the entire industry: whether the risk of a peer-to-peer security model is fully controllable and whether the funds are fully secure after they are secured.
for small and medium-sized enterprises, no matter what type of security model, the requirements of the Guarantor Cooperation Agency and its own "risk reserve" are extremely harsh. If the Lu Jin is still likely to appear in the security range of bad debt risk, some less qualified SMEs may be a large number of bad debts. Therefore, the whole market should then increase the threshold of entry and accelerate the elimination process.
and after the guarantee, whether the enterprise has the ability to carry out the security assessment of the capital is particularly important, on the one hand, investors need to have a high level of trust in the platform, and on the other hand, the platform in the establishment of enterprise credit files and risk assessment has a very high professional quality. These are not small business strengths.
Therefore, Tico that the bad debt incident to some extent can be understood as a peer-to-peer industry, through the event to accelerate the process of purification of the entire industry, and Lu Jin may be a blessing in disguise as a vested interest in the event.
Besides this, I would like to say a few words to a friend who has gone too far in a peer-to-peer industry: any kind of innovation will have a certain degree of ups and downs, but as long as the law allows, we can not tolerate, we will be surprised when the industry matures.
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