Online Peer-to-peer Financial "beneficial network" huge turnover

As a Peer-to-peer financial platform, the favorable network positioning of ordinary investors, the minimum of 50 yuan can participate in investment, at the same time commitment to 12% of the annual income and principal and interest guarantee, to meet the public users of low threshold, High-yield financial products demand.

Recently, the online Peer-to-peer financial platform to facilitate the formal and soft silver China Capital (SBCVC) signed an injection agreement, access to a favorable network since the establishment of the first round of financing, the scale of tens of millions of dollars. The beneficial net February 25 this year on-line, the current total turnover has exceeded 260 million yuan, the registered user is close to 100,000, the user manages the total income to exceed 5 million yuan.

As a Peer-to-peer financial platform, the advantageous network locates the ordinary investor, the minimum 50 yuan can participate in the investment, at the same time to the investor promised 12% annual return (equal to 30 times times the bank current income) as well as 100% principal and interest guarantee, caters to the populace user to the low threshold, the high income financing product demand, has already launched the fixed Monthly two products.

The borrower side, the favorable network positioning financing needs less than 60,000 of small micro-enterprises, and through the offline microfinance companies to transfer bad debt risk, now and the letter, credit, credit, three microfinance companies reached cooperation. Line under the combination of the model is also a good network with everyone to lend, Pat Credit and other Peer-to-peer financial platform the biggest difference. All of its borrowers are directly recommended by offline microfinance companies, and so the risk of bad debts is transferred directly to the small lenders – if the borrower does not have the money, the small lender is responsible for repaying all the principal and interest. Theoretically, investors are a steady earner, which is tantamount to depositing money into the online bank on a regular basis. So, what they do is the typical O2O, more specifically the C2B, the mode of the Business-to-consumer. These letters represent investors, the benefit net, the small loan company, and the borrower, while the middle two B explains that it differs from other Peer-to-peer websites.

Why are there differences in this pattern? Liu Yannan, founder of the beneficial network, explained that, from a big point of view, China is a country without a credit system, which fundamentally determines that credit must be a labor-intensive industry, and that the audit mechanism is simply not guaranteed by the line. For example, if you're a store-shop chief who wants to borrow money, how can you prove your real business online? It is impossible for others to go to the shop to visit.

So in his eyes, this also leads to such peer-to-peer lending sites will have a low potential default rate. In fact, "the bank's bad debt rate is 1%." "Thus Liu Yannan does not believe that everyone loans 2% of the risk pool can be in the event of bad debts to ensure the interests of all investors-the reality is that, if there is bad debts, the practice of everyone is the first to get the money, the risk of the pool to the end, and the racket loan simply let the investors By contrast, the benefit net will let the small loan company be responsible for the end.

However, you may wonder, as a lender of its own, that is, the investors, offline small lenders why to give favorable referral customers, but also to the benefit of the security party to bear bad debts, where is the momentum? The problem can be seen from three. 1. In a big market environment, China has 48 million of small micro-enterprises, and only 300,000 of the loans available, as evidenced by supply and demand, which can actually explain why all kinds of peer-to-peer lending websites have sprung up. So, the small loan company can do the customer after all limited, do not why not recommend? 2. From the point of view of capital costs, the money originally used for lending can also be invested in other higher-yielding projects; 3. According to Liu Yannan, the risk-control mechanism offered is still reliable. To a favorable referral client, a small loan company may receive three parts of the income, namely a favourable recommendation fee, a fixed intermediary fee provided by the borrower, and a guarantee fee based on the credit rating. The risk of a buffer of 7% to 8% should be able to withstand the risk of repayment of the principal due to bad debts.

Speaking of why to do such a product, in addition to the previous investment banking background, Liu Yannan told me, because the financing is just needed--China's open financial products line of turnover of 7 trillion a year. and care of the market, the current market of existing financial products include bank deposits, stable but the yield is very low; funds, stocks, fluctuations in earnings, risk is not controlled, and the professional threshold is higher, do not understand the fund, stocks can not play; In addition, there are trust products, but basically are the starting point of 501 million, ordinary youth can not afford to play.

Liu Yannan, co-founder and CEO of the network, worked at investment bank Merrill Lynch last year and returned to form a team that now has more than 70 team members. This June, the network also formed a special advisory committee, the Chinese economist Chen, Lenovo Holdings Limited vice president Hony was invited to join.