Rookie Watch Peer-to-peer network crisis: Domestic Peer-to-peer lending Platform Pure Cottage version

A friend told me in 2012 that he had entered the "fashionable" internet finance, the so-called Peer-to-peer network lending platform, when I wanted to hook up with the financial and Internet, so I envy. But he is now feeling "worried" about the allure of the "Blue Sea", "The New Frontier", "Finance" and "high Yield". Through a number of facts and personal participation, today to "rookie" perspective and examples to give some real talk about my eyes "peer-to-peer network lending."

Domestic Peer-to-peer lending platform, Pure Cottage version

Peer-to-peer Microfinance is a kind of business model that gathers a very small amount of money to lend to a group of people with a capital requirement, and Peer-to-peer is the peer to peer meaning of point to point; 2005 originated in Europe and America. Based on the sound credit system and credit system, this model can be active in private finance and solve the financing problems of individual and small and medium-sized enterprises.

After in-depth understanding, I found that the domestic Peer-to-peer lending platform is not really a peer-to-peer. The following points are elaborated:

1, is it really a point-to-point transaction? The answer is No.

Where do----investment clients come from?

Domestic Peer-to-peer lending platform for most of the offline operation to attract funds (heard that a few well-known Peer-to-peer lending platform is pure online, I really do not believe that, perhaps only the line accounted for more than just). The operating companies of peer-to-peer lending platforms typically set up a financial services unit, a loan business unit. The Wealth Management Department will pack some financial products, through the channel to sell, and in the company to establish a financial pool, a successful loan business from the pool of funds deducted. Of course, marketing these financial products is not so easy, because after all, is not a banking institution, let customers give money to you difficult. Therefore, the net loan company's wealth management products yield is very high, far higher than the bank financial products, often "hooked" customers are some old people. Friends say the majority of the elderly companies to do the signing procedures. As to who the investors ' money is, they have no idea, they only know how much they can earn from the company by buying a financial product, six months or a year later.

Online investors also have, but accounted for very little.

Each network loan platform in order to prevent their customers are dug away, so the loan label about the customer information will be very conservative, description of the content is very small, investors simply can not judge the quality of the customer in the end how. So who is willing to take such a big risk to invest? After understanding, I summed up the following three main types of investment customers: one is a large amount of money, to the platform to wash white; the second category, there is no official work, want to do their own projects to get profit; The third category is in this industry mixed, for the platform of the trouble is very sensitive, If you find something wrong, you will withdraw the money. The first category is the main source of online investment funds, the single client has millions of of the money on the platform to repeat the investment.

NET loan platform Of course I hope that the more online investors the better, but as long as investors do not solve the financial security problem, this idea is very idealistic.

Where do----loan clients come from?

As mentioned earlier, the company will also have a loan business unit. The department expands its clients through telemarketing, unfamiliar visits and even through development channels. The salesman is responsible for collecting the relevant qualification information of the loan customers to the company's wind control department, the Wind Control department to control the risk. The customer loan qualification OK, the loan customer (or the salesman helps the customer) will release a loan target on the company's net loan platform. As for this target is the customer to vote or by the net loan Company's offline financing funds to vote, readers should be very clear?

So Peer-to-peer lending platform is just a convenient company to take a form, to prove that they are "clean", point-to-point trading, is purely fictitious.

2, principal protection, exposing the nature of peer-to-peer network loans

At present, most of the net loan platform to investors promise, in case the investor's investment project has bad debts, by the net loan platform to advance the principal, this is a violation of the essential characteristics of peer-to-peer, that is, point-to-point trading. Once the net loan platform participates in the principal guarantee, that name is a guarantee company. The guarantee company's guarantee amount cannot enlarge indefinitely, but the net loan platform may carry on the principal guarantee indefinitely.

Of course, the network loan platform is willing to carry out the principal guarantee, imagine the platform to their benefits driven by how big! It is understood that most of the net loan platform's margin rate as high as 20%-30% (except for individual network loan platform, except bad debts), therefore, this is not only a platform!

The biggest heart, the escalating bad debts

Bad debt is a net loan platform can not say the secret, there are bitter can't say, rotten death in the belly can only smile. A lot of net loan platform to disclose bad debts in 3%, to tell the truth, this is just self-deception. So the current net loan platform of bad debts to how dangerous degree?

A friend's company, both internally and externally, claims that its bad debts are within 2%. How ridiculous it looks now! I have been in my friend's loan platform for hands-on practice, the second half of last year took a small amount of money on the site to diversify the investment, each with a minimum amount of (50 yuan) to tender, a total of nearly 200, half a year down, overdue loan label more than 10% ( The company is said to have a high profile in the industry and is ranked among the highest in terms of size and industry concern.

Readers must be very confused, why so many bad debts, net loan platform can survive, and there are so many companies eager to join. According to my friends, their company from last July to this February, the number of employees increased by 200%, less than six months this year to complete the last year's performance. Yes, by expanding the scale, a large number of absorbing funds to cover up the high rate of bad debts. After the size of the company, the "luxurious" lineup to "integrate" resources to expand more marginal business, such as trust products, financial products and so on. As for how to operate, I do not understand finance, and did not participate in the financial department so can not be informed. But the risk is very high, one is "luxury" behind the company management chaos, and operating costs even far beyond the profit, from top to bottom in the "Great Leap Forward" state. To allow the company to operate normally, only by expanding the size of the fund. Imagine if a company's capital chain had a little problem, it would crash completely. With the exposure of a large number of "runaway loan" incidents, there are more and more worries about the industry.

About half a month ago, received the network loan company's friend Telephone, said recently very empty, asked me to come out to drink coffee spit the trough. After meeting to talk about the net loan industry, he disclosed some information enough to let me this layman's people shocked. When I asked: Your company's business is very busy, why do you have time to come out to drink coffee with me? A deep sigh of relief: what you see is superficial, but the company does make a lot of people rich.

Here are some of the information I know. In order to promote performance, the company to the Business unit High Commission, especially the loan side of the salesman (it is said that many of the school just graduated students), a monthly commission of tens of thousands of. Then the salesman expands the loan customer does not return money to do? The salesman is not responsible! This is another sticking point of bad debts! So the loan salesman to develop various agents, collect all kinds of garbage customers, earn attractive high commission. The rapid expansion of a year, the entrepreneurial mentality of enterprise operators to make bad debts, the rapid expansion of the runaway loan incidents so that operators have to face the fact of bad debts, and consternation of the results of the liquidation of bad debts. So the lender to suspend lending, focus on the collection, financing end of the queue. The desperately of this disorder will only lead to the company and the entire industry operating ecology suffered a huge blow, the salesman with the garbage customers together "job-hopping", the risk of transfer to another network loan platform. Of course, this situation will not last long, the operator will eventually choose to continue to recruit, continue to lend, because stop! Financial funds can not be long queues, funds to accelerate the flow of companies can continue to survive! Hence the need for more and more funds to cover the growing bad debt gap and huge operating costs!

The fish is mixed and needs to be regulated

China's peer-to-peer industry is very immature, mainly in three aspects:

First, the Chinese credit system and integrity of the environment is not perfect, can not monitor the private financing records of borrowers. With the development of the network loan industry, and even cultivate a group of "loan professional", they understand the loan process, through information fraud, short-term leasing business venues to defraud loans. On the phone of the wind control personnel to respond freely, and even know how to create a prosperous scene to confuse door-to-door wind control personnel. (Learn about the company encountered a lot of similar cases, I guess not to exclude the salesman and loan clients collusion phenomenon, please refer to the above text)

Second, the trading platform security is worrying. The net loan platform involves a very large transaction fund, with a daily turnover of up to hundreds of thousands of, or even millions of. And because the threshold of this model is low, many companies only spend thousands of yuan can buy ready-made platform; While some companies find technicians to develop themselves, but because management does not understand technology, technical personnel for such a business model is unfamiliar, so developed a system there are many loopholes. With the growth of business scale, systemic problems are becoming more and more serious, investors ' capital security is worrying. Investigated a number of forums, there are many investors complained that the network loan platform can not be timely advance, or the fund accounts are not right.

Third, the transaction fund is not a pair of, but through the Web site platform account, in case of the platform to flee, investors will be wiped out. Although many platforms are now under the banner of "Third-party payments", they want to clarify that they are not deposit lending. That's not true! Both sides of the transaction of money through Third-party accounts to recharge, this way does not guarantee the security of funds, investors will eventually go to the net loan platform of the company account, from the company account into the borrower account. So far, there is no network loan platform to solve the problem of fund hosting.

By the end of December 2012, the latest statistics show that the current domestic active network loan platform has 300, the relevant departments should be issued as soon as possible relevant policies to regulate, otherwise this will be a time bomb, threatening China's financial markets.

The above text is my shallow see, but the sentence is sincere, hope can give the reader a little thought, the rational view of China peer-to-peer lending industry! Also welcome professionals to shoot bricks!