Sino-Neo: A pioneer in small business credit

Correspondent Heshashaya newspaper reporter Shi in the United States, more than half of the start-up companies have won the Silicon Valley Bank (SILICONVALLEYBANK,SVB) loans.　　The key to the success of Silicon Valley banks is the close relationship between banks and venture capital, which provides commercial banking services to the companies they invest in, and when start-ups are short of cash, Silicon Valley banks can offer loans at the fastest speed in the shortest possible time. So in the eyes of many high-tech start-ups, SVB's position is second only to Angel investment, and often becomes their "lifeline". With this business model, SVB has been founded since 1983, with assets of $5.5 billion trillion, 11,000 customers worldwide and a bad debt rate of only 0.5%.　　, the performance is quite good.　　Since the beginning of 2008, this kind of "life-saving Straw" also appeared in China, the foothold of SVB is Zhejiang Sino-New Force Security Co., Ltd. (hereinafter referred to as "Sino-New Force"). The path to the exploration of Silicon Valley experience "from a conventional point of view, the basis of credit is that enterprises need to have enough fixed assets for mortgage, but I think the essence of the value of the enterprise is reflected in its profitability." Enterprise's assets, not only fixed assets, but also intangible assets, such as brands, technology, models and so on. and enterprise assets are dynamic development.　　"The founder, chairman and CEO of Chenhangseng, said. Sino-Neo's small business credit pioneer tour began with the introduction of the "fourth party" model of the bridge tunnel under the existing guarantee mode.　　This "fourth party" can be a venture capital institution, or it can be a company's peers and upstream and downstream. "During the loan period, if the enterprise closes down or fails to repay the bank's loan on time because of loss, then only then satisfies certain condition, the fourth party may enter the enterprise in the form of the stock purchase, the technology acquisition and so on, brings the cash flow to the insured enterprise to repay the bank's debt.　　Chenhangseng explained. Chenhangseng's "fourth party" theory attracts the attention of NEA, one of the country's three largest venture funds.　　Jiang Xiaodong, managing director of Nea China, said the model had been implemented in Silicon Valley and that financial services had only just started in China and had a huge space for development. As a result, NEA together with the Silicon Valley Bank joint capital injection of new strength, the capital increase in the new strength of the registered assets from the original 200 million yuan to 280 million yuan, become the largest guarantee enterprises in Zhejiang Province.　　After the increase in capital, now two foreign institutions holding 32.4%.　　The innovation of risk control since 16th century, the shadow of financial innovation has been flashing behind all financial crises, so it is vital that the risks of each financial innovation be regulated. "Risk control is the core of every financial institution, and the new force will control it from the idea and operation process." Chenhangseng said, "The difference in the risk control idea of the new Sino-us is that we are a dynamic process in resolving the risk, not just a certain risk of a company to resolve, not entirely dependent on the businessPeople's skills and moral standards to control risk, we are through increased risk mitigation channels to solve the risk problems faced by enterprises, which is interlinked with the many ideas of Silicon Valley Bank. "The bridge-tunnel model is one of the effective ways to reduce the bank's bad debt rate," he said.　　"Although venture capitalists will be forced to invest as" fourth parties "when they are unable to repay their loans, this" investment "is based on a bullish view of the firm in the previous year, so the risk of loss is very small for venture capital itself. To a common network (Hangzhou Andvey Network Media Co., Ltd.), as an example, due to large-scale expansion of the business needs a large amount of capital injection, then a common network to a bank to make 5 million yuan loan requirements, but the bank with its lack of fixed assets can be mortgaged on the basis of the refusal to lend.　　In spite of the intention to invest at the time, but because the foreign currency funds to enter the domestic need for a long time, so the new force to the Ding-hui as a "fourth party" for the total network to provide security, so that a common network to obtain bank loans. In addition to the bridge and tunnel model, the mode of mutual aid and integration has a similar pattern. "The mutual aid and integration mode of Sino-New forces is innovated and improved on the basis of the former mutual-insurance model." Chenhangseng said, "Mutual security is called ' Even strains sit ', for example, 5 companies go to bank loans, mutual guarantee, if a business problems, then the bank can find 5 companies in charge of any one, if each enterprise loans 50,000 yuan but to bear 250,000 yuan risk, which tied up the hands and feet of excellent enterprises, is a kind of pollution in the financial industry. "As the foundation for innovation, the 5 companies only need to bear the risk of their own 20%, even if the worst case also need to pay more than 20%, so risk expectations become a limited risk." And for the directors may exercise, with the 20% of the two, only beyond the scope of the need for their own commitment, thus realizing the limited transfer of risk.