"Mr. Zhang, as far as I know, it's difficult to find institutions to get funds! All the big guys from banks and trusts have their nostrils turned to the sky.
Also, how are the benefits distributed? If there is a bad debt, who will pay for it?
In state-owned enterprises, all leaders do not seek merit, but seek no faults.
If we just come to our door to discuss cooperation, it’s probably not going to work.”
Fan Hongyang shook his head repeatedly. In his opinion, Mr. Zhang's starting point was a good one, but it would be too difficult to implement it.
"What you said is all right. But we can't walk on one leg and place all our hopes on Yimin Financial Management.
If something goes wrong in the P2P industry in the future, we will stop working.
So we have to be prepared."
Zhang Yida is very sensible and has already started planning for transformation in advance. A company should consider transformation when it reaches its peak. If it waits until it is in decline, it will be too late.
"No way! P2P is very popular right now. Some time ago, I saw a company put an advertisement on CCTV.
Now the capital market is optimistic about this industry, the state supports this industry, and users also like this industry.
Everyone up and down here says that P2P is good.
Nowadays, mass entrepreneurship and innovation are in full swing, and the preferred field of entrepreneurship is Internet finance.
Last year alone, more than a thousand new platforms were added, with three to five new platforms opening every day.
Even if they face state supervision and rectification in the future, they won’t all be beaten to death with a stick.
Taking a step back, even if a group of companies are eliminated due to rectification in the future, eight out of ten companies will still be left.
Among these eight companies, we, Yimin Wangjin, are definitely indispensable."
Fan Hongyang feels that Zhang Yida is too unfounded. Although there are voices in society saying that P2P should be included in supervision, mainstream voices still agree more than they oppose.
"I have said before that when we are doing finance, we must always maintain a sense of awe. Awe of financial risks, awe of legal risks...awe of policies.
Look, how many P2P companies have been liquidated in 2014?
I wish the country would take action to regulate now, so that the industry can be saved.
In a few years, the risk will fully erupt, and even gods will be unable to save it.”
Zhang Yida was a little angry, so he simply said what was in his heart. Now everyone in the company maintains this optimism, and they must be poured cold water on them to sober up.
"No...no way! Mr. Zhang, you are so pessimistic about the future development of the industry. Then why do you want to start a P2P company?"
Fan Hongyang is also thinking about Zhang Yida's words. He feels that some companies are ruining the reputation of the industry, but generally they are operating in compliance with the law.
“When I founded Yimin, I mainly focused on accumulating strength domestically in the early stage. After Yimin Wangjin went public, we shifted our development focus overseas.
Of course, we also have to stabilize the domestic market. As long as asset quality is controllable, the bigger the market, the better.
After we have sufficient total assets and revenue, we will get a consumer finance license.
In my mind, Yimin in the future must be a global Internet financial company."
Zhang Yida looked straight at Fan Hongyang, whose mouth was so wide that it could fit a fist into his mouth.
"Mr. Zhang...you mean to take the licensed consumption route domestically and the P2P route abroad?"
Fan Hongyang calmed down and began to ask.
"Yes, this is the only way to go in the country. Those with license plates are the regular army, and the no-names will only be eliminated.
In addition, if you go abroad, you can choose P2P, consumer installment, or consumer credit, depending on local conditions."
Zhang Yida knew very well which routes were correct and which routes were wrong.
He just wants Yimin Wangjin to take the right path and avoid the tragedy that happened to his P2P peers in the previous life.
"Well, it would be great to have a consumer license. Then do we need to vigorously develop our existing P2P business?"
Fan Hongyang was persuaded by Zhang Yida. After all, Yimin Wangjin was running naked without a license. The state did not directly say whether to supervise or not to supervise, and the attitude was rather ambiguous.
If the country wants to take action in the future, what will happen? It’s hard to say!
The transformation of licensed consumer finance is also a retreat for Yimin Online Finance.
"We need to develop! How can we not develop? I predict that this year and the next three years will be relatively easy to develop.
After 17 years, we are not sure what the future will be like.
Therefore, in the past three years, we have to strengthen our strength domestically on the one hand, and layout overseas markets on the other hand.
If the domestic market fails in the future, we will go overseas. There is no way out."
Zhang Yida said with a smile that no matter what happens in the future, Yimin is sure to win.
"Well, is the introduction of institutional funds also an advance plan for the transformation of consumer finance?"
Fan Hongyang somewhat understood Zhang Yida's approach and thought to himself, how can he be so cunning at such a young age?
“Yes, there are several advantages to introducing institutional funds.
First, the funding channels are diversified and can walk on many legs. Even if P2P fails, there will still be money for lending.
Second, establish good cooperative relationships with various banks and trusts. Dealing with them is indispensable when transforming into consumer finance.
Third, we need to maximize our business and increase our revenue and total assets. Otherwise, we won’t be able to reach the sponsoring shareholder threshold of 60 billion yuan in total assets.”
"Um... 60 billion? There is indeed a long way to go. At least it needs to grow 20 times on the current basis."
Fan Hongyang smiled bitterly.
"There is a way! Split + merge, if necessary, all the companies under Yimin Holdings can be reunited.
If you still can't meet the conditions, let Rui Xiang come.
But in the future, whether Rui Xiang takes the lead or Yimin takes the lead depends on the efforts of the few of you."
Zhang Yida actually prefers Yimin to take the lead. The direction of future development is science and technology, and Yimin has stronger financial attributes.
"Hehe... Let us work hard to benefit the people! Ruixiang is focused on high technology and is committed to benefiting all mankind.
We are good at things like lending money. Leave all the dirty work to us!"
Fan Hongyang rubbed his hands and said in a flattering manner with a smile.
“It’s no problem for you, but you must meet the shareholder threshold for setting up a consumer finance company.
Otherwise, there is nothing I can do."
Zhang Yida spread his hands and said.
"It can definitely be achieved, there will be no problem."
Fan Hongyang began to dream about how he would kill everyone after getting a consumer finance license.
“P2P has unlimited leverage, consumer finance has 10 times leverage, and online small loans have 2-3 times leverage.
After all, the most enjoyable thing is P2P!”
Fan Hongyang began to pray in his heart: P2P, you have to be strong! How can I live without you!
“Theoretically unlimited leverage, but don’t you prepare risk reserves?
Moreover, the capital cost is different. The P2P capital cost is as low as 11 or 12 points, and as high as 14 or 5 points.
When it comes to spending money, although you can't attract savings, in addition to your own funds and shareholder deposits, you can also borrow money from banks, issue financial bonds, and issue ABS. The cost of funds is only seven or eight points.
What does this mean? We can carry out dimensionality reduction attacks on grassroots Internet financial companies.
We can only be high-quality customers with annualized interest rates of 24% or lower, thereby reducing bad debts and reducing social negative effects.
The best customers belong to banks, and the inferior customers belong to consumer finance. P2P can only be the inferior among inferior customers.
If there is a "subprime mortgage crisis", think about it yourself!"
Zhang Yida thought of the P2P thunderstorm in his previous life. Although part of the reason was that bad money drove out good money, the bigger reason was that there was a problem with business logic.
With a capital cost of more than ten points or even higher, what is the lending interest rate? Thirty or forty?
Who can lend money at such a high interest rate?
The customers who come to borrow this kind of money are basically people with no social security or provident fund.
Then everyone is preaching about "consumption upgrade". Come on, just borrow some money and spend it on eating, drinking and having fun.
There is no guarantee of the source of repayment. Even if you can repay it, you will have to tear down the east wall to pay for the west wall. In the end, you will be in debt and then go to the rooftop...
Fan Hongyang is also thinking that if he borrows so much money, if he encounters a slowdown in economic growth, a trade war, a wave of unemployment, etc., the scene will be too scary to imagine.
That's how it is in finance! Crisis is everywhere.
"Mr. Zhang, what are the chances that the state will strictly supervise P2P?"
Fan Hongyang began to believe Zhang Yida's words. The development in the past two years had been so smooth that he was indeed a little too excited.
"99%! The industry is currently only worth over 200 billion, and it is certain that it will exceed one trillion in a few years.
How could they be allowed to do this on such a large scale?
Moreover, the threshold of this industry is too low. You can buy a set of website templates for tens of thousands of yuan, and you can start it by recruiting a few people.
There are no admission standards. There are no requirements for founding shareholders, and there are no requirements for senior executives to have a financial background.
What kind of words does this sound like? Something will happen sooner or later.
Look at those offline wealth companies. They ask uncles and aunts to go to class every day and take them to travel. Isn’t it just for the little pension they have?"
Zhang Yida was very disgusted with this phenomenon. The more he talked about it, the more excited he became, and he almost started to curse.
"Then what should we do? Report our colleagues?"
Fan Hongyang smiled and shook his head. He felt that Mr. Zhang was still too young.
Zhang Yida opened his mouth but said no more. He was also considered a vested interest in this industry. He jumped out to sing the opposite and poured cold water on him, only to be beaten.
After all, the country has not spoken out, so who are you Zhang Yida?
"Okay, okay, let's not talk about this anymore. Let's take care of our own affairs!
Strictly control risks and treat users with trust."
Zhang Yida said to Fan Hongyang.
"Well, let me try to contact a few banks?"
Fan Hongyang asked.
"Don't look for big banks first, look for rural commercial banks and city commercial banks, and you can get the capital cost within 10%.
In addition, tell them: We promise to cover all bad debts, and if necessary, we can pay a 10%-20% security deposit.
Small banks must be tempted by such generous conditions."
Zhang Yida ordered.
"Okay, let's try it on a small scale first. Once the model works, we can expand the scale."
Fan Hongyang thinks what Zhang Yida said makes sense. He should not set limits on himself and should explore more business boundaries.
"Take good care of yourself! Let's ring the bell in the second half of the year!"
Zhang Yida thought that once Yimin Online Finance is successfully listed and its brand is improved, it will be much easier to cooperate with various banking institutions.
This can be considered one of the benefits of going public!