"Mr. Zhang, the two online small loan companies owned by Ruixiang both have registered capitals of 900 million yuan.
According to the new regulations on online small loans, the leverage ratio of each province is different, ranging from 0.5 times to 3 times.
The lowest in the Magic City area is only 0.5 times; the highest in Qiong Province is 3 times the leverage ratio.
I first need to know the registration areas of Ruixiang's two online small loan licenses before I can give you an approximate amount."
Zhou Lixin, the vice president of Beijing Rural Commercial Bank, was sitting in Ruixiang's conference room and chatting with Zhang Yida about cooperation matters.
“Yes, the regulations for online small loans are quite strict, and the leverage ratio must be clarified.
If Mr. Zhang is still short of funds, he can ask ICBC to issue bonds."
The speaker was Vice President Cui of the Beijing Branch of the Industrial and Commercial Bank of China. Ruixiang’s fund storage, transfer and other services are basically completed through the Industrial and Commercial Bank of China.
The cooperative relationship between them has always been good, so for this online small loan financing, Zhang Yida also invited people from ICBC.
Hong Haibo, general manager of the consumer finance and wealth management division sitting next to Zhang Yida, replied:
"Ruixiang has two online small loan subsidiaries, one is called Yuzhou Ruixiang Xincheng Online Small Loan Company, and the other is called Qiongsu Ruixiang Small and Micro Loan Co., Ltd.
Yuzhou’s leverage ratio is 2.3 times, while Qiong Province’s is 3 times.”
Zhang Yida nodded. This was what he had specially arranged before. He specifically found two online small loan licenses to acquire from areas with high leverage ratios.
"Oh... that area was well chosen, and the leverage ratio is relatively high. Let's look at this company in Yuzhou, let's lend money, multiply 900 million by 2.3 times, which is 2.07 billion.
As for the one in Qiong Province, how about handing it over to ICBC?"
Zhou Lixin glanced at ICBC's President Cui, and compared his strength, it was true that Beijing Rural Commercial Bank was far behind him.
"Haha... We, ICBC, don't mind. The loans from the two online small loans are all handed over to us, and we can afford it."
Ruixiang is a major customer of the Beijing branch where President Cui works. His financial situation has always been very good, but he still has billions in his bank account.
Therefore, President Cui is willing to borrow money from high-quality customers.
"Old Cui, you are a bit rude. Mr. Zhang called two of our banks over today to make it clear that one bank is responsible for borrowing money from one company.
You put 2.7 billion over there, and I put 2.07 billion over here, isn’t that good?”
Zhou Lixin, the vice president, has a much harder job than President Cui. After all, he is just a rural commercial bank, while the other party is the largest bank in the world.
Good customers, high-quality corporate customers, and individual customers all go to the four major banks of China Agricultural and Industrial Construction.
It's hard to find a high-quality loan customer like Zhang Yida, so of course I have to grab it firmly.
"Two presidents, there is no rush on this matter. First of all, Rui wants to borrow 4.77 billion from two online small loan companies. This is clear.
As for which bank to borrow from? We also have to consider the cost of funds.
After all, running a business requires a cost for everything.”
Zhang Yida said with a smile. Before he even opened his mouth, the two bank presidents were almost quarreling.
"How long do you need to borrow? Our ICBC short-term benchmark interest rate within one year is 4.35%, and the medium- and long-term benchmark interest rate between 1 and 5 years is 4.75%.
For loans to large groups like Ruixiang, we can provide a base interest rate without any increase.
As far as I know, if rural commercial banks want to borrow money, they have to raise the base interest rate by at least 50%."
President Cui glanced at Zhou Lixin. The latter buried his head and said nothing. He must have been poked in a sore spot!
Zhang Yida glanced at Zhou Lixin and guessed that the Rural Commercial Bank's deposit interest rate was higher than that of ICBC, which resulted in higher capital costs. He probably wouldn't make much money by lending to Ruixiang at the base interest rate.
"Let's do this! We, Jingnong Commercial Bank, will give us whatever interest rate ICBC gives Ruixiang."
After struggling with his confidence, Zhou Li felt that he still had to do this loan business. After all, the amount was large, and the repayment was taken care of by a large group like Ruixiang, so it was okay to earn a two-point interest rate difference.
"Well, Ruixiang, let's borrow for one year first! According to the interest rate of 4.35%, we will borrow 2.07 billion from Beijing Rural Commercial Bank and 2.7 billion from ICBC.
Ruixiang Group provides unlimited guarantee liability for these two loans."
Zhang Yida knew that to borrow so much money, he would either have to use assets as collateral or use the group to increase credit.
The two online small loan subsidiaries are both wholly-owned by the group, so it doesn't hurt to provide a guarantee.
"Okay, then it's settled! Then we will arrange for the audit report and various reviews.
We will complete all business processes as quickly as possible and get the money approved as soon as possible.”
Seeing that Zhang Yida had made the decision, President Cui replied very readily.
"Well, we in Jingnong Commercial will also seize the time and give Ruixiang the green light."
When Zhou Lixin saw Zhang Yida agreeing to borrow money from him, he was in a very beautiful mood and said with a smile.
"There is no need to rush for funds, and the payment does not need to be received all at once. Let's use it as a credit limit! We will withdraw part of it every month or even every day."
Zhang Yida would not be stupid enough to take out a loan of more than 4 billion in one go, and he could not lend it all out in one day.
Just put it aside, the daily interest is five to six hundred thousand, which is an unnecessary cost.
Ruixiang's own capital of 1.8 billion is basically bottoming out, because after the New Year, Ruixiang opened a batch of credit lines to all users.
Up to now, Ruixiang has granted credit to 500,000 people, with a total credit grant of more than 3 billion.
Although some users have not used the credit limit or have not used it all, the monthly loan amount has reached more than 1 billion yuan.
This is still the situation after Zhang Yida required strict control of asset quality.
Hong Haibo has always been more cautious. Although the Touronghui wallet and Touronghui IOU models have basically been implemented, the credit limit for users is still being liberalized little by little.
Ruixiang has 300 million users, but only 500,000 have borrowing and credit payment limits, which is equivalent to 1 in 600.
Zhang Yida's chicken thief once again refreshed the two presidents' impressions of him, but they didn't say much.
After all, the loan has been approved, but it is not a one-time one. Maybe 30 million will be withdrawn today and 50 million will be withdrawn every day.
Just start accruing interest based on the actual borrowing date of each loan. The bank has an internal system and the operation is not troublesome.
After the two bank presidents left, Zhang Yida looked at Hong Haibo and asked, "Your business is growing very fast! Has your loan amount exceeded 1 billion yuan in a single month?"
"I also have to thank the brothers of Mobao Pay. They have been very aggressive in promoting offline, and the business growth of Touronghui Wallet has been driven very quickly."
Hong Haibo did not take any credit or boast, but instead praised the magic treasure payment.
"The growth rate of the credit payment products business is very good? How is the asset quality?"
Last year, Touronghui pioneered the offline credit consumption limit - Touronghui Wallet, which is somewhat similar to "Huabei", but due to the lack of online application scenarios, it cannot be used for e-commerce shopping.
In the past, you could use it to pay taxi fares, but because Didi stopped cooperation, the online payment scenario was also cut off.
The main usage scenarios are still offline, and can be used in offline supermarkets and convenience stores that Mobao Pay cooperates with.
If you spend money this month, your bills will be accumulated until next month.
Because Huabei has a one-month interest-free period, Ruixiang has also set up a one-month interest-free period in order to make more users like and use it.
If it is not paid off after one month, you can also choose to repay it in installments, and interest will be charged on this installment.
Or it’s not called interest, it’s called installment fee, or interest with a different name.
Leech Financial Services also works this way. It sounds like it doesn’t require interest, but it’s actually the same truth.
"Yes, I log in to the backend every day to check the data. Many users have set Touronghui wallet as the first payment method, followed by account balance and change treasure.
However, the amount in supermarkets and convenience stores is still too small, and some users complained that there are too few usage scenarios.
We have already arranged to negotiate cooperation with large supermarkets such as Wal-Mart and Carrefour, as well as home appliance chains such as Gome and Suning.
After the cooperation is concluded, I believe that the business of Touronghui Wallet will reach a new level.
Asset quality is still very stable, and has not collapsed with the increase in the number of credit recipients and the credit limit, and has remained at the 0.7%-0.8% line."
Hong Haibo said confidently that among the five major business groups of the entire group, in terms of business growth rate, the consumer finance and wealth business groups are among the best.
The content advertising business group is getting old. Although it is large, its business growth has slowed down.
The mobile service business group operates several independent apps and has basically encountered bottlenecks.
The cutting-edge technology business group has been burning money for research and development, and only the cloud computing project has been implemented. Except for the financial cloud, other revenue is almost non-existent.
The Open Technology Business Group is pretty good. Mobao Payment, Mung Bean Credit, and Tiance Technology are all growing very fast, so it can compete with the Consumer Finance and Wealth Business Group for the top spot in business growth.
“We have already lent 1 billion yuan in loans in a single month, and it will at least double to 2 billion by the end of the year!
Then the total amount of loans this year will reach at least 15 billion to 18 billion.
The two online small loans have 1.8 billion of their own funds, and including bank loans, the total is only 6.57 billion.
Calculated based on the average loan period of 6 months, the funds are rolled over twice a year, and 13 billion can be released if the loan is exhausted.
This money is still not enough! What do you think of us issuing an ABS bond?"
Zhang Yida first calculated the accounts, and after arriving at the total annual loan amount, he asked Dao Hong Haibo.
"Hmm... I think it's okay. But the application period is quite long. It seems that Ali Small Loan took 5 months to apply before it was approved for issuance.
There are quite a lot of various audit procedures. If we want to issue bonds, I think we have to start applying almost now.
Otherwise, we may not be able to make enough time, and we will have to slow down our business growth in the second half of the year.”
Hong Haibo suggested.
"Then go ahead and set up a bond issuance group and start arranging related matters."
It is impossible to slow down the business growth rate. Once it slows down, valuation and financing will become difficult.
The huge amount of financing that Ruixiang has raised along the way is all based on the rapid growth of its business. If the business growth slows down, the expectations of venture capital will be greatly reduced.
"By the way, Mr. Zhang, Touronghui IOU and Touronghui wallet, these two names don't seem very catchy.
You can see that the names of "Huabei", "Jiebei", "Gold Bar" and "Baitiao" are short and easy to remember, and can easily enhance the user's brand impression.
I suggest that we also change the brand name to something shorter and easier to remember."
Zhang Yida scratched his head and thought, there is nothing I can do! All the good names have been registered.
Could it be called "usury money"?
"How about calling it "Yongbei" and "Loanbei"?"
Hong Haibo suggested with a smile. Looking at him like that, Zhang Yida might have thought about it a long time ago.
"It's up to you! Just change it if you think it works better."
Zhang Yida muttered "yong bei" and "loan bei" several times and thought it was okay, so he simply let it go.