He Shenghua has been feeling happy and worried recently.
Fortunately, the number of registered users of Jingrui Wealth Platform has reached more than 200,000, and the number of users with transaction records has reached 100,000. The transaction volume of the platform has reached 200 million.
The 200 million yuan includes the January bid and the March bid. The total investment amount for the January bid is 150 million, and the March bid is 50 million.
He Shenghua listened to Wang Qihang's suggestion and split the bids. The borrower's one-year and two-year loan claims were split into January bids and March bids and published on the platform.
He used all the 50 million bid in March as house mortgage loan funds, and lent out hundreds of thousands and millions in one lump sum.
Only 50 million of the 150 million bid in January was used and was issued as a short-term bridge loan.
As for the remaining 100 million, it will naturally be used to deal with the maturity payment of customer targets next month.
A total of 150 million yuan is due next month. Why did he only prepare 100 million yuan?
Because as long as users invest more than 50 million next month, they can use it to pay off their due debt first.
As for if user investment does not reach 50 million next month, there will be a gap in funds and the problem will be troublesome.
However, He Shenghua didn't think so much. Judging from the current situation, the investment amount in the first month was 200 million, and no matter how different it was in the second month, it was still 50 million.
What worries He Shenghua the most is the issue of advertising fees. In the first month, he spent three installments of advertising cooperation fees, with a total amount of 11 million.
When Jingrui Wealth was founded, it invested 20 million yuan. The initial office rent, R&D investment, and employee salary costs totaled more than 3 million yuan. In addition to the 11 million advertising fees spent this month, the company's liquidity
It is already less than 6 million yuan.
It’s not just expenses but no income. The 50 million housing mortgage loans and 50 million bridge loans issued through Jingrui Loan Company this month have already recognized 19 million interest income.
Among them, the interest rate for a 50 million house mortgage is 2 cents per month, 24% annualized, half for one year and half for two years, and the interest income is 6 million and 12 million respectively.
A total of RMB 18 million in interest income will be paid by the borrower on a monthly basis in the next 12 and 24 months, and the loan principal will be repaid in one go after maturity.
This is a loan method where interest is paid monthly and the principal is repaid upon maturity.
It is precisely because of this repayment method that although the income is confirmed, it cannot be paid in one go. It will take 1-2 years to complete the payment.
The interest income in this first month was only 1 million.
The other 50 million bridge loans are issued at a daily interest rate of 0.1%/day, which is also 10%, and the borrowing period ranges from 7 to 30 days.
The interest income is about 1 million. This part of the short-term interest income is gradually recovered along with the 50 million loan principal.
All in all, the total income in this first month was 2 million yuan.
The expenditure is more than 14 million yuan, and the income is more than 2 million yuan.
The company's cash flow is very tight.
He Shenghua had a headache when he thought about these things. He called the operations director Wang Qihang and the financial director to the office, told them about the company's financial and operational status, and asked to discuss solutions.
Wang Qihang looked thoughtful, thought for a while, and said to He Shenghua:
"Mr. He, the difficulty is only temporary. As long as there is no problem with the capital side of Jingrui Wealth and user investment is higher month by month, there will be no problem with the capital chain,"
He Shenghua nodded and looked at the financial director.
The financial director is an ordinary-looking woman in her thirties named Xiang Li.
He used to be responsible for internal audit work in a bank, and was later hired by He Shenghua to join Jingrui Loan Company with a high salary.
He has worked under He Shenghua for eight or nine years and is one of his confidants.
Although Jingrui Fortune, an important subsidiary of the group, has only just been founded, He Shenghua has already invested a lot of resources and money, and finance is a very critical department, so he transferred one of his most trusted subordinates, Xiang Li, to take charge of the management.
Financial management of the entire company.
Xiang Li frowned. She was a cautious person, especially a financial worker. She was very averse and alert to risks.
The company's current financial situation and capital flow already make her feel very dangerous. It's like walking on a tightrope. If you are not careful, you will fall into an abyss.
Xiang Li sighed and said seriously:
"Mr. He, the current financial situation of our company is not optimistic, or it is very dangerous, and the capital chain is very tight.
My suggestion is to temporarily stop advertising, and then consider resuming advertising after the company's financial situation returns to a safe level."
He Shenghua pinched the agate string in his hand and lowered his head to think.
After thinking about it for half a minute, he looked up at Wang Qihang and asked:
"Qihang, if we suspend advertising now, how much impact will it have on our company's operations?"
Wang Qihang adjusted the glasses on his nose and said:
“Let’s talk about transaction volume first! Our platform reached a transaction volume of 200 million in the first month after it was launched. This achievement can be regarded as the best among thousands of platforms in the industry.
The popularity of our platform and brand exposure increased all of a sudden.
If advertising is suspended, this upward momentum will definitely be interrupted.
Users may think that our platform has gone downhill, or that our background is not strong. This will lead to the loss of users.
In the second and third months, the transaction volume may drop to 100 million or 50 million.
If this downward trend occurs, many users may think that our platform is failing and accelerate the flight of funds.
It’s the same as the stock market, investors buy up and not down.”
After speaking here, there was a pause, and then Wang Qihang's face became serious. He looked at He Shenghua and said:
“Moreover, we still have 50 million user funds that need to be redeemed upon maturity in three months.
We have currently lent this part of the funds on a one-year and two-year terms. This part of the principal cannot be recovered after three months, but only 3 million in interest.
What should I do if the three-month target invested by the user expires?
The funds of latecomers and the funds invested by later users will be used to take over this part of the claims first, allowing users who have expired to pay them normally.
However, once the transaction volume of our platform declines and the new investment funds are insufficient, we will not be able to pay out the 50 million funds.
This is also a negative consequence of deadline mismatch!
When the platform goes uphill, you don't see any impact, but when the transaction volume drops, it will be fatal.
If the user’s funds cannot be paid, the result will be liquidation and elimination!”
After hearing this, He Shenghua took a breath. The consequences of this are too serious. User funds cannot be redeemed, and the platform boss is afraid that everyone will get involved.
He Shenghua was a little afraid to think about the consequences of this liquidation, and quickly asked:
“If we don’t stop advertising, how long will it take for our platform to have positive cash flow?”
Wang Qihang picked up the pen and paper on the table and began to calculate. After a while, he said:
"If our platform maintains its current upward momentum, it is expected that the transaction volume will increase by 10% month-on-month.
The transaction volume in the second month was 220 million.
The turnover in the third month was 242 million.
…
The transaction volume in June was 322 million.
In 6 months our total transaction volume will exceed 1.5 billion.
Calculated based on the current monthly loan interest income, the monthly income in 6 months can reach 15 million, and the cumulative income in half a year is about 50 million.
Taking the sixth month as an example, the user investment income of that month was 3.2 million, advertising expenditure was 10 million, and staff salary was more than 1 million. It can basically reach breakeven.
From the 7th month onwards, the cash flow started to be positive and a certain amount of profit was generated.”
He Shenghua's eyes lit up, thinking that it would be great if the company started to make profits in half a year.
Thinking of this, I feel like a stone has finally been lifted from my heart.
Xiang Li took the list made by Wang Qihang from the table, looked at it, and said:
"Director Wang, this is wrong! Your list did not take into account the bad debts generated by the company's loans and the salaries of the staff at Jingrui Loan!"
Wang Qihang reacted, patted his head, and then said with a smile:
"Yes, thank you, Mr. Xiang, for reminding me! I almost forgot about this!"
He Shenghua waved his hand and said:
"It's okay, just settle the accounts of Jingrui Wealth's operations clearly.
The bad debts are all mortgage loans, and some losses can be recovered after the assets are disposed of. After calculation, there are not many bad debts that need to be advanced and written off.
Jingrui Loan has recently added a sales team of fifty or sixty people. We can still afford it with our old business. We don’t have to worry about this."
Speaking of this, He Shenghua rubbed his face and asked:
"Then we won't be able to generate profits until 6 months later. Don't we have to invest 60 million in advertising fees in the early stage?"
Wang Qihang shook his head and said:
"It costs 10 million in advertising fees every month, but now we have income, which can offset part of it.
This month’s income is 2 million, and we can add another 8 million.
Next month's income will be more than 4 million, and it will be enough to supplement it with more than 5 million.
In this way, as the monthly income increases, the gap that we need to fill will become smaller and smaller, until the company starts to generate its own blood after 6 months, and there is no need to invest anymore.”
He Shenghua nodded and said:
"Then how much more money is expected to be invested in total?"
Wang Qihang touched his nose and then said:
"At least 20 million more are needed! With these 20 million, plus our income of 50 million in the next six months, it will almost be enough to pay for advertising, staff salaries, and user interest income in the next six months!"
He Shenghua frowned and then said:
"Okay, I understand! You go ahead and do your work! Let me think about it!"
Wang Qihang said hello and turned around and left the office.
Xiang Li hadn't left yet. After struggling deeply in her heart, she still couldn't help but said:
"Mr. He, my suggestion is to take it slow!
The company has just invested 20 million, and now investing another 20 million, I think the risk is still too high.
What Wang Qihang said is that the company's performance will increase by 10% year-on-year every month, and then it can start making profits in 6 months.
What if the growth does not reach 10%? Or there is a decline in performance?
It doesn't take eight, nine months, or even a year to break even.
During this period, you still have to invest money into this bottomless pit until the company starts to make full profits.
You have to think about this matter carefully. If there is no turning back, it will put a lot of financial pressure on you.
Moreover, as the monthly loan scale increases, Jingrui Loan Company has to expand its sales team. Currently, it can barely support the new team of dozens of people by relying on its old business.
If it expands to 100 or 200 people in the future, then Jingrui Loan Company will not be able to cover its own profits and losses. You will still have to give blood."
He Shenghua's face looked a little ugly. Xiang Li's words were like a sledgehammer hitting his chest. He was still too optimistic.
He nodded to show that he understood and let Xiang Li go out first. He Shenghua sat alone on the large leather swivel chair and began to analyze.
At least 20 million is required!
Jingrui Loan Company still has more than 10 million in working capital, but it cannot withdraw too much of that money. The maximum withdrawal is 5 million. If too much is withdrawn, it will affect the normal operation of the company.
The family's savings last time were 20 million, and only 2 million was left to start the Jingrui Wealth Company. It cannot be touched, as it is for the daily expenses of my wife and daughter.
If it really doesn't work, then the only option is to mortgage a few houses or sell a few houses.
I own 6 fully-paid houses and keep one to live in. The other 5 houses can be sold or mortgaged.
House prices in Beijing have risen so sharply, so it’s better to take out a mortgage first! Selling a house is something you really don’t want to do, and you’ll do it only as a last resort.
The current houses in Beijing are about 40,000 square meters, and my five houses are more than 500 square meters, and the market value should be around 20 million.
With a 70% mortgage, it should be no problem to get 15 million. In addition, the loan subsidiary will take 5 million, and 20 million will be enough to scrape together.
A few days ago, Xu Zhiyun pretended to call me to inquire about the operation of Jingrui Wealth. I almost bit my tongue when I heard that I had a turnover of 200 million in the first month of going online.
My own Jingrui Fortune has only been in operation for one month, but its transaction volume has already caught up with Huaxin Investment, which was in operation for half a year.
Thinking that after I told Xu Zhiyun the 200 million turnover figure, his tone on the phone changed and everyone became confused.
Thinking of this, He Shenghua couldn't help laughing.
The advertising money was well spent, and within a month it had caught up with Huaxin, which had started first.
Go ahead! Spend another 20 million. This time I want Jingrui Fortune to shock the entire industry and appear on the center stage as a dark horse.
Either don’t do it, or do it the best way you can.
Xu Shenghua showed off the same fierceness that he had when he started a business and opened a loan company when he was young. At that time, he had nothing, and he only managed to get into the big scene today by daring to fight hard.
Now that I am middle-aged and starting my second business, I still have the energy to refuse to admit defeat.
He Shenghua made up his mind and quickly gathered the 20 million to make another bet.
lose?
If you lose, the big deal is that the company will be shut down and you’ll have to start over!
Anyway, he has a car and a house, and his children are grown. In the worst case, he can still ensure basic food and clothing for the family.