Chapter 157 Beware of "short-term loans and long-term investment" on August 3

At the start-up stage, (Wantong) used short-term loans at an annual interest rate of nearly 20% for investment. If there is no gross profit of more than 60%, the investment will definitely be a loss.The more you invest, the tighter the money in your pocket, and the tighter it is, the more you will destroy the financial institutions in your hands, and you will borrow from more people and institutions at high interest rates. We generalize ourselves as short-term loans and long-term investment; coincidentally, Delong later called this short-term financing and long-term investment. From 1993 to 1997, it was a period of rapid and diversified expansion in the history of Wantong.At that time, Vantone expanded very fast. It mainly invested in Wuhan SDIC and three credit unions (one each in Tianjin, Nanning, and Lanzhou) through leveraged buyouts and serial holdings; it also invested in Huacheng Finance Company and Tianan Insurance. , Shaanxi Securities, and Minsheng Bank.For a time, Wantong became the most attention-grabbing private enterprise.Subsequently, Vantone also expanded through mutual lending and other means of financial institutions, and invested in many industries such as real estate, commercial retail, and high technology.

In the process of expansion, Wantong's financial burden is increasing day by day.This financial crisis forced them to think about how capable Vantone really is, and how the company should obtain healthy investment and expansion capabilities. Fortunately, Feng Lun understood at that time that borrowed usury loans should never be used for investment, so he began to retreat in great strides, retreating and retreating until there was nothing to sell and nothing to retreat.After retreating, Vantone slowly got through the financial crisis and developed into today's good situation. The only way to solve the "short-term loan and long-term investment" and save yourself is to first sell things to repay the debt, reduce the company's cost, get rid of the burden, and then increase capital and expand shares, introduce capital that does not need to be repaid, and develop equity financing channels. Shares, increase capital to obtain funds, and open up diversified financing channels.