What Are the Different Financial Services for the Poor?

Emergency finance mainly refers to emergency financial plans that pawn shops respond quickly when faced with unexpected situations. For individuals, it refers to the general public in order to cope with emergencies (such as natural disasters, disasters, old age, sickness and death) and urgently needs funds to seek the services of pawn shops; for enterprises, it refers to the emergencies and funding gaps of enterprises, pawn shops quickly In response, a professional team provides financing solutions to help enterprises with turnover operations and effectively revitalize the capital chain and production chain.

Emergency finance

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Emergency finance mainly refers to emergency financial plans that pawn shops respond quickly when faced with unexpected situations. For individuals, it refers to the general public in order to cope with emergencies (such as natural disasters, disasters, old age, sickness and death) and urgently needs funds to seek the services of pawn shops; for enterprises, it refers to the emergencies and funding gaps of enterprises, pawn shops quickly In response, a professional team provides financing solutions to help enterprises with turnover operations and effectively revitalize the capital and production chains.

Chinese name

Emergency finance

Types of

Emergency financial plan

aims

Coping with emergencies

Purpose

Help business turnaround operations, etc.

Small and micro enterprises are collectively referred to as small enterprises, micro-enterprises, home-based enterprises, and individual industrial and commercial households. They were proposed by Professor Lang Xianping, China's chief economist. The difficulty of financing small and micro enterprises has always been a "sick disease" of the financial system. ^[1]

How to help companies overcome the difficulty of financing? In response to the current market situation, as the pioneer of emergency finance, Yanxi Tuohai Pawn first put forward the concept of emergency finance in China ^[3]

Compared with large enterprises with stable income and profitability and large loan scales, small and micro enterprises have weak bargaining power due to unstable profitability, poor risk resistance, and lack of collateral. Bank loans often use asset credit and moral credit to set qualification conditions, deposit and loan, etc .; usually only accept pledge of rights, can not meet the financing needs of individuals to exchange money for goods; bank loans are often limited to use, and the procedures are complex, and emergency response Types or acute financing needs also have strong regional restrictions, and customers have many obstacles to financing in other places, which is often difficult to achieve.

The pawnshop's emergency financial service products only pay attention to the legality and value of the pawn subject held by the pawnbroker. It accepts both movable property pledges and rights pledges, which fully meets the financing needs of individuals in exchange for money. Convenient and fast, and the regional restrictions are not strong. It is most suitable for emergency or emergency financing requirements. Among them, real estate, automobiles, folk goods (gold, watches, luxury goods, art, etc.), industrial raw materials, etc. can all be taken as pawns, solving the confusion and difficulty of small and micro enterprises lacking collateral.

People's demand for capital diversification will inevitably bring about diversification and multi-channels of financing. The service of pawn shops is no longer the patent of the poor. As a new emergency financing method for companies, pawn shops are called "second banks" and "emergency small banks". Pawn shops are an emergency light for ordinary people, a gas station for investors, and a middle-class safe. Business owners can seek the services of a pawnshop when they urgently need funds. ^[4]

(1) Investment-type pawns. The purpose of on-site financing is to engage in production or management, such as using business money. This type of household is usually an individual owner, some small and medium enterprises. They often use idle materials, equipment, etc. to take a certain amount of funds from the pawnshop, and then invest it in production or business. They can use the time difference between investment and financing to obtain obvious economic benefits. It is used in enterprises, mainly in production and manufacturing. The main purpose of financing is to meet temporary production orders, and it is urgent to purchase equipment and raw materials. ^[5]

(2) Emergency pawns. The purpose of household financing is to deal with emergencies, such as natural disasters, man-made disasters, old age, sickness and death. The majority of these households are the general public.

(3) Consumption-type pawns. The purpose of household financing is neither for emergency nor to make money, but purely to meet certain living expenses, such as travel expenses for travel pawns and pocket money for travel pawns.