"By the way, the industry you are talking about will eventually become a gangster, so what's going on?" Zhang Chen asked Xiaofang.

"It's very simple. Let's see how the money is spent first." Xiaofang said, "It's too easy for you to borrow money from these platforms now. As long as you have a business license, companies can borrow several sums of money from different platforms. With an ID card, individuals can do the same. The borrower's borrowing information on all these platforms is not included in the central bank's credit reporting system.

"If you apply for a loan at a bank, the bank only needs to check the credit report of your company or individual, how many loans do you have, which banks you have borrowed from, including corporate legal persons, whether the individual has loans, how many credit cards are there in total, etc., which are clear at a glance.

"If you have a lot of loans, which has exceeded the current scale of your company and there are many banks involved, the banks will be alert. They will feel that your funds are abnormal. Moreover, you need funds, why not in the same bank, and increase the credit scale. Generally speaking, if your company is well-managed, the bank will continue to increase the loan amount for you.

"At the same time, including whether your loan has been overdue, whether there has been any interest arrears, repayment records of legal person credit cards, etc., it is all on it. As long as there is a bad record in the credit report, no bank will lend you money again.

"I said before that the risk control of these platforms is equal to a blank, and it is not included in the credit reporting system management, which means that even if the borrower does not repay their money, it will not affect the credit reporting of enterprises and individuals. In this case, their money will not be left alone, and all the money will be gone but not returned in the end.

"Combined with the high interest rate, it will weaken the borrower's repayment ability and further expand the risk.

"What should I do if I can't pay back the money? If you owe a credit card, the bank can call the police or at least go to court to sue you. The same is true for your company to owe a loan. The bank can sue you and enforce your mortgage or the assets of you and the guarantor. In this regard, at least the early guarantee measures are implemented.

"And these platforms have basically no guarantee measures, and they can't even sue you. Even if they sue, they can't win."

"Why is this?" Zhang Chen didn't understand, "Why can't he even sue you?"

"The money he gives you is not his own. If it is his own money, he will be suspected of illegal fundraising, which is their own funds. Because they do not have a financial license, they cannot engage in financial business. It cannot be said that if they lend their own money directly to you, they want to lend you money, and they can only use the bank to entrust loans.

"By the way, although it is common for enterprises to borrow money from each other in actual business activities, this is actually not allowed by law. It is not allowed to borrow funds between enterprises, and interest is not allowed. Therefore, in accounting, such money can only be recorded for receivable payments, but if the receivable payments are not returned for a certain period of time, it is also illegal.

"In name, he can only say that all these online lending platforms play a role in information transmission. When implemented on the contract, it is point-to-point, and my money is lent to you. Although it is actually my money, it first arrives at the platform, or the platform helps me split it and lend it out. I give 10,000 yuan. The platform lent the money to three or four people. When implemented on the contract, it is the contract between me and you or those three or four people.

"Then the problem arises. You owe money but have not paid it back. How can the platform sue you? You have no loan relationship with the platform. You just have to sue it, and I will sue it. In the contract, I am the lender, but in fact, how can I sue it? I have to sue several people for 10,000 yuan. I ask a lawyer to pay the litigation fees, and the fees for the transaction are not enough, right?

"It goes without saying that there are other losses in it, such as whether excessive interest is protected by law and the issue of delisting interest. If the borrower borrows one thousand yuan from these platforms, the actual amount of money may be nine hundred yuan. The interest and other expenses are deducted first, but in law, these are not recognized.

"The so-called interest is only one way to calculate legally, that is, after you use the principal, interest will be generated. So when you go to court, the borrower's loan can only be calculated at 900, not 1,000. In this way, as long as I sue together, my losses will arise. Moreover, as I said earlier, there is no way to sue at all, and it is too difficult.

"Then I am a lender. What should I do if I want to get my principal back? There is still a way. Many platforms mistakenly think that they can escape the responsibility of repayment, but they can't escape it.

"As long as my money is not directly transferred to you, but to the platform account, I can sue the platform. Even if I don't have a contract with the platform, I can sue it as unjust enrichment. I have the right to get the money back, and the platform cannot escape this responsibility.

"What's more, as long as there are too many such things, the public security will intervene and investigate the platform directly according to disguised illegal fundraising. The reason is that your platform is already self-financing. Therefore, at this time, the platform has only two ways. One is to find a way to repay this part of the money, not to explode, and the other is to run away.

"The platform that doesn't want to run away and has no money to repay, so it's impossible for him to sue the borrower. What should I do? The simplest and lowest cost method is to provide private relief, that is, to use the means of underworld to ask for money. Therefore, the entire industry will eventually become an inevitable result.

"On the other hand, as long as you start to crack down on the underworld, these platforms will have a large number of bad debts. Now even the credit card debt-taking companies entrusted by banks have a tendency to become underworld, let alone them."

Zhang Chen nodded. He felt that what Xiaofang said made sense, but he still had a question in his mind, and he said:

"But when I was having dinner, the companies in Hangzhou had money to entrust Mr. Huang and his platform to release it. I didn't hear them say that such a thing happened."

"It's not time. In another year or two, these problems will explode in a concentrated manner." Xiaofang said, "From last year to this year, how many such platforms have appeared? Those borrowers are borrowing money from different platforms. You don't know at all. As I said before, these are not included in credit reporting, and no one knows the actual situation."

"You mean that their repayment was actually borrowed from other platforms?" Zhang Chen asked.

"Yes, to be precise, it's a turnaround. He owes this platform two thousand. When the repayment date, he borrows two thousand from other platforms to repay it. You think he has a good reputation. He will borrow two thousand five thousand or three thousand from you tomorrow. That's it. A borrower, who operates several dozen platforms at the same time, vacates funds between these platforms, and snowballs of his debts grow bigger and bigger.

"But there will always be a day when people can't go away. As long as there are a group of people who can't go away, the money they owe to all the platforms will become bad debts. These borrowers can be said to have connected all the platforms together through their debts. As long as these people can't go away, the risks of the entire industry will come. As long as the p2p thunder explodes, it will be a series of explosions.

"Someone has been giving the regulator a ecstasy, saying that the risk of micro-loans is low. Who said that the risk of micro-loans is low? If a person needs to borrow even two thousand, do you think it is easy for him to repay two thousand? The risk is actually the same as owing 200,000 and 2 million. I see the current situation of Internet finance in our country. Do you know what I think of?"

Xiaofang looked at Zhang Chen and asked. Zhang Chen shook his head and asked back: "What did you think of?"

"I thought of two houses, which was the subprime mortgage crisis that caused the entire Wall Street collapse in 2008. The logic is the same. The two houses sold the house to people who were unable to buy a house. Our current p2p finance loaned a lot of money to people who were unable to repay. If we were not alert, the thunder that broke out would not be smaller than that of two houses."

Xiaofang sighed and said, "Actually, when I was abroad, I have written an article to remind the regulators to pay attention. Unfortunately, no media in China is willing to post it. They think it is inappropriate and the above are still encouraging Internet innovation, so you are pouring cold water? Hong Kong media is willing to post it, but what's the use?"

After hearing what Xiaofang said, Zhang Chen also felt that this matter was important. He thought about it for a while and said to Xiaofang:

"Give me this article."

"What are you going to do?" Xiaofang asked curiously.

"I think you are right. I will send your article to Sun Hou and Li Yong tomorrow to see if you can pass your opinions on them and attract the attention of the above."

Zhang Chen and Xiaofang said, and Xiaofang nodded and said yes.

Zhang Chen remembered another thing, and he asked: "According to your opinion, does Zheng Huihong and his company also have risks? Are they also engaged in startup loans for sellers? And their flower shells are similar to credit cards?"

"It's different. They use technical means to use big data analysis to do risk control. It can be said that they are better than banks and us. We don't have such technical means."

Xiaofang looked at Zhang Chen and continued:

"Their entrepreneurial loans are cooperated with CCB. Through CCB, there is no problem with compliance. Technically, they rely on big data analysis. For example, if your company sells how much goods and how much raw materials are imported every month, they have data. Then, with the three companies jointly guaranteed, the risk control is done very well.

"As for the flower beans you mentioned, the same is true. Their credit limit is also based on your behavior on Taobao, collecting all your data, and making accurate analysis based on this to determine your credit limit and repayment ability. How much do you consume online every month, including whether you consume daily necessities, luxury goods or snacks, etc.

"From every purchase you spend, the computer will calculate whether you still have surplus food. For example, if you are on the TAOB.com, if you only buy daily necessities every month, your financial conditions will definitely be inferior to those who often buy snacks and luxury goods.

"There are also the grades of what you buy that can analyze your quality of life. In this way, computers can have thousands of analysis methods to dissect you to understand yourself more than you do.
Chapter completed!