Shaanxi Provincial Furniture Association discusses "funding difficulties"

On July 26th, Shaanxi Furniture Association and Xi'an Bank jointly held a silver business symposium. Representatives of 32 small and medium-sized furniture manufacturers in our province participated in the symposium to discuss the difficulty of financing of Xi'an furniture enterprises. At this symposium, most small and medium-sized furniture companies said that the biggest problem now is the difficulty in business operations due to the sharp rise in costs. Liu Pengli, the general manager of Daming Furniture, said that since the beginning of this year, the cost increase of enterprises has been about 25-30%. In addition, the financing of SMEs is difficult, and the company's temporary working capital is particularly tight. More companies have also reflected that due to the difficulty in financing small and medium-sized enterprises, the industrial upgrading proposed at the beginning of the year has become a bubble. Enterprises are in urgent need of effective support from financial institutions such as banks. At the meeting, Huang Xingchang, the south branch of Xi'an Bank, said that the company is facing a lot of financial pressure. The bank will change its business philosophy and set up some financing business for SMEs, so as to make the financing method more flexible. Huang Xingchang believes that to solve the problems of “multiple links, complicated procedures, and small quotas” for loans, enterprises and banks should establish good credit, and enterprises should improve financial procedures in order to enhance their credit qualifications. Li Yulin, president of the Shaanxi Furniture Industry Association, said that as an industry association, he would try to communicate with the bank and find a good financing path for the development of furniture enterprises. The furniture enterprises themselves must continue to innovate and create more suitable for the current market development. The furniture products must be operated in good faith and establish a good credit system.

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