Recently, the editor’s attention was drawn to the news that a textile factory was in arrears with workers’ wages and that the employees had been unsuccessful in asking for wages for two years.
It is understood that this factory opened in September last year The labor dispute has been resolved, and the factory has agreed to sign it. However, more than a year has passed and the workers still have not received their wages, and they have been in arrears for nearly two years.
Workers’ salary expenses are large, and bankrupt bosses are unable to repay them
For factory workers, the happiest thing in the year is to receive the year-end bonus and go home happily to celebrate the New Year. In the past two years, due to the sluggish textile market, Due to the economic climate, especially this year’s epidemic, it is very common for textile companies in many places to suspend production and close down. Not only some small-scale companies, but also some well-known companies are also in trouble, and the biggest reason for business closures is also The capital chain is broken, which has resulted in many bankrupt textile companies not having enough funds to pay workers’ wages.
For the boss, the monthly salary of workers Wage is a big deal. Taking a factory with 100 people as an example, based on the average salary of 7,000, the monthly salary is 700,000, and 7,000 is also a very conservative number. When the output is high, one person’s salary can reach at least 10,000. , that is a salary of more than 1 million.
For factories that are strapped for cash, this is indeed a huge sum of money. What should I do if I can’t get the money? Some bosses who care about workers still have to pay back workers’ wages even if they borrow money from banks. They can’t owe workers anything but their hard-earned money, while other bosses will choose to default on arrears, and they will continue to do so as soon as they delay. For a long time, he even left. From some past cases, we know that these poorly managed bosses are not doing their jobs properly. They are also working diligently and hard-working to run the factory. However, sometimes they are unlucky and encounter problems such as poor market conditions or poor capital flow.
High inventories and longer payment terms have led to difficulties in corporate capital turnover
Not only Bosses who are on the verge of bankruptcy have the problem of tight capital chains. This year, it can be said that 70 to 80 percent of bosses have encountered financial constraints at one time or another, especially companies with a large proportion of foreign trade business. A company that produces peach skin, A Chunya Textile company said: “Basically all our foreign trade orders were stopped in the first half of this year. Funds were very difficult at that time. Workers in the factory were paid every three months, and hundreds of looms in other places were all paid. All stopped.” Many textile bosses said that after so many years of work, this year is the most difficult year. In addition to reduced profits, high inventory and longer payment terms are also the most important reasons for the difficulty in capital turnover of textile companies.
It is reported that a person who produces imitation memories in Jiangsu and Zhejiang areas The boss said that this year, the inventory of some conventional polyester taffeta varieties in their factory has exceeded 500,000 meters, which means that millions of funds have been occupied. The inventory cannot be cashed out, which means there is no working capital, and there is no way to go. Buying raw materials, paying wages, etc. Therefore, how to alleviate the financial pressure next is to reduce inventory by reducing production and selling goods at low prices, and secondly to collect payment in a timely manner. The receivables cannot be collected, and the pressure is still on the company.
Operating with debt is risky, Boss Bu remembers scientific lending
Now there are only 100 loans left in 2020 It has been more than a month. For many fabric owners, in addition to completing the order at hand, the most important thing is to start collecting the balance payment. Especially for small businesses, sometimes the reason why the capital chain is broken is because the previous company returns. Payment was not made on time.
Due to the poor market conditions, many factories allow customers to purchase goods in arrears, and the payment terms are generally 3 months or even longer. One owner owns more than 200 units. The cloth boss of the loom said: “We still have 40 million yuan in loans that have not been recovered. We just borrowed another 10 million yuan in loans from the bank.”
In terms of funds In times of stress, various financing channels have become a panacea for textile bosses to bring their companies back to life. Some companies are eager to use money, but cannot apply for bank loans, and even choose some private lending institutions with lower standards. These loans Institutional interest rates are very high, and many companies go bankrupt in the process of repaying interest payments.
I once heard a textile boss talk about a case. This was a cotton acquisition and processing company. In 2009, the boss saw a nearby non-woven company. The benefits were very good, and the factory was expanded to start non-woven fabric processing business. The expansion of the new factory requires capital investment. Boss Qu used fixed assets as collateral to borrow money from the bank.�Loan of 6 million yuan. In 2011, the demand for non-woven fabrics plummeted, and Boss Qu could not sell a large amount of goods. In addition, due to poor payment collection, the total amount owed to banks and private loans in the past few years was more than 12 million, and he finally ran away.
Running a textile factory is never an easy task. Many of the bosses have put in a lot of energy, but the result is still a dismal end. Boss Bu Be careful not to make the same mistakes in the following aspects!
1. Investment and lending are risky, do not use private funds at will, otherwise the interest will compound and the consequences will be disastrous
2. Control production and inventory, and do not produce blindly.
3. The market situation is not good this year, and it is difficult to get the final payment. Textile workers should plan in advance and avoid old accounts over the new year to ensure that they can be settled at the end of the year. </p
