The first half of 2009 domestic private television companies to obtain bank loans

The first half of 2009, the bank to the private television company frequency throwing hydrangea. Especially in the industrial and Commercial Bank of China friendship brother and PolyBona loans, becoming the first large state-owned commercial banks Chinese intervention in private cultural industry landmark event.

With the development of cultural industry and strengthen, banks began to pay attention to the leader in this field. In recent years, bank loans "electric shock" -- television drama gradually raised. "Chibi", "the banquet", "Curse of the Golden Flower", "builds up number" and so there are funds in banks. In 2007 October, the TV series "Bao Liandeng antegrade" copyright pledge to the bank, loans 6000000 yuan.

In the financial market of cultural and creative in Beijing, the Bank of Beijing cultural and creative enterprises loans accounted for more than 90% of the total amount of financial institutions issuing. The Bank of Beijing and has China film group, Huayi Brothers, the light media, Wanda cinema, orange sky entertainment, were too Co, Tian Yu culture of more than 280 high growth of cultural and creative enterprises to establish relations of cooperation.

In the current financial crisis situation, large enterprises contraction some traditional industry investment, credit effective demand is not. Bank loans do not go out with. In the pictures in the boom, banks seem to have found the small and medium-sized enterprise culture of the export credit.

"Now the bank is a financial lending pressure. With the development of culture industry in the whole economic GDP ratio is also growing, they should not only interested in traditional industries. Now the development of movie is good, good, good projects, if the director and CASS in place, the financial risk is controllable." Yi Kai capital President Wang Ran told reporters analyzed the current bank mentality.

In fact, due in late on the film and television industry, banks do not know much about, in this case and the loan amount is limited, the intermediate link deletion. So for a lot of money tight film culture enterprise credit, the bank is relatively cautious.

But for most of the culture of enterprises, can get bank loans, is still beset with difficulties. "Must be those who have credibility, have the strength of the enterprise can hope to get bank loans, at the same time, the company can only do the film industry, but also needs to have other industry mutual support, overall strength in order to Surety Company." Ray media CEO Wang Changtian make a pointed comment.

In 2004, the Shenzhen Development Bank loan shooting the movie "the banquet" from the Huayi Brothers, fired the first shot private cultural enterprises to bank loans film. Today, Huayi "has put the bank financing this line opened, the bank also began to recognize the entertainment industry. Now there are many domestic companies can get bank loans." Huayi Brothers chairman Wang Zhongjun told Tencent entertainment reporter.

At present, the Huayi Brothers has two big bank loans, one is the Bank of Beijing on TV last year loan, another is in March this year, industrial and Commercial Bank of China to film a loan of 120000000 yuan. Before Wang Zhongjun did not recognize the ICBC or the Bank of Beijing, has not introduced through the friend relationship loan cooperation, Huayi and Beijing bank and ICBC, completely bank is directly through formal channels to contact the company. "ICBC directly asked us: President to visit a Huayi Brothers, want to have cooperation in the movie the loan, you can arrange the time? So the two sides on the appointment, the bank over a team, from branch to branch (interest) leadership, to risk control, business, people, understand the Huayi Brothers film of the year plan, ask for the loan amount, agreed, that will solve." Wang Zhongjun said very easily.

And the industrial and commercial bank loans of Huayi, the most surprising for Wang Zhongjun is "large national banks very high efficiency." Wang Zhongjun said, from the initial talks to release paragraph time is very short. "Only about a week, there is a department of ICBC; after a few weeks, we will get the loan."

In fact, the ICBC in active contact Huayi Brothers at the same time, also take the initiative to throw the ball to the bona. 09 years in the mid June, the smooth access to the second round of financing at the same time, Bona won both the industrial and Commercial Bank of China loan support, the project loans 55000000 yuan, for the three film, "October besieged city", "young soldiers", "the way you make issuance expenses". Bona chairman Yu Dong evaluation of such over negotiations business business managers: "they are a bunch of school finance, young people with ideas, very professional, very active, and not do things sloppily, also hope to explore the loan cooperation in cultural industries. The whole procedure within two months to complete the."

Loan collateral: copyright mortgage under the veil of personal joint guarantee

Bank loans as the first to eat crab, Huayi bank loans Road, also experienced a process from small to large, from difficult to change. Wang Zhongjun told the reporters, Huayi Brothers is A+ credit standards in the industrial and Commercial Bank of China, "this shows that the entertainment industry is credit, not the troupes. At least until today, we do not owe the bank money, never overdue bank loans, all is benign."

With the following media reports tracking, the past few years, the mortgage loan of Huayi Brothers are changing. In 2005, Shenzhen Development Bank loans as the movie "the banquet" syndrome, Huayi Brothers to please China import and export insurance company guarantee, in individual unlimited joint and several liability, Wang Zhongjun put all his assets are in charge of the inside. "But I never thought there would be what problem, because I think I will not lose." Wang Zhongjun said.

Up to now, when what is the loan collateral asked about the Huayi Brothers, the industrial and Commercial Bank of China, Wang Zhongjun will not hesitate to answer: "by the film rights." the film rights mortgage, no "company guarantee credit without third party loans" bank form began in 2007, the Bank of China to Huayi Brothers years provide 50000000 yuan loan as "No. assembly.

Wang Zhongjun begs the question, is the Huayi Brothers, the industrial and Commercial Bank of credit guarantee, in addition to pledge by the movie rights of property, the same person joint guarantee, thus constraint management risk.

The relative number of film and television companies and media always emphasizes the movie copyright pledge, the Bank of Beijing Cuiwei branch senior manager Louis Liu does not agree: "copyright market value is difficult to estimate, so the actual effect of copyright pledge is not strong. Compared with several film copyright, we pay more attention to enterprise past performance, the financial health of the company, and the company managers, business team and business philosophy. The credibility of the enterprise, team and profit model is much more reliable than copyright."

Reportedly, China Merchants Bank initially for the loan is dazed, Huayi belongs to the creative industry, no no building workshop nor production line; as to the bank, the copyright is nothing but a pile of paper, they do not know the copyright value how much money, how to operate.

Wang Ran said, in the framework of Chinese current property law, copyright security legal effect is not very well. "-- because the bank cannot predict the movie comes out is what kind, whether really can have the producers said so much value. If you spend one hundred million, took a bad play, the box office is very low, so the copyright is worthless."

"Wang Zhongjun said Huayi is most early by copyright security with China Merchants Bank loans. But in fact, China Merchants Bank President Ma Yuhua knows, when the format right guarantee they didn't what role, is in fact more psychological comfort." Wang Ran said.

In fact, two years ago, China Merchants Bank to 50000000 yuan "" builds up number "loans, in addition to the copyright of the mortgage, personal name plus the Wang brothers and Alibaba chairman Ma Yun guaranty, and" builds up number "the box office income into account such as dedicated as security supervision. A series of conditions together, let China Merchants Bank lending decision. Number 50000000 yuan originally only vice president to sign, but the final signature is president Ma Yuhua. In addition, China Merchants Bank also put forward very harsh conditions: on the one hand, the provisions of Huayi Brothers their money over to China Merchants Bank loans; on the other hand, strict control of the film cost and payment schedule. China Merchants Bank to every 10000000 yuan way issued five loans, but also at any time to check the schedule.

"Builds up number" the success that banks are aware of the cultural industry also hidden profits. In the rapid development of Chinese film industry environment, including the later Beijing bank, agricultural bank, industrial and Commercial Bank of China, have begun to take the initiative to seek cooperation with Huayi opportunity. Some big companies are involved in the following industries related to the bank loan project. For example, in the 08 year of Beijing bank and light, John Boehner, Wanda in loan projects of cooperation.

Although the bank loans in the film company in the field of wind, but in fact in the financing system and China is not perfect, many missing links.

"Now through bank loans to support the cultural industry, thoughts and ideas are right, but we lack professional assessment agencies and the responsible department, now basically is the enterprise owner shall bear unlimited joint and several liability, including his property, securities, personal assets, equity and so forth, and on the inside." Yu Dong told Tencent entertainment reporter.
From the three big bank 09 year first half of loans, no matter the Huayi Brothers, the light of the media, or the Pauli Bona, in addition to the boss of the company, has stressed the film copyright pledge, whether the Bank of Beijing and industrial and Commercial Bank of China Beijing branch, require relevant companies mister or directly related to people who bear unlimited joint and several liability.

In fact, "infinite even loan responsibility" in this way, is absolute "Chinese characteristics, there is little the international practices. In the foreign film developed area, enterprise bank lending business, in addition to the specialized Guarantee Corporation (insurance company), and the reinsurance company. There is a direct link between the banks and insurance companies, if the producers to repayment, the insurance company will lose money to the bank, the insurance company will find a Guarantee Corporation, their risk re dispersed. In addition, the international passenger and ticket even custody of the company, the box office returns on the third party conduit company there, guaranteed income at the box office to priority for repayment, repayment after the rest of the money lenders to take. This relatively sound a lot of structure, has been in operation for many years of international.

"The unlimited joint and several liability is not very reasonable." Yu Dong said, "but whether it is Wang Zhongjun or me, do it no problem. Because if we are not confident in it, we don't lend." Wang Changtian also believes that the situation at present "normal. Your house and car are inside. In fact, even if those things together there is no bank loan amount. But the other think that at least is also a deterrent to lending companies."

In fact, in the actual operation process, banks of different companies every loan requirements and processing methods are not the same. If the Guarantee corporation loan way, by the Guarantee Corporation to do more to control; and the copyright mortgage lending, the key lies in the attitude of the banks. Some banks will see more tight: at that time, China Merchants Bank loan Huayi Brothers 50000000 yuan shooting "builds up number", the strict monitoring technique for hand tracking shooting team.

But if there is cooperation and association more companies with the bank, or to use the credit relationship more (such as government, big business personal guarantees, loans will be relatively feasible). For example, the company's basic account, the fund management business, including the staff wages, and listed companies, capital reserves and so on, are put in the bank? In short, the connection number, bank a better understanding of the company, will be relatively safe, bank to company support may be more.

The two inter related reflected in reality is: 08 years in August, the Bank of Beijing to Huayi Brothers to provide 100000000 Yuan drama packing loan, and Huayi Brothers media is committed to the exclusive Beijing cooperative bank bank as its TV business and its listing to raise funds separately.

09 years of Beijing bank to the light of the media provide intentionality credit 200000000 yuan film packing loan, the light media future three years of film production and distribution of funds, and the light of the media business accounts, personal financial business will give the Bank of Beijing, in addition, the light media also promised to raise capital accumulation on IPO the Bank of Beijing. The Bank of Beijing is a light tailor a personalized "Beijing light media limited financial service plan", described in detail the Beijing bank financing, account settlement, finance, banking and other services.

Guarantee Corporation down lines, supervision demanding

In April 09 from the bank loan of 120000000 loans, Huayi Brothers get still is the project loan. And Wang Zhongjun now want to get, is banking on the company's liquidity loans to support. Because liquidity loans, bank a call to account, company used without too much limitation. While the project loans, is generally not a place, but also the related regulation of the project funds are very strict.

08 years in August, the Bank of Beijing and the light media cooperation, the loan limit of 100000000 yuan, the loan for the first time include the liquidity, which also pioneered the credit financing of domestic financial institutions.

According to Wang Ran analysis, the light can get liquidity loan projects, because it has the normal operation of TV programs, resulting in normal cash flow. While the film and TV series is still relatively in to do a project configuration. "Of course, on the size, such as Huayi a year there will be twenty television series, ten movies, also can form a normal cash flow, then the flow of funds loans should also occur naturally."
　　
In the communication and cooperation in the next year, the Bank of Beijing the business team, fixed column light media ratings, the light of the information, copyright ownership, financial situation has carried on the detailed investigation. Before the early owing on the loan based on the light, in 09 years, the Bank of Beijing to light 50000000 yuan liquidity loans, the current 50000000 yuan has arrived.

The $50000000 loan, Beijing capital investment Company Limited by Guarantee provides guarantee for the light. Due to the increased security costs, plus the original bank interest, light financing cost is not low. Generally speaking, the bank interest rates for different enterprises of different, probably in the interest of 5%-6% standard floating up and down, because it is linked to some enterprises and risk, interest rates may be higher.

Guarantee fee each different, is about to be a ratio of more than 2%, some even as high as 4% ~ 6%. In this case, Yu Dong responded: "also had the Guarantee Corporation told me about, interest plus the guarantee fee, cost nearly more than 10%, loan cost is too high. So I'd rather not loan."

According to the Bank of Beijing revealed that, due to the cultural and creative industries limited scale, the first cost of light charged by contrasting with other industry slightly lower. "Because of the cost increase, also do not want to borrow so much light, enough on the line. Funding needs light really more than 50000000, especially some movie project funds, need to invest more funds." Wang Changtian said.

In fact, the light was to apply for the loan amount is more than 50000000 yuan, the first security as a precaution, the loan amount to 50000000 yuan. Person in charge of the Bank of Beijing are aware of the situation, take the initiative to find the light, we can provide more loans to the light, and discusses the copyright mortgage. After the final agreed, the Bank of Beijing to light the loan amount to two hundred million, initially to 50000000 yuan accounts, part two hundred million of the remaining 100000000 loans, 50000000 loans, mainly through the way of copyright mortgage lending.

"The bank asked Wang Changtian to find someone to do guarantee, light of the guarantee fee is a very high percentage. However, private entrepreneurs or like bank loans in this way, the first company doesn't need to sell shares, second banks will not require into his board of directors, the independence of the company looks more secure.

At the same time, lending itself to control within a certain proportion, because the loan is too high, the financial risk will increase. Itself of movie making too much money, interest cost is too high, will restrict the profit." Wang Ran analysis.

In order to reduce the risks, the light and Huayi Brothers, took the film copyright mortgage manner, so that the income "movie to Feng fill a vacancy", "balance of risk -- even some monolithic film lost, make the film will come back"; at the same time, the light shall also relatively easy, money can mobilize the to and fro in several films, reduce trouble.

In fact, now the concept of China Guarantee corporation or a finance company, and industry said Hollywood film and television Guarantee corporation are two concepts. Their guarantee fee and do some investigation, understanding of its film industry rules is very limited. Hollywood's guarantee and the corresponding management mechanism is very professional, according to the director, the card period, the film investment, time spent do know the score. The entire film process control is very strict, if overspends serious or more than expected, even a Guarantee Corporation has the right to exchange center creative staff. And Chinese financial Guarantee corporation are not professional, still do not have this capability, similar to the "method of cut off half the amount of funds" this simple to control the risk only.

Wang Changtian thinks, below current Guarantee corporation mechanism in the mainland, a series of rigorous investigation and will not easily change. Because the Guarantee Corporation to guarantee cost is relatively small, but the risk is big, the guarantee fee cannot balance the risk, so the survey more stringent, willing to be a guarantee of a limited number, and must will contract with the interests of the company, the legal representative of the company's assets together.

Now the bank on the cultural and creative industry understanding is not much, worried about their own risk. Wang Changtian think, is the most convenient method of business loans, the loans are entrusted to the Guarantee Corporation, the Guarantee Corporation to investigate, evaluate, and finally gives a guarantee amount, to enforce the security procedures. But there will be many problems: one is the Guarantee Corporation will be very strict review of the project, which will have some seem to be beneath the human character. The light in the process of bank loans, also encountered a similar situation. For example, Guarantee Corporation will cut 50% of the quota application even more light. The last paragraph can borrow much, not in the hands of the hands of the banks, but is willing to give the company Guarantee corporation provide much guarantee, which depends on the Guarantee Corporation on the basic situation of the borrower's understanding, as well as the borrowing firm can mortgage the property to the number of. "But the problem is that: the cultural creative industry is light asset company, this kind of enterprise few fixed assets, but also a limited number of personal assets owner, so the mortgage amount is relatively small. Therefore, the Guarantee corporation may not provide guarantee amount too much, reflected in the bank there is not much loans."

Of course, the company to borrow from banks, also do not necessarily through Guarantee corporation. Individual projects, such as some prospects good TV drama, movie, and not through the Guarantee Corporation, with copyright mortgage bank loans directly. But this situation is more complex, need many factors play in one piece.

Advantages and disadvantages of bank loans

For bank loans, loan companies seem to have a kind of "love and hate" feelings. Due to the strict regulatory control and audit, coupled with high cost loans, 08 years Beijing bank lending to light up the upper limit of 100000000 yuan, the light finally only 30000000 yuan of floating capital loan, and owing on the loan.

The Bank of Beijing also in 08 years to adding one hundred million yuan loan ceiling, and PolyBona is simply did not touch the money. Wang Zhongjun again shows the superb ability of capital operation, he will be the Bank of Beijing approved 100000000 loans for 50000000, and to another bank loans in advance owing on the loan, then renew.

But in fact, "whether one hundred million or 30000000, for us, the number of the actual funds in place is not enough." Wang Changtian to Tencent entertainment reporter.

For this phenomenon, analysis of Yi Kai Advisory President Wang Ran to reporters: now, although such a line of credit in the name of the bank credit, now basically is projects to follow. If no suitable projects, enterprises are not lending to. The bank will also examine the specific projects, banks feel not right for it, don't grant program. But the real use, is the need for project follow-up.
"Banks will only be icing on the cake, not timely assistance. The company can't really have no money, no money is not to take the money." Winter is through bank loans characteristics: the more you are short of money, he will not lend you, even if he eats one hundred meals are not possible; and once the book your capital adequacy, the bank will lend to you.

In Wang Changtian's view, from the business's daily operations, loans that is best, because it's cost of capital is relatively low, as long as the company is in normal operation, company is always can afford these loans, at the same time, whether banks or Guarantee Corporation, the operation will not interfere with its normal. At the same time, a bank loan and unfeeling: to the deadline, the company must owing on the loan, once the company's cash flow problems, it will bring a great risk, a lot of enterprises are not good at this fall -- not business, but to the repayment period also can't -- because the company's money on the other place. So the bank to freeze the funds of enterprise, it is one disaster after another, the enterprise is cornered.

At present, the bank to China private cultural enterprises loan time is very short, usually only one or two years. From the period of enterprise management, often within a year, the money may not come back, that is to say, when companies are cash defect, banks have to chase the loan, if the company made a little longer investment did not come back, do short debt long throw, finally by the bank to death.

Yu Dong for the bank loans attitude is: there is no money in the bank, the film also beat, company operating as usual, "the company has the potential to project is the key, investors look at, see more at bank." So far, not much at home and get bank loans film project. "In fact, banks are not lending the first private television company a lot of money, only test, if the company credit and cash flow is good, the bank will increase the number of continuously in the loan project in the future. So these initially involved in the bank loans to enterprises have a role model. If there are two corporate loans appeared, it can have a bad record loan extension, will also affect the reputation of the industry."

Yu said, Beijing City Cultural Industry Research Center is to increase support for cultural industry in fund efforts at the same time, the introduction of some good Guarantee Corporation, insurance companies come in, at the same time for large-scale professional production company shares. "Such as the China Film Group and other authoritative invited several companies sent a special assessment staff to do the project identification and loan valuation."