There is also a non-designated small cash loan business that is self-operated or cooperated with mutual financial institutions in the market. Part or all of customer screening, customer loan management (customer consultation, partial service application, etc.), and "back-up" compensation for overdue and non-performing loans through financing guarantees or cooperation with insurance companies. In addition, licensed consumer finance companies are still actively cooperating with banks to develop joint loan business, but at present there are not many mature ones, even if they do not account for a high proportion of their business composition. (2) Enterprise capability The business of sms marketing service consumer finance is actually the business of credit, and the basic benefit of the credit business lies in the difference between the financing cost and the loan income. Therefore, the
financing ability of licensed consumer finance companies and the ability to obtain low-cost funds fundamentally determine the profitability of consumer finance companies, and consumer finance financing channels generally include shareholder borrowing, interbank lending, ABS or ABN bonds, and syndicated loans. etc. Among these structures, the most smooth and realized ratio is interbank lending, and the interest rate of interbank lending is currently generally 7% to 9%. The business of consumer finance is actually a business of risk management in essence .