However, after experiencing the industry turmoil, the offline business of Buyingxia, which once insisted on offline, is facing a comprehensive contraction. It seems that the lack of new financing in these three years also shows that the development of the platform has already entered a bottleneck period.
Based on the temptation of offline, the annualized income exceeds 30%
Dan Paixia's operating company is Shanghai Qincang Information Technology Co., Ltd. (hereinafter referred to as Qincang Technology). Its founder Hu Dan holds an MBA from Stanford University and a bachelor's degree from Tsinghua University. He has worked in consulting for General Electric and McKinsey, and served as the vice president of Sequoia Capital.
On March 20 14, Hu Dan founded qincang technology and established the strategic direction of offline customer acquisition. In July of that year 12, Bill Man business was launched, mainly engaged in offline 3C digital products, battery cars and other consumer staging business. In August, the first Kunshan agent was signed, and on June 20th,15, 10, the monthly payment was1000000. By July, 20 17, it had covered almost all provinces and cities, with nearly 70,000 stores, and the maximum monthly loan exceeded 500 million yuan.
At the end of 2065438+2007, Buyingxia launched the "Money Elimination 2.0" direct loan model, in which merchants or agents lend directly to customers with their own funds through Buyingxia platform, and Buyingxia is responsible for providing services such as risk control, credit channels and data report support.
This model unifies the interests of buyers and agents. On the one hand, it can avoid the fraud risk of merchants, and the platform earns risk-free income. On the other hand, it partially solved the growing demand for funds.
However, at first, Bill Payer publicized to the cooperative mobile phone merchants that the advantages of owning the online small loan license business were covered up, and the introduction of the direct loan model made the business compliance unable to withstand scrutiny.
In order to promote the direct loan model, in 20 18, bill payment once made a high-profile statement that all cooperative merchants had zero losses and the average return on investment was over 30%.
In addition to the high profits obtained by merchants, there are also bad debts, collection costs and various service fees of the platform, which will be passed on to borrowers, so borrowers' borrowing costs are higher.
Let's take a repayment order at that time as an example. The loan amount is 2,999 yuan, which is repaid in 8 installments of 3 10.52 yuan each.
(Legend: Repayment Form)
According to the IRR formula, the annualized interest rate of this loan is as high as 90.84%, and the annualized interest rate of APR is above 42%, both of which far exceed the upper limit of 36% stipulated by law. Of course, only such a high interest rate can support the attractive income of 30% per year.
In addition to offline 3C consumption staging, from 2065438 to September 2006, Qincang Technology began to enter the field of military medical beauty staging and launched the business platform Star Plan App. However, due to the extremely opaque price of the medical and beauty industry, it is difficult to know the real borrowing cost. However, some borrowers said that there is a huge gap between the installment and the later loan interest when doing plastic surgery.
On the transition line, usurers keep paying for their own face.
Bill Man has publicly stated many times that the company has established the direction of offline customer acquisition since its establishment. Compared with online customer acquisition, active marketing mode has high quality, high loyalty and high life cycle value. This choice allows the paying man to avoid the whirlpool of the so-called "online usury" and form a complete set of exclusive cheats for offline risk control.
However, this is not the case. As a low-frequency consumption scenario, offline 3C consumer finance has very limited profits from a single borrower. To this end, in addition to online medical beauty business, Buyman has launched cash loans for old users since 20 16 to extend their life cycle.
Qincang Technology also launched the cash loan platform Vitality Flower at the beginning of 20 18, and even set foot in the 7 14 anti-aircraft gun on 20 18-20 19. Of course, the loan interest rate of these online cash loan products does not lose the offline installment at all, nor does it avoid the whirlpool of usury.
We found a screenshot of the cash loan interface that bought the Win Man App at that time. Loan 1 000 yuan, with a term of 30 days. It needs to be repaid at maturity 1, 2 14 yuan, and the annualized interest rate is as high as 256.8%.
(Legend: Debit Man Loan Interface)
With the strong intervention of market competition and supervision, bill payers have repeatedly said that they want to cut interest rates. But in fact, the effect of interest rate cuts is not obvious, and it is far from legal.
Let's take a loan in June+10 this year as an example. According to the contract, Party B is Qincang Technology, and the loan principal is 5,000 yuan, which will be repaid in six installments. The principal and interest of each installment is 983.33 yuan, and the capital cost is 36% annualized, and an additional service fee of 150 yuan is required every month. In case of overdue, the overdue service fee is 20 yuan/day.
(Legend: Buyman loan contract)
The capital cost shown in the contract is 36%, which is calculated on the basis of APR, without considering the high service fee. If calculated according to the IRR formula which can better reflect the borrower's real borrowing cost and the service fee is included, the actual annual interest rate of the loan will reach 1 14.74%.
The borrower also mentioned that the platform deducted the 550 yuan premium in the next payment, which means beheading interest in disguise. If the borrower actually gets the principal of 4450 yuan, then the real borrowing cost is as high as 163.77%.
(Legend: premium deduction record)
For overdue fees, the daily 20 yuan collection service fee listed in the contract is also converted to an annualized rate of about 160%.
According to the borrower's feedback, Qincang Technology's platform has cooperated with a number of insurance brokerage companies to deduct premiums, including Shanghai Zhonghui Insurance Broker Co., Ltd., Bao Tong Insurance Agency Co., Ltd., Beijing Tiandao Insurance Broker Co., Ltd., Beijing Ronghai Insurance Broker Co., Ltd. and Guolian (Beijing) Insurance Broker Co., Ltd.. , whose products include Yong 'an Property Insurance Borrower's accident insurance.
Of course, Qincang Technology did not miss the opportunity of 7 14 anti-aircraft guns. On March 9, 20 19, Ms. Liu said that the dividend loan operated by Shanghai Shenmei Information Technology Co., Ltd. issued a seven-day cash loan. After deducting the beheading interest, it actually reached 2,268 yuan and needed to be repaid 2,700 yuan, equivalent to more than 800% annualized. The company is a wholly-owned subsidiary of Qincang Technology, and the legal person is the same as Qincang Technology, both of whom are Hou Xiangyu.
(Legend: Bonus loan 7 days cash loan)
In addition, many borrowers said that Vitality Flower misappropriated various 7 14 anti-aircraft guns, including the Brother Platform. Tibet Medici Internet Microfinance Co., Ltd., a subsidiary of Qincang Technology, was also exposed for allegedly collecting beheadings and violent collection.
Controversy continues, and Qincang Technology is caught in the whirlpool of campus loans and fraudulent loans.
Unlike most lending platforms, which restrict users to be 22 years old or above, Buyman and Vitality Flower are only limited to 18 years old. At the beginning of the establishment of Bill Man, it was located in the blue-collar class of 18-35 years old. The official account of Vibrant Flower WeChat also indicated that 18 years old can apply for a loan. However, such an age requirement is obviously easy to touch the campus loan red line.
(Legend: Vitality Flower WeChat official account)
Last month, a college student said that he was cheated into buying an electric car by stages while looking for a part-time job. The liar then gave him a software crowdsourced by Meituan, claiming that he could earn five or six thousand yuan a month. But he found that without one or two bills a day, repayment was a problem.
(Legend: College students tell stories of being cheated)
It is understood that this software is a part-time order-taking App for Meituan takeaway. Many people on the Internet have encountered similar scams. Many deceived users also said that the battery car is not worth the price at all and does not intend to repay.
In addition to staging electric vehicles and offline mobile phone consumption, which used to be the core business in beermann, many vicious loan fraud cases have been born for a long time.
In the past two years, a large number of citizens in Guangzhou, Dongguan, Zhuhai and other places have been cheated in mobile phone shops. In the name of winning the prize, the clerk promised to the public that he could buy the machine at a low price, then used his information to apply for installment loan and transfer money in Buyingxia App, and then gave the public a low-end mobile phone, indicating that he would try it first and then replace it. As a result, in a few days, the people in the mobile phone shop went to the empty building. There are many new college students.
Some users also said that their local mobile phone shop was taken away by the police because of similar scams.
(Legend: User communication was cheated in the installment experience of the paying man)
In fact, since Bill Payer went online, he has been facing all kinds of fraud problems.
20 17 with the cooperation of the security investigation department of bill payer, the public security organs have cracked more than 20 cases of fraudulent loan cashing, including Guangxi Beihai Trading Co., Ltd., Hebei Chengde Intermediary Case, Zhejiang Wenzhou Intermediary Forest Case and Shandong Boxing Salesman Case.
It is worth noting that when borrowers realize that they have been cheated, their willingness to repay will become extremely low, and we will see that a large number of cheated borrowers have made it clear that they will not repay.
(Legend: Many deceived users)
Business continues to shrink, where is the buyer of compliance issues to be solved?
Since 20 17, the offline consumption installment business has shrunk at a speed visible to the naked eye, and the installment advertisements that were once lively in many mobile phone stores have now disappeared. At this point, the platform is obviously to blame.
Due to the rampant phenomenon of fraudulent loans, bad debts are difficult to control, and the image of usury is gradually rooted in the hearts of the people. Consumers no longer buy it, and even go to the store to make trouble. The chaotic market has caused many offline staging platforms to close or quit on a large scale, including calf staging, thousand staging and single-paying men who once insisted on offline customers.
On 20 18, the bill payer's offline business began to have problems. According to media reports, at the end of July of that year, every customer would be rejected, and the pass rate was 0. Later, the plan given by Qincang Technology at the headquarters was to invest money and lend money if you are willing to do it, and leave if you are unwilling to do it. However, the compensation was never paid.
According to the inference of time, it is not ruled out that buyers who rely on the outside world were facing a shortage of funds at that time. According to public information, the payer's funders have included many P2P platforms such as Anxindeli and Bohai Trust.
However, since the beginning of this year, the offline business of Buyingxia still seems to have not improved. The medical beauty business platform Star Plan App has not been updated for more than a year. The profile of BuyingXia App has also been updated to all products are directly supplied by JD.COM, and the label of offline staging has been removed.
It can be seen that Qincang Technology has almost completely abandoned the strategic direction at the beginning of the company's entrepreneurship and comprehensively transformed offline. However, from the perspective of industry influence, the bill-paying man and the vitality flower are not prominent, and the interest rate compliance problem has not been solved.
It is worth mentioning that Qincang Technology established Beihai Qinjia Financing Guarantee Co., Ltd. in Beihai, Guangxi on June 5438+ 10 this year, but its business orientation is limited to compliance entities in Guangxi.
From March 20 17 to now, there is no new financing in the past three years. We will wait and see how Qincang Technology will break through in the next stage.