1. What is bridge loan?
Bridge loan, also known as bridge loan, is the behavior that bank borrowers raise funds to return to the bank through financing when their own funds are insufficient, and then obtain new loans from the bank to repay the financing loans. Simply put, it is to make up for the time gap when borrowers need financing. Bridge loan is a kind of transitional short-term loan, and the term generally does not exceed 1 month.
2. What are the risks in bridge loan?
1, business risk
For enterprises, the financing cost in bridge loan is too high, which can alleviate the urgent need. However, due to its short time and expected high annualized interest rate, the financing cost will further increase and the repayment pressure will become greater. According to the survey, the monthly expected annualized interest rate in bridge loan is generally around 2%-4%. Many enterprises, especially small and micro enterprises, cannot support such a high expected annualized interest rate of loans, which will have a negative impact on their operations.
2. The risk of enterprise capital flow rupture
In real life, bridge loan mostly happens in small and micro enterprises. Due to the high interest rate in bridge loan, the liquidity of funds will be greatly reduced. Once the bank lends money, it is easy to have the risk of capital fracture, and many enterprises will go bankrupt.
3. Moral hazard of bank employees
At present, account managers of some banking institutions pay more attention to the completion of business marketing tasks and credit risk assessment indicators linked to performance appraisal. Bank employees seek personal gain through bridge loan and condone the behavior of "robbing Peter to pay Paul".
4. Bank credit risk
A series of grey financing industrial chains have emerged in bridge loans. In some places, there are more than 2,000 investment guarantee companies with private financing as their main business, resulting in a vicious circle of financing in the real economy.