Banks lend money to demanders at a certain interest rate according to relevant state regulations. What are the requirements for bank loans? Applicants for bank loans need to meet different conditions before they can get loans.

Within the limit, domestic banks issue letters of guarantee or standby letters of credit to provide financing guarantees for domestic enterprises and overseas companies without separate approval, which greatly shortens the business process compared with previous financing guarantees.

Analysis of Internal Insurance and External Loan

Domestic insurance and foreign loans are divided into two parts: one part is "domestic insurance" and the other part is "foreign loans". "Internal insurance" means that domestic enterprises apply to domestic branches for issuing letters of guarantee, and domestic branches issue financing letters of guarantee to offshore centers; "Foreign loan" means that the offshore center issues loans to overseas enterprises according to the letter of guarantee received.

Assume that the overseas subsidiary of Company A is Company B, and its own operation, such as participating in international trade competition, requires trade financing lines or working capital loans, and is in urgent need of bank credit support. However, because Company B has been established overseas for a short time, or overseas banks have "scale" requirements for Company B, it is difficult to obtain overseas credit in a short time. Company A has good cooperation with a domestic branch of a bank and has credit support. In this context, it can be solved by the bank's "internal insurance and foreign loans" business.