1. Is the financing cost of project financing low or high?

The financing cost of project financing is higher than that of working capital loans. Because project financing is defined as fixed asset loans. It is divided into construction period and operation period. The characteristics of borrowing are long term, slow payment, and the need for installment repayment. The specific borrowing interest rate is often determined based on the construction period of the project. The floating rate of interest rates must be negotiated with the financing unit.

2. The difference between project financing and working capital loans

Hello, project financing includes working capital loans, project financing includes working capital loans, fixed asset loans, etc. I would like my answer. Can help you

3. What is the difference between current loans and project loans?

1. Current loans are working capital loans, which include both current loans in the form of mortgage and current loans in the form of credit. loan. Look at credit, see how well the company is operating, whether the cash flow is stable, that is, whether the company's sales are smooth. When a business is operating well and has stable cash flow, it can still guarantee on-time repayment even though there is no mortgage. If you have a cash flow loan, it can solve the problem of difficulty in getting loans for many small and medium-sized enterprises, because most of these enterprises do not have much collateral to apply for loans.

2. Project loan, also known as project financing, or project financing, is a financing method guaranteed by the feasibility of the project itself with a relatively high return on investment or the mortgage of a third party. The main forms of mortgage include: project operation rights, project property rights and special government support (with documents), etc. The biggest difference between project financing and general loans is that the funds to repay the loan come from the project itself, not other sources. The sponsor of a project loan is only the initiator of the project unit, and its financial resources and reputation are no longer the main guarantee objects of the loan. The funds are provided directly to the project unit by the lender.

Response time: 2021-03-02. For the latest business changes, please refer to the official website of Ping An Bank.

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4. The difference between project financing and working capital loans

Working capital loans are a form of project financing.

Project financing refers to a type of financing that is introduced into a specific project in a feasible way

Bank loans are an important part of project financing. Bank loans are divided into:

1. Consumption loans

2. Operating loans

Working capital loans are part of operating loans

Supplement: Trust companies have also Current loans have been issued.