I. Brief introduction of short-term loans
Short-term loans (short-term $ TERM loans) refer to all kinds of loans that enterprises borrow from banks or other financial institutions according to the needs of production and operation, and the repayment period is within one year, including production revolving loans and temporary loans. In contrast, it is a long-term loan.
In China's accounting practice, short-term loans refer to all kinds of loans borrowed from banks or other financial institutions by enterprises to maintain normal production and operation or pay off certain debts, and the repayment period is within one year (including one year). Short-term loans mainly include operating revolving loans, temporary loans, settlement loans, advance deposit loans and special reserve loans.
Second, the accounting of short-term loans
The accounting of short-term loans mainly includes three aspects: first, the accounting of obtaining loans (when an enterprise borrows from a bank or other financial institution, it should sign a loan contract, indicating the loan amount, loan interest rate and repayment time, etc. ); The second is the accounting of loan interest; Third, the accounting treatment of loan repayment. Short-term loans are generally short-term and recorded according to the amount obtained.
Types of short-term loans:
1. Operating revolving loan:
Also known as production revolving loan or commodity revolving loan. Loans obtained by enterprises from banks or other financial institutions because their working capital cannot meet the needs of normal production and operation. When handling loans, enterprises should submit annual and quarterly loan plans to banks in accordance with relevant regulations, and handle loans according to the loan receipts in the loan plans after approval by banks.
2. Temporary loans:
Due to seasonal and temporary objective reasons, when the normal capital turnover can't meet the needs, the short-term loans are included in the production turnover or commodity turnover. Temporary loans shall be subject to the "one-by-one nuclear loan" method. The loan term is generally 3 to 6 months, which is used for the specified purpose and returned according to the accounting period.
3. Loan settlement:
When the sales payment is settled by collection and acceptance, the money borrowed by the enterprise to solve the funds needed in transit after the goods are sent out and before the payment is received. If the enterprise collects money from the bank within the specified time limit after delivery (usually 3 days, but not more than 7 days under special circumstances), it can apply for collection and acceptance to settle the loan.