The term of bridge loan mentioned in in the name of people is generally within 6 months and not more than 1 year, which can also be called short-term bridge loan. The professional explanation is as follows:
Short-term loan across the bridge means that financial institution A can't operate because of temporary lack of funds after getting the loan project, so it consults financial institution B and asks it to help distribute funds. After the funds of financial institution A are in place, B quits. For B, this loan is the so-called bridge loan.
In China, policy banks such as CDB/ Exim Bank/Agricultural Development Bank play the role of financial institution A, while commercial banks play the role of financial institution B. ..
Short-term, generally within 6 months, not exceeding 1 year;
Rate of return on capital is high, and the corresponding loan interest rate is high, which is 2% ~ 5% higher than the general loan interest rate;
High gold content can play a supporting and inciting role.
As a lender of "repaying the old and borrowing the new" business, it is necessary not only to know what short-term loans across the bridge mean, but also to understand the risks that may be faced in the process of providing funds:
1, high financing cost and high capital risk. Generally, the annualized interest rate in bridge loan is around 40.8%;
2. Enterprise credit risk. Because different banks, branches of the same bank in different regions and at different levels have different grasp of the scale of loan approval, there is uncertainty whether the borrower will succeed in renewing the loan;
3. Moral hazard of bank employees. Now many employees attach importance to their performance appraisal, hoping to gain personal gain through bridge loan. The top management of the bank did not stop them and condoned the illegal behavior of employees. Once employees flee privately, banks, customers and fund providers will suffer heavy losses.
A comprehensive interpretation of four aspects of short-term loans.
Is there a problem with the cash flow? Short-term loans help you.
Editor's note: What is the meaning of short-term loan across the bridge is very simple. As we all know, bridge loan is in a legal gray area, but it is very common in banks. There is convenience, but the risk is greater. I suggest you choose carefully. You can go there if you need money badly.
Choose more formal and safe loan products, and friends in need can click here.
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