1. What is the second source of repayment?

Second source of repayment: The second source of repayment means that when the borrower is unable to repay the loan, the financier handles the loan guarantee, that is, disposes of the collateral, pledged property or pursues recourse against the guarantor. Received payments.

First source of repayment: The first source of repayment is the collective term for the borrower’s production and business activities and related developments and their generation of cash flows that are directly used to repay the lender.

Banking financial institutions should follow the principle of prudence when issuing credit cards to students. Credit cards (except supplementary cards) are not allowed to be issued to students under the age of 18. When issuing credit cards to students who are over 18 years old and have no fixed job or stable source of income, a second source of repayment must be established, and the second source of repayment must have the corresponding repayment ability. Before issuing a credit card, a banking financial institution must confirm that the second repayment source has agreed in writing to assume the corresponding repayment responsibility, otherwise the card will not be issued.

The above financial analysis is based on financial statements prepared on the accrual basis, and the movement of funds reflected on the accrual basis is not completely consistent with the actual movement process of funds. It appears that the key factor that determines a borrower's ability to repay debt is its cash flow.

2. What is a lender, and what is the difference between it and a borrower?

Lender: refers to a person or financial institution that issues a loan to a borrower. It generally refers to a commercial bank that uses its own credit or property as a guarantee or a third party as a guarantee in its credit activities. Enterprises, institutions or individuals that borrow monetary funds from lenders. The bank and the enterprise sign a "Loan Contract", which stipulates the rights between the lender and the borrower. The borrower is the borrower who borrows funds, the lender is the borrower who borrows funds, and the lender is the lender. In short, there is an equal relationship between the two. Generally called borrowers and lenders, looking at it this way, borrowers and lenders should have opposite meanings.

3. What is the difference between a lender and a borrower?

The difference between a lender and a borrower: 1. A lender refers to a borrower who uses credit funds or its own funds to issue loans to borrowers. The person or financial institution that lends money generally refers to commercial banks and central banks. 2. Borrower refers to an enterprise, institution or individual who borrows monetary funds from a lender by using its own credit or property as a guarantee or a third party as a guarantee in credit activities. Article 2 of the "General Principles of Loans" The lender referred to in these General Principles refers to a Chinese-funded financial institution established in accordance with the law within the territory of China to engage in loan business. The term "borrower" as mentioned in these General Provisions refers to legal persons, other economic organizations, individual industrial and commercial households and natural persons who obtain loans from Chinese-funded financial institutions that engage in loan business. The term "loan" as mentioned in these General Regulations refers to the monetary funds provided by the lender to the borrower and repay the principal and interest according to the agreed interest rate and period. The loan currencies in these General Terms include RMB and RMB. Article 17 The borrower shall be an enterprise (public institution) legal person, other economic organization, individual industrial and commercial household approved and registered by the industrial and commercial administration authority (or competent authority), or a person with the nationality of the People's Republic of China and full civil conduct. capable natural person. To apply for a loan, a borrower must meet basic conditions such as a marketable product, profitable production and operation, no misappropriation of credit funds, and abide by credit, and must meet the following requirements: 1. Have the ability to repay principal and interest on schedule, and the original loan interest payable and The due loans have been repaid; if they have not been repaid, a repayment plan approved by the lender has been made. 2. Except for natural persons and institutional legal persons that do not need to be approved and registered by the industrial and commercial department, annual inspection procedures must be completed by the industrial and commercial department. 3. A basic account or general deposit account has been opened. 4. Except as stipulated by the State Council, the cumulative amount of external equity investments of limited liability companies and joint stock companies shall not exceed 50% of their total net assets. 5. The borrower’s asset-liability ratio meets the lender’s requirements. 6. When applying for a mid-term or long-term loan, the ratio of the corporate owner's equity of the new project to the total investment required by the project shall not be lower than the capital ratio of the investment project stipulated by the state.

4. What is the difference between a lender and a borrower?

I really can’t help but correct the views of several friends above. Lender: A person who lends money to a party in need of funds, generally refers to commercial banks and central banks; Borrower: A person who lends money to a party with funds, generally refers to individuals and enterprises.

The bank and the enterprise sign a "Loan Contract" to stipulate the rights and obligations between the lender and the borrower.