A rigid liability contract refers to a contract in which the parties must pay a certain interest rate and principal as agreed within a certain period of time and a certain amount. Under this kind of contract, the borrower can't adjust the repayment period and amount flexibly. However, the advantage of this borrowing method is that it can provide borrowers with relatively low interest rates.

The advantage of rigid debt contract is that this form of debt will not be interfered by external factors, and the borrower can directly predict the cost and amount of the loan, which is beneficial to the long-term planning and development of the enterprise. However, the shortcomings of the rigid debt contract are also obvious. Because the term and amount of the loan cannot be adjusted, this kind of debt also limits the borrower's economic activity ability to some extent, so it needs to be carefully selected.

Rigid liability contracts are usually suitable for long-term financing schemes, such as real estate development, logistics and warehousing, and other fields that require a lot of cash investment. These areas are characterized by the long-term and stable investment of funds, and rigid debt contracts can provide stable expected returns and returns acceptable to both borrowers and funders. In a word, the rigid debt contract is a way of borrowing, which has obvious advantages and disadvantages. It needs detailed evaluation and careful analysis in its application, so that both parties can achieve the optimal financing effect.