Capital lending is a financial transaction, that is, a borrower borrows money from another lender, and usually pays off the principal and interest within a certain period of time. This kind of financial transaction is usually used to meet short-term capital demand and can provide flexible financing methods for enterprises. Commercial banks and other financial institutions are usually the main providers of loan funds. The interest rate of loan funds is usually higher than that of bank loans.

Generally speaking, loan funds can be divided into unsecured loans and secured loans. Unsecured lending is usually based on institutional credit, while secured lending needs collateral as a guarantee. In addition, the way of borrowing funds will also vary according to the market, region and financial institution. In some markets, the interest rate of loan funds is usually determined by both parties, while in other markets, the interest rate is usually announced by some authoritative organizations on a regular basis.

Although borrowing funds can provide a flexible financing method for enterprises, it also involves higher risks. For example, if the borrower fails to repay the loan on time, the lender will face losses. Therefore, lenders usually take the borrower's credit status, financial status and the value of collateral as evaluation criteria. Lenders also need to ensure that they have enough cash flow to repay on time to avoid future defaults. The above risk tips are helpful for enterprises to make a full risk assessment before lending.