How much is the interest on the bridge fund?
The interest on bridge-crossing funds is generally between 2% and 5%, and some are even higher. Bridge loan is generally a process in which an enterprise borrows money from a social third party, then uses it to repay a bank loan due, and then returns it to the third party after the loan renewal is successful. Simply put, it is to borrow money to repay the bank loan first, and then repay other loans from the bank loan.
What are the risks in bridge loan?
1, bank loan cut off
In bridge loan, the biggest risk faced by enterprises is that banks no longer provide loans. A new debt relationship has emerged between enterprises and intermediaries.
2. Bear high interest.
The cost for enterprises to handle bridge loan is huge. Generally speaking, bridge loan is a "temporary turnover" business, and the interest on bridge crossing is calculated on a daily basis, and the bridge crossing fund will not exceed 10 days. If the enterprise can't pay back the money in a short time, it will bear high interest. It is understood that the monthly interest rate in bridge loan is generally around 2%-4%, and the converted annual interest rate is 24%-48%.
3. Disposal of collateral
Some enterprises will put their equity and shares in bridge loan. Once the bridge fails, the enterprise may be directly controlled by others, and the pledge may also be sold.