Loan recovery means that enterprises have enough cash flow to repay the loan principal and interest. If the enterprise can't repay the loan on time, it will produce overdue fees and credit risks, which will lead to the decline of the credit rating of the enterprise and even affect further financing. For financial institutions, loan recovery is one of the important links in capital operation. It can not only ensure the financial security of financial institutions, but also directly affect the asset quality and performance of financial institutions.
The importance of loan recovery lies in its relationship with the stability of the whole financial industry and the survival and development of enterprises. Financial institutions need to reduce the risk of non-performing loans through appropriate post-loan management to ensure the healthy operation of the system. For enterprises, doing a good job in loan recovery can not only improve their credit rating, but also provide more possibilities for future financing and promote their business development. Therefore, loan recovery needs the joint efforts of all parties to ensure the healthy development of financial markets and a virtuous circle of enterprises.