The supply of credit funds in China can be divided into three ways, namely, direct lending, indirect lending and trading loans.
Direct loan method
Direct loan is a way for banks to directly issue loans to reasonable funds of enterprises in the course of operation. This loan method has the following three characteristics:
First: loans are used for payment in spot transactions.
Second, the loan supply changes with the inventory of enterprise materials and commodities, which is manifested in the increase of inventory, the direct increase of loans, the decrease of inventory and the direct decrease of loans.
Third: Banks provide loans directly to local property buyers.
Most bank loans in China are provided in this way. Such as industrial and commercial enterprise production, commodity turnover loans, short-term and medium-term equipment loans, etc.
Indirect loan method
It is an indirect way for banks to lend money to enterprises through bill discount.
The paper here refers to commercial paper. Commercial paper is a kind of written debt certificate with a certain format, which is held by creditors who sell goods with commercial credit to guarantee their creditor's rights. It stipulates a certain amount, and the holder can unconditionally ask the drawer or acceptor (to confirm payment) to pay when it expires.
Commercial paper can be divided into commercial promissory notes and bills of exchange. Commercial promissory note is a payment promise issued by the debtor to the creditor (drawer) to pay the money within a certain period of time. A commercial bill is a payment order issued by the creditor (drawer) to the debtor (acceptor) to pay the holder within a certain period of time. Discounting commercial bills means that an enterprise sells its unexpired promissory notes or bills to a bank in urgent need of funds, and the bank deducts the interest from the bill discount date to the maturity date from the bill denomination (principal and interest), and pays the balance to the enterprise in cash. When the bill expires, the bank will collect money from the drawer or acceptor (the purchasing enterprise) according to the bill.
Obviously, in this financing behavior, on the surface, it is the bank that finances the holder, but in fact it is the bank that finances the drawer or acceptor. Therefore, this financing method is an indirect lending method based on direct financing (referring to the direct financing behavior between enterprises).
Indirect lending by banks through bill business is conducive to the commercialization of commercial credit, thus bringing commercial credit into the track of bank credit. The development of discount and rediscount business is conducive to the fund adjustment and macro-control among regions, banks, central banks and specialized banks, and is also conducive to the formation, development and perfection of financial markets.
Seller-buyer credit
Seller's credit and buyer's credit are two internationally accepted export credit methods. In order to support and expand exports and strengthen international competition, many countries in the world encourage their banks to open export credit business to meet the financial needs of foreign importers to pay for goods. Among them, the loan provided by domestic banks to domestic exporters (sellers) is called seller's credit, and the loan provided by domestic banks to foreign importers (buyers) or importing banks is called buyer's credit.
China applies seller's credit and buyer's credit, which are commonly used in international trade, to domestic bank credit activities. Among them, seller's credit is the main way.
Domestic seller's credit is a kind of credit method in which the seller sells goods on credit, the buyer pays in installments and the bank provides loans to the seller. After the buyer pays off the payment in installments, the seller returns the bank loan. The characteristics of seller's credit are as follows: in order to support local enterprises to develop production and expand the sales market, banks lend to seller's units within their jurisdiction; Loan issuance and recovery are based on the order contract between the buyer and the seller; Commercial credit of credit sale and installment payment between enterprises is included in bank credit.
The significance of banks using seller's credit to supply funds lies in:
First of all, the coordination of bank credit and commercial credit is conducive to financial macro-control and micro-invigorating:
Second, it is conducive to giving full play to local production advantages, expanding sales, and developing and forming a unified domestic market.
Third, the seller produces according to the requirements of the order, ensuring the realization of the product value and avoiding the backlog. The buyer obtains the required equipment or products on time, and then repays them in installments after obtaining the proceeds, so that the connection between production and sales is beneficial to both buyers and sellers.
Fourth, it is conducive to promoting the horizontal adjustment of funds and promoting the horizontal connection of the national economy.