How to analyze whether a business can borrow from the bank

The most important thing is to look at the financial strength of this business, the purpose of the borrowing, the ability of the business to make a profit in the future, to put it bluntly, is a look at whether it can be safely recovered, and then another is to look at the ability to get a better return, which a better financial statement is a big role, you have to find a way to make the bank believe.

Enterprises need to have a certain amount of their own funds, collateral (subject to valuation by an appraisal company), provide a balance sheet, bank deposits, the bank will also have to be able to prove the ability to repay the loan, creditworthiness is also an aspect of the assessment. It also depends on what kind of loan you are applying for, long term or short term. Some banks require collateral in addition to pledges, depending on the specific bank.

Loans to grasp the four criteria: the main qualification (what the enterprise is doing, what can be done);

1. borrowing purposes (corresponding to different purposes have different loan products corresponding to the different valuation methods because it involves the risk exposure as well as);

2. repayment ability, also known as the first source of repayment (that is, whether the enterprise can afford to pay the money involved in balance sheet, income statement, cash flow statement, bank balance sheet, cash flow statement, cash flow statement, cash flow statement, cash flow statement, cash flow statement, cash flow statement, cash flow statement, cash flow statement and other information, and the ability to repay the money. The first is to make sure that you are able to pay back the money you owe, and that you are able to do so with a balance sheet, an income statement, a cash flow statement, and an on-site and off-site investigation of the business' ability to pay back the money you owe);

3. The second is also known as a guarantee, and there are three types of guarantees: mortgages, pledges, and assurances.

Extended information:

What are the terms and conditions of a business loan from a bank? Analysis of the conditions of enterprise loans to the bank

1, must be approved by the State Administration for Industry and Commerce set up, registered, holding a business license;

2, the implementation of independent economic accounting, self-management, self-supporting profit and loss. That is, the enterprise has the power to independently engage in production, commodity circulation and other business activities, independent operating funds, independent financial plans and accounting statements, relying on its own income to compensate for expenditures, independently plan for profit and loss, and independently enter into contracts for purchases and sales to the outside world;

3, a certain amount of its own funds;

4, comply with policies and decrees and bank credit, settlement management system, and in accordance with the provisions of the basic account and general account in the bank. In the bank to open a basic account and general deposit accounts;

5, product market;

6, production and operation to be effective;

7, do not squeeze the misappropriation of credit funds;

8, scrupulous adherence to the credit and other ten items.

The following conditions should also be met:

1, the ability to repay the principal and interest on time, that is, the original loan principal and interest payable has been repaid, not repaid has been done by the bank recognized repayment plan;

2, by the administration for industry and commerce for the annual inspection formalities;

3, the balance sheet ratio in line with the bank's requirements and so on.

Different loan conditions for different types of loans:

After meeting the above basic requirements, enterprises can independently choose the type of loan that suits their characteristics. Two of the most common types of loans are: enterprise mortgage and enterprise credit loans.

Banks should analyze what indicators of small and medium-sized enterprise loans

Many small and medium-sized enterprises are facing the biggest problem is the capital, the amount of banks and financial institutions, the audit is strict, so before applying for a business loan to the reference of the following indicators:

1, the business income of the enterprise, the amount of tax. The tax amount is mainly to see the enterprise's value-added tax and enterprise income tax these, at the same time will also analyze whether the business income is stable, will not be compared with last year there is a significant decline in the phenomenon.

2, the operation process, will inevitably encounter some economic, legal, business if there is litigation phenomenon, the bank is able to check the announcement of the court and the referee's documents. If there is a lawsuit, divided into closed or open cases, some banks will ignore the closed cases, but due to the machine has difficulty in recognizing, appeared even if it is the plaintiff, will trigger the phenomenon of veto.

3, mainly look at the upstream suppliers and downstream customers, to see the stability of the industry chain upstream and downstream of the enterprise business, the enterprise itself is whether the customers are some high-quality customers.

4, the enterprise history of change is mainly to see the enterprise in the past year there is no change of shareholders, changes in the legal person, as well as some of the main business and other aspects of the change, especially the change of shareholders, the general banks need to change a certain period of time before you can apply for small and medium-sized enterprise credit loans.

5, small and medium-sized enterprise owner is not a legal person, let others to do the legal person, the legal person 0 share, such a phenomenon is very common. In the era of big data, much of the associated information can already be seen at a glance, the proxy shareholding or through a complex corporate structure to the holding company, often automatically rejected by the system.

Answer time: 2021-11-11, the latest business changes please refer to the official website of Ping An Bank announced subject.

What financial analysis does a bank do when lending to a business?

Conducting financial analysis: understanding the debt servicing capacity, profitability, and operating capacity of an enterprise in terms of its financial data, and verifying whether the enterprise has the ability to repay the principal and interest of the loan. Understand whether the enterprise has other large payment matters may crowd the solvency.

Conducting non-financial analysis: To understand whether the business of the enterprise has a greater risk, including policy risk, legal risk, moral risk and other risk factors that may threaten the solvency of the enterprise. And according to the enterprise's past transaction status to determine the credit status of the enterprise, whether it is the case that the unit can provide loans, and belong to the specific which loan level, is likely to affect the loan amount and interest rate.

What are the advantages and disadvantages of enterprise bank loans

A bank loan benefits

1, more preferential policies, the state for small and medium-sized enterprise support policy is still a lot of each bank has also introduced a variety of preferential policies to respond to the call of the state, and thus slow down the economic pressure on the enterprise.

2, the bank loan speed, if the submission of materials to meet the requirements of the bank, and collateral or guarantor to meet the standard, you can quickly get the required funds.

3, the interest rate cost is lower, compared to other types of loan companies or institutions, the bank loan interest rate is lower, which can reduce the cost of repayment for small and medium-sized enterprises.

4, less cost. Relative to other financing tools, bank loans are the lowest cost of a bank loan interest rate depends on the specific circumstances, generally speaking interest rates higher than the preferential interest rate for small business loans; low credit rating business loan interest rates may be higher than the credit rating of the business loan interest rates; medium- and long-term loan interest rates are higher than the interest rate on short-term borrowing and so on. Taken together, bank loan rates still have a comparative advantage.

5, stable source of funds. Due to the strength of the bank, sufficient funds, the source of funds is also relatively stable. Small and medium-sized borrowing applications, as long as through the bank's review, signed a loan contract with the bank, and to meet the conditions of loan disbursement, the bank is generally always able to provide funds to enterprises in a timely manner to meet the financing needs of enterprises.

Two, the shortcomings of the bank loan

1, more formalities, in the bank for the loan business is relatively speaking more formalities, cumbersome.

2, collateral requirements are more stringent, bank loans for small and medium-sized enterprises need collateral or third-party guarantee, and its collateral requirements are strict.

3. Higher credit requirements. Enterprises and corporate entities need to have a high credit history. Otherwise it is difficult to pass the audit.