I. Functional definition

Working capital loans are loans issued to meet the temporary and seasonal capital needs of customers in the process of production and operation, and to ensure the normal production and operation activities, or loans issued by banks to borrowers to meet the long-term average demand for working capital in the process of production and operation.

Second, product introduction

Working capital loans can be divided into temporary working capital loans, short-term working capital loans and medium-term working capital loans:

1. Temporary working capital loan: The term is within 3 months (inclusive), which is mainly used for the temporary capital demand of enterprises to purchase goods at one time and to make up for the shortage of other payment funds.

2. Short-term working capital loan: the term is from 3 months to 1 year (excluding 3 months, including 1 year), which is mainly used for the working capital needs of normal production and operation of enterprises.

3. Medium-term working capital loan: the term is 1 to 3 years (excluding 1 year, including 3 years), which is mainly used for the capital needs of normal production and operation of enterprises.

Third, the applicable object

Working capital loans are highly liquid and suitable for industrial and commercial enterprises with short-term and medium-term capital needs. Under normal circumstances, according to the loan management policy of "safety, liquidity and profitability", banks make decisions on whether to lend, whether to lend more or less, the loan term and interest rate after investigating and approving the credit status and loan methods of customers.

Medium-term working capital loan is suitable for customers with normal production and operation, good growth, marketable products, profitable operation, no bad credit record and high credit rating. Customers who can provide full low-risk guarantee are not restricted by credit rating.

IV. Bidding Conditions

According to the general principles of loans, the loan object should be an enterprise (institution) legal person, other economic organizations, individual industrial and commercial households or a natural person with China nationality and full civil capacity.

The basic conditions that a borrower should have include:

1. Abide by the credit and have the ability to repay the principal and interest on schedule, and the original loan interest payable and the loan due have been paid off;

2 except for natural persons, the annual inspection shall be handled by the administrative department for industry and commerce (competent authority).

3. basic account or general deposit account has been opened;

4. Unless otherwise stipulated by the State Council, the accumulated amount of foreign equity investment of limited liability companies and joint stock limited companies shall not exceed 50% of their net assets;

5. The asset-liability ratio meets the requirements of the lender;

6. The ratio between the owner's equity of an enterprise legal person applying for medium and long-term loans and the total investment required for new projects shall not be lower than the capital ratio of investment projects stipulated by the state.

In any of the following circumstances, China Industrial and Commercial Bank shall not grant loans:

1. Does not have the qualification and basic conditions of the loan entity;

2 production, operation or investment in products and projects prohibited by the state;

3. Violating the provisions of the State on foreign exchange control;

4. The construction project has not obtained the approval document, which shall be reported to the relevant departments for approval in accordance with state regulations;

5 production, operation or investment projects without the permission of the environmental protection department;

6. In the process of institutional changes such as contracting, leasing, joint venture, merger (merger), cooperation, division, paid transfer of property rights, shareholding system reform, etc., the original loan debt is not paid off, the original loan debt is implemented or the corresponding guarantee is provided;

7. There are other serious illegal business practices.

Five, the main varieties of working capital loans

1. Working capital revolving loan:

The lender and the borrower sign a loan contract at one time, and within the validity period stipulated in the contract, the borrower is allowed to withdraw money in installments, repay the loan one by one, and recycle the loan.

2. Zero compensation liquidity loan:

A working capital loan that customers can withdraw money in one lump sum and repay in installments.

3. Company account overdraft:

According to the customer's application, the overdraft limit of the account is approved, and when the deposit in the settlement account is insufficient, it is allowed to overdraw directly within the approved overdraft limit to obtain credit funds.

4. Medium-term working capital loans:

Refers to the working capital loans issued by commercial banks to borrowers with a term of one to three years (excluding one year and three years), which are mainly used for the normal production and operation of enterprises.