Do SMEs in Huizhou City, Guangdong Province seek loans from banks or finance companies?
First of all, we should choose formal channel loans, needless to say, banks. Financial companies should know their formality in advance to see if they have the qualification to lend, and then compare the choice of bank loans or institutional loans, which can generally be compared from three aspects.
1, Proportional threshold: For the same type of loan, the threshold of banks and finance companies will be different, and the threshold of banks is relatively high, such as the qualification, revenue capacity and self-owned funds of the borrowing enterprises. As long as one party is unqualified, it may refuse to lend; The threshold for institutional loans is much lower. Usually, the overall qualification of the enterprise passes the test, even if there are some minor problems, it is possible to lend money.
2. Specific interest: Bank interest is generally executed according to the benchmark interest rate of the central bank. In addition, the central bank will also have various discount policies. Choosing bank loans will be more cost-effective than institutional loans. After all, the biggest advantage of low interest rate is well known. Under the same loan amount and term, the interest of a finance company may be several thousand higher than that of a bank loan.
3. Specific speed: including the speed of loan approval and lending, finance companies will have an advantage in this respect. First, there are many companies that borrow money from banks, and they often have to queue up. Second, banks need to conduct a detailed investigation and verification of the company's nature and revenue, and the whole process will take at least half a month. Some financial institutions can apply for automatic approval online, and basically they can lend money within 24 hours.