Non-performing loans of enterprises refer to the inability of banks to recover the loan principal and interest on time due to their inability to repay or default when enterprises apply for loans from banks and other financial institutions. Non-performing loans of enterprises, also known as non-performing loans, are a kind of risk and loss for banks and enterprises.

There are many reasons for non-performing loans of enterprises, including poor management, bad market environment, great competitive pressure, excessive expansion and breach of contract. These reasons will reduce the income of enterprises, unable to repay loans, leading to the emergence of non-performing loans.

In order to avoid the occurrence of non-performing loans, enterprises should strengthen management in finance, operation and risk control. In the course of business operation, enterprises should improve their business environment, improve their management level, strengthen their marketing and competitiveness, and enhance their profitability. In financial management, enterprises should formulate a scientific and reasonable financial budget, carry out effective risk management and prevent the emergence of non-performing loans. At the same time, enterprises need to establish a sound internal control system to effectively supervise and manage loans to ensure the risk and safety of loans.