Borrowing and receiving accounts in advance means that the company provides products or services to customers and receives a certain amount of money in advance, but does not provide them with corresponding products or services. On this basis, the company can apply for loans from banks and other financial institutions, borrow funds with advance receipts as collateral, and obtain operating funds. The advantage of this is that you can get the funds in advance and alleviate the company's lack of liquidity. The interest income paid by borrowing can be included in the cost as a financial expense, reflecting the actual operating cost and financing cost of the company.
Interest income is not only the cost for companies to obtain funds, but also the way for banks or other financial institutions to obtain financial returns. Therefore, when choosing a bank or financial institution, the company needs to comprehensively consider the loan interest rate, loan term, loan amount, repayment method and other factors, and reasonably manage the use of advance accounts and loans according to its own operating conditions and development needs.