Choosing a short-term bank loan is more reliable and the interest is very low.
Please refer to /daikuan/2 1.htm for the latest interest rate of ICBC loans.
Short-term loans are generally used for the liquidity needs of the borrower's production and operation.
The currencies of short-term loans include RMB and major convertible currencies of other countries and regions. The term of short-term working capital loans is generally about half a year, and the longest is no more than one year; Short-term loans can only be extended once, and the extension period cannot exceed the original period.
The loan interest rate is determined according to the interest rate policy formulated by the People's Bank of China and the floating range of the loan interest rate, according to the nature, currency, use, method, term and risk of the loan, among which the foreign exchange loan interest rate is divided into floating interest rate and fixed interest rate. The loan interest rate is indicated in the loan contract, which customers can check when applying for a loan. There is a penalty interest for overdue loans.
The advantages of short-term loans are relatively low interest rates and relatively stable capital supply and repayment. The disadvantage is that it cannot meet the long-term capital needs of enterprises. At the same time, because short-term loans use fixed interest rates, the interests of enterprises may be affected by interest rate fluctuations.
(1) Self-compensating loan
Self-settlement loans are usually used for enterprises to purchase inventory and repay it with cash from the sale of inventory. This kind of loan promotes the normal cash flow within the enterprise. The specific process is as follows:
(1) Purchase raw materials, semi-finished products or finished products with cash and other cash borrowed from banks.
(2) producing products or selling them on shelves.
(3) selling products (usually on credit).
(4) repayment of bank loans by cash or credit payment. In this case, the loan period begins when the enterprise needs cash to buy inventory and ends (generally after 60 ~ 90 days) when the enterprise account has cash to write a check to repay the loan.
(2) Working capital loans
Working capital loans provide short-term credit for enterprises, and the term ranges from a few days to a year. Working capital loans are mainly used to meet the seasonal production peaks and capital needs of corporate customers. The credit line is determined according to the manufacturer's maximum demand for bank loans at any time during the period of 6-9 months. If the borrower repays all or most of the loan before the extension, it can usually be extended.
Working capital loans are usually secured by accounts receivable or inventory, and within the approved credit line, floating or fixed interest is calculated according to the actual borrowed amount. Commitment fees should be paid for unused credit lines, sometimes based on all available funds. Usually, customers are also required to keep the compensatory deposit balance (compen—satingdepositbalance), and the minimum amount is determined according to a certain proportion of the credit line.
(3) temporary construction financing
Temporary construction financing is used to support the construction of houses, apartments, office buildings, shopping centers and other permanent buildings. Although the buildings involved are permanent, the loan itself is temporary. Loans provide funds for builders to hire workers, lease construction equipment, purchase building materials and arrange land. When the construction expires, the bank loan is usually repaid by a longer-term mortgage loan issued by another lender (other banks or non-bank financial institutions). Under normal circumstances, banks will only issue loans to customers if the builders or land developers have obtained the mortgage loan pledge, so as to ensure the long-term financing of construction projects after the project is completed.
(4) Financing by securities firms
Securities dealer financing is used to provide short-term financing for government and private securities dealers to buy new securities and hold existing securities portfolios until they are sold to customers or the securities expire. This kind of loan is guaranteed by government securities held by dealers, and its quality is very high. At the same time, the loan period of brokers is generally short, from overnight to several days. If the credit market is tight, banks can quickly recover their funds or issue new loans at higher interest rates.
(5) Asset-secured loans
Asset-based loan is a kind of loan secured by short-term assets that enterprises expect to convert into cash in the future. The pledged assets are generally accounts receivable and inventory of raw materials or finished products. Banks issue loans according to the percentage of enterprise accounts receivable or inventory value.
In asset-backed loans, the borrower retains the ownership of the mortgaged assets, and sometimes gives the ownership to the bank, so the bank bears the risk that some of these assets cannot be repaid on time. The most common example of this arrangement is factoring, in which banks actually assume the responsibility of collecting customers' accounts receivable. Because of the extra risks and expenses, banks usually charge higher loan interest rates and lend at a lower ratio than the assets guaranteed by customers.