Working capital loans obtained from banks are generally not more than one year, which belong to short-term working capital loans and should be accounted for through short-term borrowing subjects. After receiving the loan, you should set corresponding detailed accounts according to the loan bank, and the entries are as follows:

Debit: bank deposit

Loans: short-term loans -XX Bank

Working capital loan is a loan issued to meet your short-term capital demand in production and operation and ensure the normal production and operation activities. The term of working capital loan is generally divided into one to three years, which can be divided into secured loan and credit loan according to the loan method.

Applicable object of working capital loan

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.

So can current assets be loaned?

In the past, according to the risk management and control standards of commercial banks' credit supply, liquid assets have been unable to obtain financing from banks because they failed to meet the standards of "effective collateral". In order to turn "current assets" into "effective collateral", the key is to find a reputable enterprise that is willing to act as a third party to guarantee the mortgage enterprise.

According to the operation mode of financial warehousing, warehousing enterprises will conduct professional warehousing management of the liquid assets pledged by enterprises according to the entrustment of banks. Will regularly report the situation to the bank, and notify the enterprise to replenish the goods in time, so that the collateral is not lower than the value agreed in the contract. If there is a risk that the enterprise cannot repay the loan, the warehousing enterprise is responsible for realizing the deposit and safeguarding the interests of the agreed party.

Working capital loan business process

1. Apply for a loan. Customers apply for working capital loans from our bank, and provide basic information, financial statements and other relevant materials (if necessary) of customers and guarantee subjects.

2. Sign the loan contract and related guarantee contract (if necessary). After the loan application is approved by our bank, both parties and related parties (such as guarantors) sign relevant legal documents.

3. Implement the guarantee according to the agreed conditions and improve the guarantee procedures (if necessary). Where the guarantee conditions are involved, customers and interested parties shall go through the mortgage registration, pledge delivery (or registration) and other related guarantee procedures, and if notarization is needed, notarization procedures shall also be performed.

4. Issue loans. After all the formalities are completed, we will issue the loan in time.

5. Use loans. The customer reasonably controls the loan funds according to the loan purpose agreed in advance.

6. Repay the loan. The customer repays in full and on time as agreed.

Working capital loan budget

The influencing factors of working capital of borrowers mainly include cash, inventory, accounts receivable, accounts payable, accounts received in advance and accounts received in advance. On the basis of investigation, predict the changes of various capital turnover times and reasonably estimate the borrower's liquidity. In actual calculation, the borrower's liquidity demand can refer to the following formula:

Liquidity = sales revenue of last year ×( 1- sales profit rate of last year )× (1+estimated annual sales revenue growth rate)/turnover times of liquidity.

In which: turnover times of working capital =360/ (inventory turnover days+average collection period-accounts payable turnover days+prepayments turnover days-prepayments turnover days).

Turnover days =360/ turnover times

Accounts receivable turnover times = sales revenue/average accounts receivable balance

Turnover times of accounts received in advance = sales revenue/average balance of accounts received in advance

Inventory turnover times = cost of sales/average inventory balance

Prepayment turnover times = cost of sales/average prepayment balance

Accounts payable turnover times = cost of sales/average accounts payable balance