Loans are a type of financing.

There are many ways to finance, the simplest is to borrow money. There are two main types: debt and equity. Debt financing is financing with collateral. Bank loans require you to provide collateral, and the loan amount is determined based on the value of the collateral. Equity financing is where you give up part of your company's equity in exchange for financing.

There are many specific financing methods:

1. Borrowing (that is, borrowing money, with or without interest)

2. Loans (banks, loan sharks) )

3. Equity financing

4. Trust financing

5. Insurance financing

6. Listing

Extended information:

Common forms

Bank loans

Banks are the main financing channel for enterprises. According to the nature of funds, they are divided into three categories: working capital loans, fixed asset loans and special loans. Special loans usually have specific purposes, and their loan interest rates are generally more favorable. The loans are divided into credit loans, guaranteed loans and bill discounts.

Stock financing

Stocks are permanent, have no expiration date, do not need to be returned, and have no pressure to repay principal and interest, so financing risks are relatively small. The stock market can promote enterprises to transform their operating mechanisms and truly become legal entities and market competition entities that operate independently, are responsible for their own profits and losses, self-development, and self-restraint. At the same time, the stock market provides a broad stage for asset restructuring, optimizing corporate organizational structures, and improving corporate integration capabilities.

Bond Financing

Enterprise bonds, also known as corporate bonds, are securities issued by enterprises in accordance with legal procedures and agree to repay principal and interest within a certain period of time. They represent the bond-issuing enterprise and There is a creditor-debt relationship between investors. Bond holders do not participate in the operation and management of the enterprise, but have the right to recover the agreed principal and interest on schedule. In the event of corporate bankruptcy and liquidation, creditors have priority over shareholders in claiming the remaining property of the company. Corporate bonds, like stocks, are securities and can be freely transferred.

Financial leasing

Financial leasing means that the lessor purchases the leased items from the supplier based on the lessee’s selection of suppliers and leased items and provides them to the lessee for use. A financing method in which the party pays the rent in installments within the period specified in the contract or contract.

Financial leasing, through the combination of financing and property financing, has the dual functions of finance and trade. It plays a very obvious role in improving the financing efficiency of enterprises and promoting and promoting the technological progress of enterprises. Financial leases include direct purchase leases, sale-leasebacks and leveraged leases. In addition, there are various leasing forms such as the combination of leasing and compensation trade, the combination of leasing and processing and assembly, and the combination of leasing and underwriting. The financial leasing business has opened up a new financing channel for the technological transformation of enterprises. It adopts a new form of combining financing and property, which speeds up the introduction of production equipment and technology. It can also save the use of funds and improve the utilization rate of funds.

Overseas Financing

The overseas financing methods available to enterprises include loans from international commercial banks, loans from international financial institutions, and corporate bond and stock financing businesses in major overseas capital markets.

Pawn Financing

Pawn is a financing method that uses physical objects as collateral and obtains temporary loans in the form of transfer of physical property ownership. Compared with bank loans, pawn loans have high costs and small loan sizes, but pawns also have advantages that bank loans cannot compare with. First of all, compared with banks’ almost demanding credit requirements for borrowers, pawn shops have almost zero credit requirements for customers. Pawn shops only focus on whether the pawned items are genuine. Moreover, generally commercial banks only mortgage real estate, while pawn shops can pledge both movable and real estate. Secondly, the starting point for pawning items at a pawn shop is low, and items worth a thousand yuan or a hundred yuan can be pawned. Contrary to banks, pawn shops focus more on serving individual customers and small and medium-sized enterprises. Third, compared with bank loans, which have complicated procedures and long approval cycles, pawn loan procedures are very simple and can be obtained immediately. Even real estate mortgages are much more convenient than banks. Fourth, when a customer borrows money from a bank, the purpose of the loan cannot exceed the scope specified by the bank.

Pawn shops, on the other hand, do not ask about the purpose of the loan, and the money can be used very freely. Repeatedly, the capital utilization rate has been greatly improved.

P2C Internet small and micro financial financing platform

P2C lending model, people to

company, small and medium-sized enterprises are borrowers, but corporate information and corporate operations are relatively fixed , there are stable cash flow and repayment sources, the information is easy to verify, and the default cost of enterprises is much higher than that of individuals. It requires guarantees and mortgages, and the security is relatively better. Investors can benefit from the high annualized returns of crowdfunding and financial management, and borrowing companies can achieve low financing costs and flexible loan terms, and can also make the efficiency of borrowing more obvious. At the same time, the borrowing cycle and the project cycle are more closely matched.

The IMF

The method is fake stocks and hidden loans. The so-called fake stock loan, as the name suggests, means that the investor invests in the project by taking shares but does not actually participate in the management of the project. When a certain period of time is reached, the shares will be withdrawn from the project. This method is mostly used by foreign funds. The disadvantage is that the operation cycle is long, and the company's shareholder structure and even the nature of the company must be changed. There are many foreign funds, so if you invest in this way, the nature of the domestic company will be changed to a Sino-foreign joint venture.

Bank Acceptance

In order to conclude a transaction, a financing enterprise can apply to the bank for the issuance of a bank acceptance bill. After review and approval, the bank will formally accept the bank acceptance contract. The accepting bank must indicate on the acceptance bill Sign or seal to indicate acceptance. In this way, a bank acceptance bill is called a bank acceptance bill. Specifically, a bank acceptance bill is a bank guarantee for the buyer. The seller does not have to worry about not receiving the payment, because the bank will definitely pay the payment due to the buyer's guarantee when it expires.

The advantage of bank acceptance bill financing is that companies can achieve short, frequent and fast financing, which can reduce corporate financial costs.

The investor transfers a certain amount, such as 100 million yuan, to the company account of the project party, and then immediately asks the bank to issue a bank acceptance of 100 million yuan. The investor takes away the bank acceptance. This method of financing is greatly beneficial to the investor, because he can actually use 100 million yuan several times. He can take the bank acceptance of 100 million yuan and transfer it to a bank in another place for another 100 million yuan. At least 80 can be discounted. But the question is whether the bank can issue an acceptance of 100 million yuan if the company has 100 million yuan in its account. It is possible that only banks that offer 80 to 90 will accept it. Even if you issue a bank acceptance of 100, it is still a question of how much of the funds in the company account the bank allows you to use. This depends on the level of the company and its relationship with the bank. In addition, the biggest disadvantage of acceptance is that according to national regulations, bank acceptance can only be issued for a maximum of 12 months. Most places are only open for 6 months. That means you have to renew your visa every 6 months or 1 year. It will be troublesome if the payment takes a long time.

Direct deposit

This is the most difficult financing method to operate. Because direct deposit itself is against bank regulations, the relationship between the company and the bank must be particularly good. The investor opens an account at the bank designated by the project party and deposits the designated amount into his account. Then sign an agreement with the bank. Promise not to misappropriate the money within a specified period of time. Based on this amount, the bank will provide the project party with a loan of less than or equal to the same amount. Note: The commitment here is not a pledge to the bank. I don't agree to use this money as a pledge. What is agreed to be pledged is another financing method called large pledge deposit. Of course, that financing method also has its violations of bank regulations. It means that the bank needs to sign a commitment letter guaranteeing that the funds will be collected and closed 30 days before expiration. In fact, after he obtains this thing, he can take it to a bank elsewhere for refinancing.

Bank Letter of Credit

The state has a policy that bank letters of credit issued by global commercial banks such as Citigroup that agree to provide financing to enterprises are deemed to have the same balance in the enterprise's account. amount of deposit. In the past, many companies used this bank letter of credit to make money. Therefore, the national policy has undergone slight changes, and it is difficult for domestic enterprises to use this method to raise funds. Only foreign-owned enterprises and Sino-foreign joint ventures are allowed. Therefore, if domestic enterprises want to use this method to raise funds, they must first change the nature of the enterprise.

Entrusted loan

The so-called entrusted loan means that the investor sets up a special account in the bank for the project party, then transfers the money to the special account, and entrusts the bank to lend money to the project party. This is a relatively easy-to-operate form of financing. Usually, the review of the project is not very strict, and the bank is required to make a commitment letter responsible for collecting interest and returning the principal to the project party every year. Of course, those who do not repay the principal only need to promise to collect interest every year.

Direct investment

The so-called direct investment is direct investment. This strict review of projects often requires mortgages or bank guarantees of fixed assets. Interest rates are also relatively high. Mostly short term. The lowest I have come across is an annual interest rate of 18. Generally it is above 20.

The eighth financing method is hedging funds. There is a kind of entrusted loan on the market that does not repay principal or interest, which is a typical hedging fund.

Loan Guarantee

There are many investment guarantee companies on the market. You only need to pay higher interest than bank interest to get the urgently needed funds.

National funds

Mainly come from the Central Foreign Trade Development Fund. If an enterprise wants to raise funds through this channel, it should be noted that the main contents supported by market development funds are: overseas exhibitions, quality management systems, environmental management systems, software export enterprises and various product certifications, international market promotions, and the development of emerging markets. , training and seminars, overseas bidding, etc., and give priority support to expansion activities in emerging international markets such as Latin America, Africa, the Middle East, Eastern Europe and Southeast Asia.

Reference: Baidu Encyclopedia. Financing