According to different loan purposes and risk characteristics, corporate loan business types include the following:
1. working capital loan
According to the Interim Measures for the Management of Working Capital Loans issued by the China Banking Regulatory Commission, working capital loans refer to local and foreign currency loans issued by commercial banks to enterprises (institutions) or other organizations that can be used as borrowers as stipulated by the state for the daily production and operation turnover of borrowers.
2. Fixed assets loans
According to the Interim Measures for the Management of Fixed Assets Loans issued by the China Banking Regulatory Commission, fixed assets loans refer to local and foreign currency loans issued by commercial banks to enterprises (institutions) or other organizations that can act as borrowers as stipulated by the state for the borrower's investment in fixed assets. At the same time, it is stipulated that no matter how the types and titles of loans are divided within commercial banks, as long as they are used for fixed assets investment, they are all included in the category of "fixed assets loans".
3. Project financing
According to the project financing business guidelines of China Banking Regulatory Commission, project financing refers to a loan that meets the following characteristics: (1) This loan is usually used to build one or a group of large-scale production facilities, infrastructure, real estate projects or other projects, including refinancing of projects under construction or already built; (2) Borrowers are usually enterprises and institutions established specifically for project construction, operation or financing, including existing enterprises and institutions mainly engaged in project construction, operation or financing; (3) The source of repayment funds mainly depends on the sales income, subsidy income or other income generated by the project, and generally does not have other repayment sources.
4.M&A loan
According to the Guidelines on Risk Management of M&A Loans of Commercial Banks issued by China Banking Regulatory Commission, M&A refers to the transaction behavior of domestic acquirers to merge or actually control the established and continuing target enterprises by transferring existing shares, subscribing for new shares or acquiring assets, and assuming debts. Mergers and acquisitions can be carried out by the acquirer through its wholly-owned or holding subsidiaries (hereinafter referred to as subsidiaries) with no other business activities. M&A loan refers to the loan issued by a commercial bank to the acquirer or its subsidiaries to pay the M&A transaction price.
China Banking Regulatory Commission also has some special risk management requirements for commercial banks to provide M&A loans, including:
(1) has sound risk management and effective internal control mechanism;
(2) The capital adequacy ratio is not less than10%;
(3) The balance of all M&A loans of commercial banks shall not exceed 50% of the bank's net Tier 1 capital in the same period;
(4) The M&A loan balance of a commercial bank to a single borrower shall not exceed 5% of the bank's net Tier 1 capital in the same period;
(5) The ratio of M&A loan to M&A transaction price should not be higher than 60%;
(6) The term of M&A loan generally does not exceed 7 years;
(7) Commercial banks should have professionals who are familiar with M&A-related laws, finance, industry and other knowledge, commensurate with the scale and complexity of M&A loan business.
5. Syndicated loan
(1) definition and role
Syndicated loan, also known as syndicated loan, refers to local and foreign currency loans or credit business provided by two or more banks to borrowers through correspondent banks at the agreed time and proportion on the basis of the same loan conditions and loan contracts.
The banks participating in the syndicated loan are all members of the syndicate. Syndicated members should decide their own credit granting behavior independently according to the principles of "information sharing, independent examination and approval, independent decision-making and risk-bearing", and enjoy corresponding rights and perform corresponding obligations under syndicated loans according to their actual shares.
According to the functions and division of labor in syndicated loans, members of syndicated loans are usually divided into lead banks, agent banks and participating banks. Deputy lead banks and joint lead banks can also be added within the syndicate according to the actual scale and needs, and perform corresponding duties according to the syndicated loan contract.
(2) Bank loan management
The daily management of syndicated loans is mainly the responsibility of the agent bank. The correspondent bank shall track the progress of the project during the existence of the syndicated loan, find out the possible problems of the syndicated loan in time, and notify the syndicate members in writing as soon as possible.
During the existence of the syndicated loan, the syndicated meeting shall be convened by the correspondent bank on a regular basis, or proposed by a certain proportion of the syndicated members according to the syndicated loan contract. The main function of the syndicate meeting is to discuss and negotiate major issues in the management of syndicated loans.
In case of default risk of syndicated loans, the correspondent bank shall be responsible for convening syndicated meetings in time according to the stipulations in the syndicated loan contract, and may set up a syndicated creditor's rights committee to collect, preserve, restructure and dispose of the loans. If necessary, you can apply for arbitration or bring a lawsuit to the people's court.
Banks providing syndicated loans shall regularly submit relevant information on syndicated loans to local banking associations. The contents include: sales volume and holdings of syndicated loans in the primary market, transfer volume in the secondary market, interest rate level, rate level, loan term, guarantee conditions, borrower's credit rating, etc.
6. Trade finance
Trade financing refers to short-term financing or credit facilities provided by banks to importers or exporters related to import and export trade settlement. It is a financing method for enterprises to increase cash flow by using various trade means and financial instruments in the process of trade, including the following:
(1) factoring
Factoring financing means that the seller applies to the factoring bank to buy the accounts receivable between him and the buyer because of selling goods on credit. The seller is jointly and severally liable for the payment due by the buyer, and is also liable for buying back the accounts receivable at the request of the factoring bank. Simply put, it refers to the seller's transfer of its legally owned accounts receivable to the bank to obtain financing, which can be divided into two types: recourse and non-recourse. The former means that when the payer of accounts receivable fails to pay, the bank has the right to claim the unpaid amount from the factoring financing applicant (seller) other than the payer of accounts receivable; The latter means that when the payer of accounts receivable does not pay, the bank can only exercise recourse against the payer of accounts receivable. It is more suitable for trading enterprises with real trade background and legally forming accounts receivable.
(2) Letter of credit
Letter of credit (L/C) refers to the written document that the bank (issuing bank) pays the third party (beneficiary) or its designated party according to the requirements and instructions (of the applicant) or on its own initiative and under the condition of observing the terms of the letter of credit. In other words, a letter of credit is a written certificate of conditional payment issued by a bank.
(3) Forfaiting
Forfaiting refers to the business that merchants and employers buy accepted long-term bills or promissory notes from exporters without recourse, which is usually guaranteed by the bank where the importer is located. It's called a package purchase order, transliterated as forfaiting.
(4) Packaging and lending
Packaged lending, also known as letter of credit mortgage loan, refers to the shortage of funds after the exporter receives a foreign letter of credit, and applies to the bank for a working capital loan in local and foreign currencies with the letter of credit as collateral to meet the funding gap in the process of processing, packaging and transportation of export goods.
(5) Export bills
Export bill refers to the business that banks provide exporters with complete shipping documents under letters of credit as collateral before receiving payment from the issuing bank. Discounting refers to the bank's purchase of unexpired forward bills with recourse to provide customers with short-term financing business. For customers, if they receive foreign exchange at sight, they can apply for export bills; If it is a forward foreign exchange receipt, you can apply for discount when accepting it in a foreign bank.
(6) Import bills of exchange
Import bill of exchange means that after the order under the letter of credit is received and verified correctly, the applicant of the letter of credit cannot pay the bill of exchange in time due to the cash flow relationship, and pledges the documents representing the rights of goods under the letter of credit, and at the same time provides necessary mortgage/pledge or other guarantees, and the bank pays the foreign payment in advance.