Why do some units not lend directly to banks, but to other units through trust companies, and the loan interest rate is much higher?
in principle, if you can get loans directly from banks, enterprises will choose to borrow from banks. If they can't get loans from banks, enterprises will choose other financing channels. Trust companies are one of the financing options for enterprises. Compared with banks, trust companies can provide financing to enterprises in a more flexible way, but the financing cost is also higher than that of banks. Similarly, if the conditions of enterprises are relatively poor, they may only find private financing channels, and the financing cost is even higher.