1. What is the difference between working capital loans and fixed asset loans?

According to the different uses of loan funds, loans can be divided into fixed asset loans and working capital loans. Fixed asset loans are loans issued by banks to meet the funding needs of enterprises for fixed asset investment activities. They are mainly used for medium and long-term domestic and foreign currency loans for the construction, purchase, renovation of fixed asset projects and the construction of corresponding supporting facilities. Enterprise fixed asset investment activities include: capital construction, technological transformation, development and production of new products and other activities, as well as related house purchase, engineering construction, technical equipment purchase and installation, etc. Working capital loans are loans issued to meet people's short-term capital needs in the production and operation process and ensure the normal progress of production and operation activities. According to the loan term, it can be divided into short-term working capital loans with a term of less than one year and medium-term working capital loans with a term of one to three years. As an efficient and practical financing method, working capital loans have the characteristics of short loan period, simple procedures, strong turnover and low financing cost.

2. What are "fixed asset loans and working capital loans"?

Fixed asset loans are loans issued by banks to enterprises for investment in fixed assets. Before the reform of the economic system, my country's banks only extended loans to enterprises' working capital. State-owned enterprises' fixed assets were allocated by the state finance, while collective enterprises' fixed assets were self-financed.

In order to meet the needs of economic system reform, starting in 1979, the People's Bank of China began to issue short- and medium-term equipment loans for enterprises to purchase key equipment with low investment and quick results.

Working capital loans are loans issued to meet the short-term capital needs of producers and operators during the production and operation process and to ensure the normal progress of production and operation activities. According to the loan term, it can be divided into short-term working capital loans with a term of less than one year and medium-term working capital loans with a term of one to three years.

Extended information:

Fixed asset loans are relatively stable and fixed. Loan repayment plans and long-term loans can be included in the budget. Can assist in purchasing assets that would otherwise be unaffordable. The purchased asset will become collateral for the loan.

According to their different purposes, working capital loans also include other types of loans of securities companies, mainly including real estate mortgage loans, certificates of deposit, guaranteed loans and credit loans, etc., used to solve the purchase of fixed assets of securities companies and the decoration of business departments. Wait for the company's development needs.

Working capital loans are divided into two types: RMB and foreign currency. The loan period is mainly determined by the borrower and the lender through negotiation based on the borrower's production and operation cycle, repayment ability and the lender's financial strength. It generally does not exceed 1 year, and the maximum period under special circumstances does not exceed 3 years (inclusive).