The reason for borrowing is that others borrow temporarily; Current accounts are sometimes actually loans, but there are other reasons that can also form current accounts. And this essential difference is not very strict. (In fact, most of the current transactions between units are temporary revolving loans.)

The reason why the unit asked to change "loan" into "current account" is because of interest. According to the regulations, it is not allowed to directly borrow funds between non-financial institutions (that is, between enterprises). To borrow money, you need to entrust a loan through the bank. At the same time, the lender can charge the corresponding loan interest, and the borrower also needs to pay a certain amount of interest on the use of funds. And this interest income needs to enter the enterprise income account and pay income tax. However, the payment is different now. Under normal circumstances, although interest will be paid, the current payment is only an act between enterprises and will not involve banks. Therefore, not only the procedures are simple, but also the interest income will be more hidden, and the income tax will be evaded by sharing the expenses.