Short term loans in ChinabankOr othersfinancial institutionIssued to enterprisesloanA form of, with a term of less than 1 year (including 1 year).Short term borrowings in China are divided intoWorking capital loanTemporaryloan、Settlement loanwait;According to the different ways of borrowing, it can also be divided into guarantee loan, mortgage loanpledgeBorrowingCredit borrowings。
Chinese name
short-term loan
Foreign name
Short-term loans
Loan Term
Within 1 year (including 1 year)
Purpose
The borrower is in production and operationLiquidity needs
Short term loans are generally used in the borrower's production and operationLiquidity needs。
The currencies of short-term loans include RMB and other countries and regionsConvertible currency。Short term working capital loanThe term of is generally about six months, and the longest is not more than one year;The short-term loan can only be extended once, and the extension cannot exceed the original period.
lending rateaccording toPeople's Bank of ChinaPreparedInterest rate policyAnd the floating range of loan interest rate, which is determined according to the difference of loan nature, currency, purpose, method, term, risk, etc., of which the foreign exchange loan interest rate is divided intoFloating interest rateandFixed interest rate。The loan interest rate isLoan contractAs indicated in, customers can inquire when applying for loans.Overdue loansPenalty interest shall be charged according to regulations.
Short term loanadvantageThe interest rate is relatively low, and the fund supply and repayment are relatively stable.The disadvantage is that it cannot meet the needs of long-term funds of enterprises. At the same time, because short-term loans use fixed interest rates, the interests of enterprises may be affected by interest rate fluctuations.
Self liquidating loan is usually used by enterprises to purchase inventory and repay it with cash from selling inventory.This kind of loan facilitates the normal cash circulation within the enterprise.The specific process is as follows:
(1) Use the cash borrowed from the bank and other cash to purchase inventories of raw materials, semi-finished products or finished products.
(2) Produce products or put them on shelves for sale.
(3) Sell products (usually on credit).
(4) Repayment of bank loans with cash or credit payments received.In this case, the term of the loan begins when the enterprise needs cash to purchase inventory, and ends when (generally 60~90 days later) there is cash in the enterprise account to issue a check to repay the loan.
（2） Working capital loan
Working capital loan(working capital loan)Short term credit, the term ranges from a few days to about a year.Working capital loans are mainly used to meet the seasonal peak of production and capital demand of enterprise customers.Credit lineIt is determined according to the maximum demand of the manufacturer for bank loans at any time within 6-9 months.If the borrower has repaid all or most of the loan before the extension, the loan can usually be extended.
Working capital loans are usually secured by accounts receivable or pledged by inventory, and floating or fixed interest is calculated according to the actual borrowing amount within the approved credit line.Commitment fees should be paid for unused credit lines, sometimes in full available funds.Usually also requiresCustomer retentioncompensation Deposit balance(compen - satingdepositbalance), the minimum amount is determined according to a certain proportion of the credit line.
（3） Temporary construction financing
Temporary construction financingUsed to support housing, apartments, office buildingsShopping MallAnd other permanent buildings.Although the buildings involved are permanent, the loan itself is temporary.Loans provide funds for builders to hire workers, rent construction equipment, purchase construction materials and arrange land.At the end of the construction period, the bank loan is usually made by another lender (other banks orNon bank financial institutions）Longer term mortgage payments made.Usually, the bankLand developmentThe loan will be granted to customers only when the company has obtained the pledge of mortgage loan to ensure that the long-term financing of the project can be obtained after the completion of the construction project.
（4） Securities dealer financing
Securities dealer financingIt is used to provide short-term financing for government and private securities dealers to purchase new securities and hold existing securities portfolio until they are sold to customers or the securities mature.Such loans are held by dealersGovernment securitiesAs collateral, the quality is very high.At the same time,stock exchangeThe loan term of commercial banks is usually very short, from overnight to a few days. If the credit market is tight, banks can quickly withdraw funds or issue new loans at a higher interest rate.
（5） Asset backed loans
Asset backed loans(asset based loan) refers to enterprises that are expected to convert into cash in the futureShort term assetsA mortgage loan.Assets pledged are generally accounts receivable and raw materials orFinished productsInventory.The bank issues loans at a certain percentage of the enterprise's accounts receivable or inventory value.
In asset backed loans, the borrowing enterprise retains the right to pledgeOwnership of assetsSometimes the ownership is also handed over to the bank, so the bank bears the risk that part of these assets will not be repaid on schedule.The most common example of this arrangement is factoring, in which case the bank actually undertakes to collect customersAccounts receivableResponsibility.Due to the additional risks and fees, banks usually charge higher loan interest rates and lend at a lower proportion than the customer's guaranteed assets.
enterprise
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definition
Short term loans refer to all kinds of loans borrowed by enterprises from banks or other financial institutions with a term of less than one year (including one year).According to the purpose and purpose, short-term borrowings in China can be divided into several types, mainly includingWorking capital loan, temporary loans, settlement loans, etc.According to the different ways of borrowing, short-term borrowing can also be divided into guarantee borrowing, mortgage borrowingpledgeBorrowingCredit borrowings。
classification
Operating revolving loan: the loan obtained from banks or other financial institutions for the needs of production and operation.When handling the loan, the enterprise shall submit annual and quarterly loan plans to the bank according to relevant regulations. After the bank approves the plans, the borrower shall handle the loan according to the loan receipt.
Temporary loan: short-term loan that is transferred from the enterprise's production turnover or commodity turnover due to seasonal and temporary objective reasons and the normal turnover of funds cannot meet the needs.Temporary loans are subject to the method of "loan by loan verification". The loan term is generally 3 to 6 months. They are used for specified purposes and returned according to the accounting period.
Settlement loan:bank collectionYes, can applyDelegated Collection Commitment Settlementloan.The borrowing amount is usually calculated based on the amount of collection and the agreed discount rate, which is roughly equivalent to the cost of goods sold plus advance paymentFreight and miscellaneous charges。After the enterprise's payment for goods is recovered, the bank will deduct its loan by itself.
Seller's credit: enterprises whose products are listed in the national plan and whose quality is in the leading position in the countryInstallment salesThe loan obtained from applying to the bank for installment sales due to insufficient production and operation bonus.This kind of loan shall be repaid in installments according to the progress of loan recovery, and the term is generally 1 to 2 years.
Advance purchase deposit loan：Commercial enterprisesThe amount borrowed from the bank for the advance purchase deposit for the purchase of agricultural and sideline products.This kind of loan is issued according to the variety specified by the state and the approved planned target, and is managed by a special account. The loan term shall not exceed one year at most.
Special reserve loan: the amount borrowed by commercial wholesale enterprises from banks for the approval of the state to reserve commodities.This kind of loan must be used for a specific purpose, and the loan term shall be determined according to the approved reserve period.
Bill discount loan:Bank acceptanceBill of exchange orCommercial acceptance billIn case of difficulties in business turnover, the term of the loan for bill discount is generally not more than 3 months.If the current loan amount is generally in the formFace amountdeductionDiscount interestThe interest of discount loan is the bill discount interest, which is deducted first when the bank processes discount.
main features
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Compared with medium and long-term loans, short-term loans have the characteristics of short term, small risk and low interest rate.
Credit
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personalRCFIt refers to the application made by a natural person and the guarantee or credit conditions that meet the bank's regulations (generally the house property is used as collateral), and the maximum amount of money to be paid to the borrower upon the approval of the bankLine credit, the borrower can borrow, repay and recycle within the validity period of the linePersonal loanBusiness.
advantage
◆ Balance control, recycling: the loan is balance control. Within the limit and term, the borrower can match the amount used each time. After the loan is repaid, it can continue to be recycled until the maximum balance or expiration;
◆ Super high line: the loan line is only subject to the borrowerCreditAs well as the restriction of guarantee mode, the maximum loan limit can reach 70% of the property appraisal value, which is much higher than the overdraft limit of credit card;
◆ Borrowing and repaying at any time and flexible use of funds: customers can handle it at any time in a flexible way, and so can repayment;
◆ Maximum saving of interest: loan interest is bankbenchmark interest rate(5.31% - 5.94%), the customer does not accrue interest when obtaining the limit, but only calculates the actual number of days when actually using the amount, so that the cost of the customer's use of the amount can be saved to the maximum extent;
◆ Financial management function: It can be used on demand, which can not only solve customers' short-term turnover difficulties, but also not increase the interest of non use loans.
loop
◆ Guarantee mode: mortgage, pledge, guarantee and credit.Four modes can be combined and selected;
◆ Loan line: offsetpledgeThe property shall be determined according to a certain proportion of the bank's recognized value, up to 70%;
◆ Limit period: the maximum cycle validity period of the limit is 20-30 years, and it will be automatically invalidated after expiration and cannot be used any more;
◆ Loan interest rate: according to the same period of the People's Bank of Chinalending rateAnd relevant interest rate floating regulations of the bank;
For short-term loans with quarterly interest settlement, the 20th day of the last month of each quarter is the interest settlement date;For monthly interest settlement, the 20th day of each month is the interest settlement date.The specific interest settlement method shall be determined by both parties through negotiation.Interest that cannot be paid on schedule during the loan period shall be charged quarterly or monthly at the loan contract interest rateCompound interest，Overdue loanLater, pressDefault interestThe interest rate is compounded.When the last loan is repaid, the interest will be paid off along with the principal.
2、Medium term loanRefers to the loan with a term of more than one year (excluding one year) and less than five years (including five years).
3. Long term loans refer to loans with a term of more than 5 years (excluding 5 years).
A way of using credit funds.On the condition of repayment, certain interest shall be paid according to the amount and time of borrowing.Loan is a kind of borrowing money from the bank with your property as collateral when there is a problem with fundsFinancing mode。
term
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The minimum term of the loan is 4 days, and the amount is more than 1 billion yuan.The bank can still handle ultra short term loans (such as those for a few days as you mentioned).However, whether the business is handled depends on whether the local bank thinks the business is profitable.In general,Personal loanIt will not do ultra short term loans. Banks are willing to do ultra short term loans only if the amount of corporate loans is relatively large.Of course, if the bank takes into account the future business relations and social relations, it may still do some other loss making ultra short-term loans.Because the approval procedure and cost of ultra short term loan banks are the same as other loans, but due to the short time and low interest charges, they are likely to lose money, so banks generally have no desire to make these loans, especially one-time customers.
advantage
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The advantage of short-term borrowing funds is that they can be arranged according to the capital needs of the enterprise, which is convenient for flexible use and easy to obtain procedures.Especially in banks, in order to prevent risksMedium and long-term loansGenerally, they are cautious and the interest rate is high. In this case, short-term borrowing has become the most important financial resource channel for many enterprises.However, the most prominent disadvantage of short-term borrowings is that they have to be repaid in the short term, so it is necessary to guarantee themobilityTo meet certain current ratio requirements.Liquidity of assets andProfitabilityIt is a pair of contradictionsasset structure The mistakes in allocation will lead to a common but very dangerous phenomenon - short loan and long investment.In this case, the enterprise must have a good cash flow mechanism for operating activitiescash flow Lack of funds will make it difficult for the enterprise to turn over funds, resulting in a decline in the liquidity ratio, a deterioration in debt paying ability, and difficulty in extricating itselfFinancial distress。
Main conditions
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If short-term application is requiredHousing mortgage loanFor guarantee, before applying, consider whether to meet the application conditions for such personal short-term loans.Because not all houses can be used as short-term housing mortgage loan guarantees, most banks have relevant regulations on mortgaged houses.First of all, the mandatory requirement of most banks is that the house age should be within 15 years, the area should be more than 60 square meters, and the loan application limit should not be less than 300000.A certain amount of loans, as well as higher short-term bank loan interest rates, can make bank loans have a certain income.The applicant should have a spare room.As well as the source of repayment and the purpose of the loan, such as personal flow, invoices, etc.Some people feel that their houses have good location and high market price, so they must be able to apply for short-term housing mortgage loan guarantee from the bank.That's wrong.When banks handle loans, the first thing to consider is risk.The new house is better than the old one.The big one is better than the small one.
If you need to apply for a personal short-term loan, it is better to choose a mortgage loan. When applying for a mortgage loan, it is easier to apply for a short-term housing mortgage loan guarantee.Therefore, before applying, choose a reasonable loan method according to the actual situation.
data statistics
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Issued by the National Bureau of Statistics on February 28, 2023《Statistical Bulletin of National Economic and Social Development of the People's Republic of China in 2022》It shows that in 2022, the balance of RMB loans of major rural financial institutions (rural credit cooperatives, rural cooperative banks, and rural commercial banks) will be 26719.5 billion yuan at the end of the year, an increase of 2470.2 billion yuan over the beginning of the year.The balance of RMB consumer loans of all financial institutions was 56036.1 billion yuan, an increase of 1152.2 billion yuan.Among them, householdsshort-termThe balance of consumer loans was 9347.3 billion yuan, down 9 billion yuan;The balance of medium and long-term consumer loans to households was 46688.8 billion yuan, an increase of 1161.3 billion yuan.[1]
In November 2023, short-term loans to households will increase by 59.4 billion yuan;Enterprise (institution)Short term loans increased by 170.5 billion yuan[2]。
The 2023 financial statistics report shows that:In the whole year, RMB loans increased by 22.75 trillion yuan, an increase of 1.31 trillion yuan over the previous year.By sector, household loans increased by 4.33 trillion yuan, of which short-term loans increased by 1.78 trillion yuan;Loans to enterprises (institutions) increased by 17.91 trillion yuan, of which short-term loans increased by 3.92 trillion yuan.[3]
On February 29, 2024, the National Bureau of Statistics issued the Statistical Bulletin of the People's Republic of China on National Economic and Social Development in 2023.In 2023, domestic short-term loans will reach 62303.7 billion yuan,Increase over the end of last yearten point two%。[4]
