Break-even point = total fixed cost ÷ (unit selling price-unit variable cost)

Loan risk refers to the possibility that the lender will face various losses in the process of operating the loan business.

The breakeven point is also called guaranteed sales or guaranteed sales. Simply put, there is no loss, and the total income is equal to the total cost.

The degree of loan risk refers to the scale to measure the degree of loan risk, and it is a concrete quantitative index that can be calculated. It is usually greater than zero and less than 1. The greater the loan risk, the less likely it is to recover the loan principal and interest on schedule. On the contrary, the smaller the loan risk, the greater the possibility of recovering the loan principal and interest on schedule.

Fixed assets loans are strictly prohibited for

Payment of fixed assets is strictly prohibited for illegal activities, such as drug purchase, gambling and sales activities. May not be used to invest in high-risk projects, such as securities, futures, foreign exchange, etc. ; May not be used to purchase real estate; May not be used to buy cars, home appliances, etc. ; Do not transfer money to others or remit money abroad; May not be used to buy stocks; It shall not be used to pay the daily expenses of the company.

The difference between fixed assets loan and working capital loan

I. Difference between fixed assets loans and working capital loans \ Purpose of fixed assets loans: capital construction fixed assets loans that provide credit support for infrastructure, service facilities and new or expanded productive projects; \ Technical transformation fixed assets loans that provide credit support for technical transformation projects carried out by enterprises to expand reproduction; \ Fixed assets loans for research and development that provide credit support for research and development projects of new technologies and new products; \ Basic asset purchase is a fixed asset loan that provides credit support for the purchase of buildings or facilities such as production, storage and office. The purpose of working capital loan: due to the consumption and storage of various finished products, semi-finished products and raw materials needed for production and operation, or due to seasonal reasons, it is necessary to purchase and store various seasonal materials needed for production and operation. \ 2. The difference between fixed assets loan and working capital loan term \ Fixed assets loan term: 1-5 years medium-term loan or more than 5 years long-term loan. \ Term of working capital loan: according to the term, it can be divided into short-term working capital loan within one year (including one year) and medium-term working capital loan from one year to three years. \ 3. The difference between fixed assets loans and working capital loans in the audit mode \ Fixed assets loans audit mode: apply for audit one by one. \ Review method of working capital loan: apply for review one by one or review the working capital loan amount that can be borrowed, used and repaid within the time and limit specified by the bank. \ 4. The difference between the repayment sources of fixed assets loans and working capital loans \ The repayment source of fixed assets loans: the income after the project is completed, accepted and put into production, or the enterprise's own funds. The repayment source of working capital loan: mainly the operating income of the enterprise itself. \ V. There are risk differences between fixed assets loans and working capital loans \ Risk of fixed assets loans: There are many external factors, uncertainties and instability factors, and the risk is high. \ Liquidity loan risk: mainly focused on the risks of borrowers, guarantors or collaterals. \ VI。 The difference between fixed assets loan and working capital loan \ fixed assets loan income: long-term stable income. \ Working capital loan income: short-term and medium-term income. \ VII: Summary \ The above are the main differences between fixed assets loans and working capital loans. After understanding these, enterprises that need loans can go to the bank to choose the loan type that suits them according to their own conditions and actual conditions. Speaking of banks that enterprises can lend, Ping An Bank is recommended here. Ping An Bank can handle both fixed assets loans and working capital loans. Now let's introduce the different business processes of Ping An Bank in handling two kinds of loans.

Risk Management of Fixed Assets Loan of China Bank

(a) the risk of rising financing costs caused by changes in national interest rates, exchange rate policies and bank interest rate policies,

(2) The risk of failing to repay the creditor's rights in advance or paying the liquidated damages in time.

The above contents are for your reference. Please refer to the actual business regulations.

Loan risk of breakeven point of fixed assets project

Fixed assets loans are relatively stable and fixed. Loan repayment plans and long-term loans can be included in the budget. You can help buy assets, or you can't afford them. The purchased assets will become loan collateral. The interest rate of long-term loans is higher than that of short-term loans. Loan applications are usually very detailed. The lender asked a lot of information about the purchase details and the financial situation of the enterprise. If you violate the loan contract, you may need to repay all the loans immediately. If the loan cannot be repaid, the lender may confiscate the assets and paralyze the enterprise.

Break-even point = total fixed cost ÷ (unit selling price-unit variable cost). The breakeven point is also called guaranteed sales or guaranteed sales. Simply put, there is no loss, and the total income is equal to the total cost. The following is an example: new product decision. When developing new products, it can be seen from the break-even point that the new products should reach the lowest sales volume or the lowest sales amount, so that the investment will not lose money. Expansion or contraction decision, unit selling price minus unit variable cost, also known as unit profit contribution, can decide whether to expand business or stop production or business by unit profit contribution ≥0. From the break-even point formula, it can be found that if the unit selling price subtracts the unit variable cost, that is, the unit profit contribution, it means whether there is money to be made for each unit of products sold. If the unit selling price is far greater than the unit variable cost, not only the variable cost can be recovered, but also the fixed cost can be recovered, and finally profits can be generated.

What's the difference between fixed assets loan and working capital loan?

In the process of daily production and operation, it is inevitable to encounter unexpected situations. At this time, it is necessary to apply for a loan to solve the problem of funding gap. There are two main types of corporate loans, fixed assets loans and working capital loans. Let's look at the difference between these two kinds of loans.

First, the use is different.

Fixed assets loan is a loan used to solve the capital demand of fixed assets investment activities of enterprises, such as the construction, purchase, transformation and corresponding supporting facilities construction of fixed assets projects.

Working capital loan is a loan used to meet the short-term capital demand in the process of production and operation and ensure the normal production and operation activities.

It can be seen that fixed assets loans help production and operation through the purchase of fixed assets, while working capital loans directly affect the daily production and operation of enterprises, and their uses are different.

Second, the terminology is different.

The term of fixed assets loan is relatively long, generally it is a medium-term loan of 1-5 years or a long-term loan of more than 5 years, while the working capital loan generally does not exceed 1 year, and the longest term in special circumstances does not exceed 3 years (including 3 years).

Third, the audit is different.

Fixed assets loans are reviewed one by one, working capital loans are reviewed one by one, or the amount of working capital loans that can be borrowed, used and repaid within the time and limit stipulated by the bank.

Fourth, the risks are different.

The risks of fixed assets loans mainly come from the outside, such as market risk and interest rate risk, while the risks of working capital loans mainly focus on the risks of borrowers, guarantors and collateral.