How long does a short-term loan have to be "short" to be considered short?

We all know that deposits are divided into short-term deposits and long-term deposits, so the corresponding loans also have short-term and long-term divided. As the name suggests, the criterion for defining long and short term is time. So how long is a short-term loan? What types of short-term borrowings are there? Let’s introduce it in detail below.

Short-term loans are issued by Chinese banks or other financial institutions to enterprises and have agreed terms. So what are the types of short-term loans? Generally speaking, there are the following types:

1. Temporary borrowing

Due to objective reasons such as seasonality and temporary nature, the normal turnover of funds of the enterprise cannot meet the daily needs of the enterprise, then the amount exceeding The amount of production turnover or commodity turnover is included in the scope of temporary borrowing. The loan period is generally 3 to 6 months.

2. Settlement borrowing

When an enterprise handles the settlement of sales payment, it adopts the collection and commitment settlement method to make up for the funds in transit required after the goods are shipped and before the collection payment is received. Borrowed money.

3. Seller's Credit

The product quality of enterprises applying for seller's credit must be in a leading position in the country and included in the national plan. At this time, due to installment collection sales, production and operation bonuses are insufficient. , the enterprise can apply to the bank for a seller's credit loan.

4. Bill discount borrowing

Enterprises hold bank acceptance bills or commercial acceptance bills and apply for discounted loans when capital operations have difficulty in operating cash flow. The term is generally not more than 3 months.

5. Special reserve borrowing

Money borrowed from banks by enterprises to wholesale commodities approved for reserve by the state. The term of such borrowing is determined based on the reserve period of the approved commodities, and must be earmarked for specific purposes.

After reading the above introduction, everyone should understand how long a short-term loan is and what types of short-term loans there are.

What is the term of short-term borrowing?

Short-term borrowing time is generally within 3 months. 1. At present, the shortest loan period is four days, and the maximum amount is more than 10. Generally, small-amount loans do not have a short period. Banks can still handle the shortest-term loans. 2. General short-term loans are chosen for temporary use of money, and the general term is within three months. There is also a type of current loan that generally has a loan term of three to nine months. There is a type of loan called a revolving loan, and the term of this type of loan is generally more than nine months.

What is the longest term of a short-term loan? You need to know these relevant knowledge

If you are in urgent need of money in the short term and are embarrassed to ask your relatives and friends, short-term loans are your best option. choice, then the question is, what is the longest term of a short-term loan? Next, I will talk to you in detail about short-term loans.

Types of short-term loans

my country's short-term loans are divided into working capital loans, temporary loans, settlement loans, etc. according to their purpose and use;

According to the borrowing method Different from each other, it can also be divided into guaranteed loans, mortgage loans, pledge loans and credit loans.

Short-term loan loan period

What is the longest short-term loan period? The term of a short-term loan is generally about six months, and the longest cannot exceed one year. A short-term loan can only be extended once, and the extension cannot exceed the original term.

Short-term loan interest rates

Short-term loan interest rates are based on the interest rate policies and loan interest rate fluctuation ranges formulated by the People's Bank of China, based on the nature, currency, purpose, method, term, and risk of the loan. The foreign exchange loan interest rates are divided into floating interest rates and fixed interest rates. The loan interest rate is stated in the loan contract, and customers can check it when applying for a loan. Overdue loans will be charged penalty interest as required.

Advantages and disadvantages of short-term loans

The advantages of short-term loans are relatively low interest rates and relatively stable fund supply and repayment;

How to determine the term of short-term loans

Bank loans are divided into short-term loans, medium-term loans and long-term loans by term. Those within three months are called temporary loans, those between three and nine months are called current loans, and those over nine months are called revolving loans. Nowadays, loans with a term of less than one year are generally referred to as short-term commercial loans.

Short-term loans refer to loans with a loan term of less than 1 year (inclusive).

The term of a short-term working capital loan is generally about six months, and the longest is no more than one year;

Short-term loans can only be extended once, and the extension cannot exceed the original term.

What is the term of short-term borrowing?

Short-term borrowing refers to various borrowings borrowed by enterprises from banks or other financial institutions with a repayment period within one year according to the needs of production and operation, including Production turnover loans, temporary loans, etc.

It can be seen from the definition of short-term borrowing that the term of short-term borrowing is within one year.

How long is a short-term loan?

Question 1: What is the time limit between long-term borrowing and short-term borrowing? Short-term loan: A form of loan issued by Chinese banks or other financial institutions to enterprises, with a term of Less than 1 year (including 1 year).

Long-term borrowing: the term is more than 1 year.

If a long-term loan borrowed a few years ago is about to mature within 1 year, it should be regarded as a non-current liability due within 1 year.

Question 2: What does short-term borrowing equal? Short-term borrowing (ShortTermLoan or ShortTermLoans) is a type of borrowing, as opposed to long-term borrowing. In terms of accounting practice in China, short-term borrowing refers to the funds borrowed by an enterprise from external entities such as banks or other financial institutions to maintain normal production and operations or to pay off a certain debt, with a repayment period of less than one year ( various loans including one year). Short-term borrowings mainly include operating turnover borrowings, temporary borrowings, settlement borrowings, bill discount borrowings, seller's credit, pre-purchase deposit borrowings and special reserve borrowings, etc.

Question 3: How long does a short-term loan generally refer to? A loan within one year is called a short-term loan.

Question 4: What are the durations of short-term loans, medium-term loans and long-term loans? Those within 1 year (including 1 year) are short-term loans

1-3 are medium-term loans

Long-term loans of more than 3 years

Question 5: How long does a bank’s short-term loan refer to? Bank loans are divided into short-term loans, medium-term loans and long-term loans according to their terms. Short-term loans generally refer to loans within one year. Among them, those with a term of less than three months are called temporary loans, those with a term of three to nine months are current loans, and those with a term of more than nine months are called revolving loans. Nowadays, loans with a term of less than one year are generally referred to as short-term commercial loans.

Question 6: How long is a short-term loan generally? Loans that do not exceed 1 year are short-term loans.

Question 7: What type of loan is a one-year loan, long-term or short-term? A one-year loan is a short-term loan, and the term of a short-term loan is one year (including one year).

Question 8: What does short-term borrowing mean? Hello classmate, I am happy to answer your questions!

Short-term borrowing (ShortTermLoan or ShortTermLoans) is a type of borrowing, as opposed to long-term borrowing. In terms of accounting practice in China, short-term borrowing refers to the funds borrowed by an enterprise from external entities such as banks or other financial institutions to maintain normal production and operations or to pay off a certain debt, with a repayment period of less than one year ( Various borrowings including one year). Short-term borrowings mainly include operating turnover borrowings, temporary borrowings, settlement borrowings, bill discount borrowings, seller's credit, pre-purchase deposit borrowings and special reserve borrowings, etc.

Fully understanding the meaning of each USCP noun can enhance your understanding of it and make it easier for you to pass the exam.

I hope Gaodun Online School’s answers can help you solve your problem. You are welcome to submit more financial and accounting questions to Gaodun Enterprise.

Gordon wishes you a happy life!

Question 9: What is the term of a short-term loan? Bank loans are divided into short-term loans, medium-term loans and long-term loans by term. Those within three months are called temporary loans, those between three and nine months are called current loans, and those over nine months are called revolving loans. Nowadays, loans with a term of less than one year are generally referred to as short-term commercial loans.

Short-term loans refer to loans with a loan period of less than 1 year (inclusive).

The term of a short-term working capital loan is generally about six months, and the longest term is no more than one year;

A short-term loan can only be extended once, and the extension cannot exceed the original term.

For short-term loans in Chengdu, find a financial management company.