1. The project company is regarded as the lender.

2. Investors who purchase trusts can be understood as savers.

3. The trust company plays the role of a financial intermediary, lending funds from investors who need investment opportunities to project companies in need of funds.

4. The trust company’s income comes from trust remuneration.

For example, real estate trusts lend to project companies at an interest rate of 14%, and then provide trust products to investors with an interest rate of 9.5%.

At this time, there is still an interest rate difference of 4.5%, but not all of it is earned by the trust company.

Since trust companies generally do not have outlets for sale, they must entrust banks or third-party financial management to help with the issuance.

Therefore, a 2% issuance fee should be paid to the institution that helps with the issuance.

Then there is about 0.5% to pay for bank account supervision fees, custody fees, lawyer fees, etc.

The remaining 2% is the trust company's income.

Extended information Basic characteristics of trust companies 1. Trust is based on trust, and the trustee should have good reputation.

2. The premise for the establishment of a trust is that the settlor must entrust his own property to the trustee.

3. Trust property is independent. After the trust is established in accordance with the law, the trust property is separated from the self-owned property of the trustor, trustee and beneficiary and becomes an independently operated property.

4. The trustee manages trust affairs in the best interests of the beneficiaries.

The scope of trust business includes commercial trusts, civil trusts, public trusts and other fields.

Financial trust and investment companies approved by the central bank can operate four major types of trust business, including capital trusts, movable property trusts, real estate trusts and other property trusts.