There are 12 main financing methods for small and medium-sized enterprises: 1. Comprehensive credit, that is, the bank grants a certain amount of credit line for a certain period of time to some enterprises with good operating conditions and reliable credit, which can be recycled by the enterprise within the validity period and quota range.
For a comprehensive credit limit, the enterprise shall apply for relevant materials at one time and the bank shall approve it at one time.
Enterprises can use the funds in installments according to their own operating conditions and borrow and repay them at any time. It is very convenient for enterprises to borrow money and it also saves financing costs.
Banks provide loans in this way, generally to enterprises that have industrial and commercial registration, passed the annual inspection, have good management, have reliable reputation, and have a long-term cooperative relationship with the bank.
2. Credit Guarantee Loans Among the 31 provinces and cities across the country, more than 100 cities have established credit guarantee institutions for small and medium-sized enterprises.
Most of these institutions implement membership management and are public service, industry self-disciplined, and non-profit organizations.
The source of the guarantee fund is generally composed of local government financial allocations, member funds voluntarily paid by members, funds raised from the community, and funds from commercial banks.
When enterprises cannot provide guarantee measures acceptable to banks, such as mortgages, pledges or third-party credit guarantors, guarantee companies can solve these problems.
3. Buyer's Loans If an enterprise's products have reliable sales, but its own capital is insufficient, its financial management foundation is poor, and it is difficult to provide collateral or seek third-party guarantees, the bank can provide it with a loan based on the sales contract.
The purchaser of the product provides loan support.
The seller can charge a certain percentage of advance payment from the buyer to solve financial difficulties during the production process.
Or the buyer issues a bank acceptance draft, and the seller takes the draft to the bank for discounting.
4. Long-distance joint collaboration loans Some small and medium-sized enterprises have a wide range of products, or they provide supporting parts for some large enterprises, or they are loose subsidiaries of enterprise groups.
In the process of producing collaborative products, if you need to supplement production funds, you can seek a sponsoring bank to take the lead and provide unified loans to the group company. The group company will then provide the necessary funds to the collaborative enterprise, and the local bank will cooperate with the contract supervision.
The lead bank can also cooperate with the bank where the cooperative enterprise has its account in a different place to provide loans separately.
5. Project Development Loan If some high-tech small and medium-sized enterprises have a scientific and technological achievement transformation project of great value and the initial investment amount is relatively large and the enterprise's own capital cannot bear it, they can apply for a project development loan from the bank.
Commercial banks will provide active credit support to small and medium-sized enterprises that have high-tech products or patented projects with mature technologies and good market prospects, as well as small and medium-sized enterprises that use high-tech achievements to carry out technological transformation, so as to promote enterprises to accelerate the transformation of scientific and technological achievements.
6. Export-earning loans For enterprises that produce export products, banks can provide packaged loans based on the export contract or the credit visa provided by the importer.
For enterprises with current exchange accounts, foreign exchange mortgage loans can be provided.
For enterprises with foreign exchange income sources, they can obtain RMB loans with exchange settlement certificates.
Enterprises with promising export prospects can also borrow a certain amount of technological transformation loans.
7. Natural Person Guaranteed Loans In August 2002, the Industrial and Commercial Bank of China took the lead in launching the natural person guaranteed loan business. From now on, when ICBC’s domestic institutions handle credit business for small and medium-sized enterprises with a term of less than 3 years, natural persons can provide property guarantees and assume agency responsibility.
liability.
Natural person guarantees can take the form of mortgage, rights pledge, or mortgage plus guarantee.
Mortgage plus guarantee means that on the basis of property mortgage, the mortgagor's joint liability guarantee is added.
If the borrower fails to repay the entire loan principal and interest on time or other defaults occur, the bank will require the guarantor to perform its guarantee obligations.
8. Personal entrusted loans China Construction Bank, Minsheng Bank, CITIC Industrial Bank and other commercial banks have successively launched a new type of financing business - personal entrusted loans.
That is, a loan is entrusted by an individual to provide funds, and a commercial bank issues, supervises, uses and assists in the recovery of the loan based on the loan object, purpose, amount, term, interest rate, etc. determined by the client.
9. Loans secured by intangible assets According to the relevant provisions of the "Guarantee Law of the People's Republic of China", intangible assets such as trademark exclusive rights, patent rights, property rights in copyrights that can be transferred according to law can be used as loan pledges.
10. Bill discount financing Bill discount financing means that the bill holder transfers the commercial bill to the bank and obtains funds after deducting the discount interest.
In China, commercial bills mainly refer to bank acceptance bills and commercial acceptance bills.
One of the benefits of this financing method is that banks do not lend based on the asset size of the company, but based on market conditions (sales contracts).
11. Financial leasing Financial leasing has become the second largest financing method in equipment investment after bank credit in economically developed countries.
Financial leasing is a new financing method that integrates credit, trade, and leasing and is characterized by the separation of ownership and use rights of leased objects.