First of all, we must understand what a credit line is. Credit line refers to the stock management index of short-term credit business approved by commercial banks for customers, which can generally be divided into single loan credit line, borrowing enterprise line and group borrowing enterprise line. As long as the credit balance does not exceed the corresponding business variety index, regardless of the accumulated amount and the number of issuance, the business department of a commercial bank can provide short-term credit to customers quickly, that is, enterprises can easily recover the bank's short-term credit funds, thus meeting customers' requirements for fast and convenient financial services.
Secondly, we should understand the difference between credit and loan.
Credit cannot be equated with loan. Credit is a general concept of risk control, which refers to the funds directly provided by commercial banks to customers of non-financial institutions, or the guarantee provided for the compensation and payment liabilities that may arise in the related economic activities such as loans, trade financing, bill financing, financial leasing and investment. The credit line is determined by commercial banks according to the national credit policy and the basic situation of each region and customer. Loans are loans issued by banks or other credit institutions to borrowers, which must be repaid and interest paid within a certain period of time.
Third, banks have a system to prevent and control credit risks.
Generally speaking, it is not the company that applies to the bank for a credit line, and the bank will approve it. Credit methods are divided into basic credit and special credit. Basic credit refers to the credit line determined by commercial banks according to the national credit policy and the basic situation of various regions and customers. Special credit refers to the credit granted by Agricultural Development Bank to specific projects in addition to the basic credit line according to national policies, changes in market conditions and special needs of customers. For example, reserve loans, supervision loans, project loans and contract purchase loans can obtain special credit.
After accepting the application, the bank will analyze and evaluate the customer's credit status according to the risk prevention and control system, and analyze the cash flow, operating ability, solvency, future expected income, etc. And based on this, the customer's solvency is comprehensively evaluated and a quota is calculated. If there is no good project, even if the bank passes the credit application, the amount will not be too large.
Generally speaking, listed companies apply for credit lines from banks instead of loans, and most of them have new projects, which will not have a negative impact on the stock market.