In the process of loan, some borrowers urgently need some funds to fill the vacancy in the bank, otherwise they can't apply for a loan smoothly. Because they can't provide it for the time being, the guarantee company will provide "bridge repair" business to help customers solve their current difficulties. What is the use of "bridge financing"?
For example, X applied for a mortgage loan of 5 million yuan in the bank before, and now he wants to borrow another 2 million yuan. The problem is that his previous 5 million has not been paid off. If he wants to borrow another 2 million, he must first pay off the 5 million he owed to the bank. X is short of money at this time, but he has no money himself. At this time, the "bridge fund" business provided by the guarantee company can just help him solve this problem. The guarantee company will help X pay back the 5 million he owed to the bank before, and then X will apply for a loan of 7 million from the bank. After the bank loan is approved. X returns 5 million yuan and corresponding interest to the guarantee company. This part of the money is the bridge fund, and the process of the guarantee company helping X pay back the money is called crossing the bridge.
First, the characteristics of the bridge mat endowment
In the bridge fund business, it generally has the following characteristics:
1, short term. Generally, it does not exceed one year, generally from 1 month to 12 months.
2. Quick approval. Because customers are in urgent need of funds, the guarantee company can complete the loan within 24 hours at the earliest.
3. Solve the problem in time. It can effectively solve the borrower's demand for short-term funds and support and incite the operation of funds.
Second, the classification of bridge funds
1, used to return the old and borrow the new.
Some borrowers need to renew their loans because they have no money to repay them, so the guarantee institution will help the borrowers pay off their old loans and then borrow new loans to repay the temporarily lent funds.
2. It is used for turnover within the credit limit period.
This mainly includes margin advances for enterprises to open bank acceptance bills, margin advances for trade financing credit line loans, and regular loan repayment business generated by recovering credit lines within the time limit.
3. Used for real estate bridge fund business.
(1) Pay the premium. This means that real estate enterprises pay the land price with bridge funds, then apply for bank loans with relevant land use certificates, and then repay the bridge funds with loans after the loans are approved.
(2) The demand for bridge financing derived from re-mortgage. For example, only 60% of Xiao Liu's property is mortgaged in Bank A, while Bank B is willing to lend 70% to Xiao Liu, so that Xiao Liu Can can get more funds. In this process, Xiao Liu must pay off the loan from Bank A before he can borrow from Bank B, so the demand for bridge funds generated in this way is the bridge funds derived from re-mortgage.
(3) Redemption of building funds. In the process of buying and selling second-hand houses, because most of the sellers' properties are still mortgaged, the new buyers must pay off the loans and remove the mortgage of the properties before they can proceed normally. However, due to lack of funds, the seller applied for a short-term loan from Houze Guarantee, so the demand is what we often call "foreclosure".