Dividend payment leads to the demand for corporate loans because

Engaged in financial loan consulting services for more than 7 years, it is very important to understand the purpose of customer borrowing. For the risk control of banks and capital institutions, understanding the purpose of borrowing and analyzing the demand for borrowing can make a reasonable loan decision, which is also conducive to the stable operation of the capital side and reduce the loan risk.

What is the loan demand? Borrowing demand means that individuals or companies are short of funds for various reasons, and their demand for cash exceeds their cash reserves, so they need to borrow money. So what is the specific reason why demand leads to insufficient cash reserves?

1. Demand caused by sales change:

1, seasonal sales growth, companies with seasonal sales characteristics, inventory and accounts receivable assets will show seasonal growth. In order to prepare the goods in advance, such as the Dragon Boat Festival, many dealers need a sum of money to operate after the year, and now they need another sum of money to prepare the Mid-Autumn moon cakes. This part of financing is called working capital investment. General companies will try their best to use internal funds to meet the working capital investment. If the internal financing cannot be met, the company will apply for a short-term loan from the bank. 2. Long-term sales growth, sales revenue keeps stable and rapid growth, operating cash flow is not enough to meet the growth of working capital investment and capital expenditure, and asset efficiency is relatively stable, indicating that asset growth income increases rather than efficiency decreases. It means that the cash flow required for the good operation and expansion of enterprises should also increase.

The second is the decline in demand and asset efficiency caused by asset changes.