1. If the enterprise uses working capital loans, it can effectively reduce the financial cost of the enterprise, because the interest of enterprise loans can be deducted before tax, thus reducing the tax base.
2. When applying for a working capital loan, this amount will not become the personal debt of the business owner, and you can apply for a mortgage smoothly.
3. After applying for a working capital loan, business owners can borrow and repay within the time and amount stipulated by the bank, which greatly increases the flexibility in the use of funds.
Working capital loans shall not be used for fixed assets, equity and other investments. , shall not be used in areas and uses prohibited by the state.
The working capital loan shall not be misappropriated, and the lender shall inspect and supervise the use of the working capital loan as stipulated in the contract.
In-depth interpretation of the provisions on the use of working capital loans
First, the lender is also a commercial bank and other financial institutions, and the borrower is the legal representative of the enterprise or the person in charge of other organizations. When a borrower applies for a working capital loan from a bank, it is necessary for the bank to reach an agreement with him on the use of the bank loan.
Second, generally speaking, the purpose of working capital loans is to be used for the daily production and operation of borrowers. Can not be used for fixed assets, equity and other investments. , and can not be used in the production and operation fields and uses prohibited by the state. If it is not used according to the agreed purpose, it will be liable for breach of contract, and serious banks will recover the loan.
Third, the borrower cannot misappropriate the working capital loan at will, and the bank has the responsibility to supervise the borrower to use the loan funds according to the agreed purpose. If the bank fails to fulfill its responsibilities, the China Banking Regulatory Commission, namely the China Banking Regulatory Commission, will punish the bank according to the Banking Supervision Law of the People's Republic of China.
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Advantages of enterprise working capital loan:
First of all, working capital loans can reduce the financial costs of small companies.
The advantage of working capital loan for small companies is that if working capital loan for small companies is adopted, the financial cost of the company can be reduced accordingly, because the interest on corporate loans can be deducted from the entry cost before tax, thus reducing the tax base.
Moreover, the working life of working capital loan has a wide choice range, which can be 1 year or 5 years. In addition, the repayment method is also more flexible. If it is 1 year, you can also choose to repay the principal and interest in one lump sum at maturity to facilitate capital turnover.
Second, the enterprise working capital loan does not affect the boss's personal purchase.
As a convenient loan, the working capital loan of a small company, although the mortgagor is the owner of the company, there is no loan relationship between the mortgagor and the bank, and the loan does not belong to the mortgagor's personal liabilities. If the company boss wants to buy a house again and apply for a mortgage loan, the above loan will not have any impact.
Three, flexible use of corporate liquidity loans
The working capital loan method has many advantages over applying for a business start-up loan in the boss's personal name: if the business owner applies for a business start-up loan from the bank with his own property as collateral, his monthly repayment amount is relatively high.
Banks will also be more strict in reviewing the boss's personal income. They cannot repay the principal and interest in one lump sum, but must repay the money on a monthly basis. For the purpose of using loans for working capital, the financial pressure is relatively high.
Corporate working capital loans are different. The continuous use of working capital during the loan period maintained the continuity of working capital. Simplifying financial management and financing management is helpful for enterprises to master the working capital turnover efficiency and indirectly promote the increase of benefits.
Moreover, the maximum loan amount for small companies with real estate as collateral is 65% of the assessed price, which is not limited by the purchase price at that time.
Baidu encyclopedia-working capital loan