12 types of financing methods for small and medium-sized enterprises
1. Comprehensive credit
That is, banks grant a certain amount of credit within a certain period to some enterprises with good operating conditions and reliable credit The credit line can be recycled by the enterprise within the validity period and the credit limit. For a comprehensive credit limit, the enterprise shall declare relevant materials in one go and the bank shall approve it in one go. 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
Currently, more than 100 cities in 31 provinces and cities across the country 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 member companies borrow money from banks, they can be guaranteed by small and medium-sized enterprise guarantee institutions. In addition, small and medium-sized enterprises can also seek guarantee services from guarantee companies that specialize in intermediary services. When an enterprise cannot provide guarantees acceptable to banks, such as mortgages, pledges or third-party credit guarantors, guarantee companies can solve these problems. Because guarantee companies have more flexible collateral requirements than banks. Of course, in order to protect their own interests, guarantee companies often require enterprises to provide counter-guarantee measures. Sometimes guarantee companies will send personnel to enterprises to monitor the flow of funds.
3. Buyer's loan
If the company's products have reliable sales, but its own capital is insufficient and its financial management foundation is poor, it cannot provide collateral or seek third-party guarantees. In more difficult cases, banks can provide loan support to buyers of their products in accordance with the sales contract. 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 widely sold 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 remote location to provide loans separately.
5. Project development loans
If some high-tech small and medium-sized enterprises have scientific and technological achievement transformation projects of great value and the initial investment amount is relatively large and the company's own capital cannot bear it, they can apply to Bank application for project development loan. 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. For high-tech small and medium-sized enterprises that have established stable project development relationships with universities and scientific research institutions or have their own research departments, banks can also provide project development loans in addition to working capital loans.
6. Export-earning foreign exchange loans
For companies that produce export products, banks can provide package 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, the domestic institutions of ICBC will handle small and medium-sized enterprises within 3 years. When conducting credit business within the scope of the above, a natural person may provide property guarantee and bear reimbursement liability. Natural person guarantees can take the form of mortgage, rights pledge, or mortgage plus guarantee. Properties that can be used as mortgage include personal properties, land use rights, transportation vehicles, etc.
Personal property that can be pledged includes savings certificates, certificated treasury bonds and registered financial bonds. 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
Commercial banks such as China Construction Bank, Minsheng Bank, and CITIC Industrial Bank 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. The basic procedures for handling personal entrusted loans are: 1. The client submits a loan application to the bank. 2. The bank selects and matches according to the conditions and requirements of both parties, and recommends them to the entrusting party and the borrower respectively. 3． The client and the borrower meet directly to negotiate and make decisions on specific matters and details such as loan amount, interest rate, loan term, repayment method, etc. 4. After the borrower and the lender have negotiated the required conditions, they go to the bank together and sign an entrustment agreement with the bank respectively. 5. The bank investigates the borrower's credit status and repayment ability and issues an investigation report. Then the borrower and the borrower sign a loan contract and issue the loan after approval by the bank.
9. Loans secured by intangible assets
According to the relevant provisions of the "Guarantee Law of the People's Republic of China", among the exclusive rights to trademarks, patents and copyrights that can be transferred according to law, Intangible assets such as property rights can be used as collateral for loans.
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 our country, 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). From the time an enterprise receives a bill to the date when the bill is due to be cashed, it often takes anywhere from a few dozen days to as many as 300 days. During this period, the funds are idle. If an enterprise can make full use of bill discount financing, the procedure is far simpler than applying for a loan, and the financing cost is very low. For bill discounting, you only need to bring the corresponding bills to the bank to go through the relevant procedures. It can usually be completed within 3 business days. For enterprises, this is "use tomorrow's money to make money the day after tomorrow." This financing method It is worthy of extensive and active use by small and medium-sized enterprises.
11. Financial leasing
Financial leasing has become the second largest financing method in equipment investment in economically developed countries, after bank credit. 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. After the equipment manufacturer takes a fancy to a certain piece of equipment, it can entrust a financial leasing company to purchase it, and then deliver the equipment to the enterprise on a lease basis. When the company pays off the rent during the contract period, it will eventually own the equipment. Through financial leasing, enterprises can use a small amount of funds to obtain the advanced technical equipment they need, and can produce and pay rent at the same time. For enterprises lacking funds, financial leasing is a good way to accelerate investment and expand production; for certain products, the backlog of For enterprises, financial leasing is a good means to promote sales and expand the market.
12. Pawn financing
Pawn is a financing method that uses physical objects as collateral and obtains temporary loans in the form of transfer of physical property ownership. Compared with bank loans, pawn loans have high costs and small loan sizes, but pawns also have advantages that bank loans cannot compare with. First of all, compared with banks’ almost demanding credit requirements for borrowers, pawn shops have almost zero credit requirements for customers. Pawn shops only focus on whether the pawned items are genuine. Moreover, generally commercial banks only mortgage real estate, while pawn shops can pledge both movable and real estate. Secondly, the starting point for pawning items at a pawn shop is low, and items worth a thousand yuan or a hundred yuan can be pawned. Contrary to banks, pawn shops focus more on serving individual customers and small and medium-sized enterprises. Third, compared with bank loans, which have complicated procedures and long approval cycles, pawn loan procedures are very simple and can be obtained immediately. Even real estate mortgages are much more convenient than banks. Fourth, when a customer borrows money from a bank, the purpose of the loan cannot exceed the scope specified by the bank. Pawn shops, on the other hand, do not ask about the purpose of the loan, and the money can be used very freely. Repeatedly, the capital utilization rate has been greatly improved.