What does credit financing mean?

Credit financing is a way of indirect financing, but applying for loans from financial institutions is the main way of enterprise financing. Credit financing refers to the financing mode that enterprises sign agreements with financial institutions (mainly banks) to meet their own production and operation needs, borrow a certain amount of funds, and repay the principal and interest within the agreed period.

Classification:

1 Classification by term: short-term loans, medium-term loans and long-term loans.

Credit financing

2 Classification by collateral: credit loans and secured loans.

The conditions for credit financing are:

1. It must be approved by the State Administration for Industry and Commerce, registered and hold a business license;

Credit financing

2. Implement independent economic accounting and be responsible for its own profits and losses;

3. Have certain self-owned funds;

4. Abide by policies, decrees and bank loan settlement management system, and open basic deposit account and general deposit accounts in banks as required;

5. There is a market for products;

6. The production and operation are favorable;

7. Do not misappropriate credit funds;

8. Integrity is the foundation.