What are the financing methods for small and micro enterprises?

Common financing methods for small and micro enterprises are:

(A) intangible assets secured loans

According to relevant laws and regulations, intangible assets such as trademark exclusive right, patent right and property right in copyright can be used as loan collateral.

(2) natural person guarantee

Natural person guarantee can take three ways: mortgage, pledge of entitled interests and mortgage plus guarantee. Property that can be mortgaged includes all personal property, land use rights and means of transportation. But if the borrower fails to repay the loan within the time limit, the bank will investigate the guarantor's guarantee obligation!

(3) Pawn financing

Pawn is a kind of financing method that takes physical objects as collateral and obtains temporary loans in the form of physical object ownership transfer.

(4) Comprehensive credit granting

Banks grant credit lines to some enterprises with good operating conditions and reliable credit, and enterprises can recycle them within the validity period and credit line.

(5) Credit guarantee loan

At present, more than 100 cities in China have established credit guarantee institutions for SMEs. Most of these institutions implement the form of membership management, which belongs to public service, industry self-discipline and self-non-profit organizations.

(vi) Housing loans

If an enterprise has a reliable market for its products, but its own capital is insufficient and its financial management foundation is poor, and it is difficult to provide collateral or seek third-party guarantee, the bank can provide loan support to the buyers of its products according to the sales contract.

Of course, there are many ways for small and micro enterprises to borrow money. Different lending institutions will have corresponding loan products for corporate loans. Therefore, business owners must know more before applying for loans and choose the most suitable loan method through comparison.