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How can you achieve the lowest interest rate for borrowing?

Speaking of interest rates in the corporate loan market or interest rates on corporate loans how can you achieve the lowest interest rates on borrowing

Usually in this case, the interest rate on a loan for a business, may be determined by these important factors. They are the economic policy orientation of a country, the qualifications of the borrower, the industry of the borrower, the credit risk of the borrower, the term of the loan, the type of loan, the way the loan is secured, the development of the loan servicer, etc.

National policy orientation: i.e. what is the country developing vigorously now? Encourage what industry, think this industry whether the loan amount or loan conditions, loan interest rates, etc. have policy support.

Borrower qualification: means that the borrower is a state-owned enterprise or a general enterprise,物業貸款 or an industry advantageous enterprise or a backward enterprise. For example, tobacco and power supply enterprises are basically highly qualified. If these enterprises want to borrow money, there will certainly be many institutions competing to borrow money because if they have good qualifications, repayment will be safer and many of them will mean a stronger ability to negotiate loan interest rates. The interest rates will naturally be lower and the loan rates will be lower.

Borrowers belong to the corporate sector: This is actually somewhat similar to national economic policy, now let's talk about chips, smart technology devices, artificial intelligence systems, etc. This process will involve a lot and is difficult to research here. The main content can be found in this data file "The State Council on Further Accelerating the Cultivation and Development of Strategic Emerging Cultural Industries" has an attachment that writes some relevant industrial structure classifications. I won't post it here, but I can share it if you need to leave a comment.

How to get a low interest rate loan

Borrower credit information:It refers to the daily fulfillment of contracts, early repayment of loans, payment of social security, payment of electricity bills, whether administrative penalties have been imposed, whether litigation is involved, etc. There is also the environmental status, which is a very important aspect in recent years. Basically, you can say that it is a veto.

Loan term: this should be easy to understand, even if it is the length of the loan term. Long-term rates are usually higher than short-term rates.

Type of loan: This is usually related to the maturity date. Short-term business types include discounting, short-term liquidity loans, and order financing. All are temporary working capital loans. It also relates to the source of funding for the loan, whether domestic or foreign funding. Some foreign loan businesses have chronically low interest rates, but those who want to do this type of business will have certain requirements. This includes requirements for businesses and enterprises. Some free trade zones have been launched. Currently, many countries have zero or even negative interest rates on deposits, so lending rates are relatively low.

How to get lower interest rates

Loan guarantees are managed by:either providing collateral or security, or pure credit (i.e. no collateral or security), or full margin. Usually the pure credit appraisal method will be higher if needed, it will be a mortgage, and then we will be the full deposit method. The credit development model can also be done with relatively low interest rate risk, but only if you are preferably a premium service customer of this company's bank. For example, you have been doing related business with this bank for more than 10 years, and you have used many of this bank's technical product designs, etc. The bank has made a relatively high contribution to this bank.

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