Home Technique Short-term financing

Short-term financing



definition

Short-term financing mode mainly has bank short-term credit, business credit.

Short-term financing coupons

In the country of the People's Republic of China, short-term financing coupons refer to non-financial enterprises with legal qualifications, in accordance with the conditions and procedures stipulated in the Administrative Measures for Short Term Financing. The interbank bond market is issued and settled in a certain period of time payment.

Characteristics

The healthy development of short-term financing coupons is conducive to changing the status of direct financing and indirect financing proportion, which is conducive to improving monetary policy transmission mechanisms, which is conducive to maintaining overall financial overall, It is conducive to the promotion of financial markets to coordinate sustainable development.

Issue

Financing coupons are not issued to the public, only to the agency investor in the bank bond market, transaction in the inter-bank bond market.

Distribution method

Financing coupons issued by qualified financial institutions, enterprises to choose lead underwriters, corporate change lead underwriters must report to the People's Bank of China to record; Based by the primary underwriter organized the contractor. Enterprises must not sell financing coupons themselves. The underwriting method and related fees are determined by the enterprise and underwriting agencies.

Distribution price

Financing coupon issuance interest rate or issue price is determined by the company and the underwriting agency.

Declaration period

Financing coupons for longer less than 365 days, companies issued financing coupons can determine the deadline of each financing coupon within the longest period.

Issue

The financing voucher issued by the company will implement balance management, that is, the balance of the financing coupon does not exceed 40% of the net assets of the company.

Investment Risk

The investment risk of financing coupons is borne by the investor.

method method

Short-term financing is mainly five types, namely commercial credit, bank borrowing, commercial bill, short-term financing coupons and pawn mortgage

one Business credit:

Commercial credit is manifested in the balance sheet as payable, and in Western countries are the biggest categories in short-term credit, and they are particularly important for smaller companies. Commercial credit is a spontaneous source of financing. It comes from the daily commercial credit sales activities of the enterprise, with the increase in sales, the financing supply from payable will be increased.

Commercial credit is used as a source of financing, and it is characterized by convenience but informal. Enterprises that have not qualified to obtain credit from financial institutions may have commercial credit. The salesman can provide financing to its customers (buyers), mainly due to their experience, understanding the customer's reputation, knowing the industry's marketing practice. They are usually in a favorable location and can judge customer repayment capabilities and sales risk. The commercial credit supply that the vendor can provide is affected by its own credit size. With the number of buyers, the buyer who accepts financing should be careful when using this commercial credit, because credit expansion involves sales enterprises. Cost, vendors may reveal the cost of unconditional credit by improving product sales prices. In the case of a distributor, the buyer should carefully study the cost of use of this financing.

Short-term financing

Second, short-term borrowing

Short-term borrowing refers to borrowing within a year, a borrowing of the company to the bank or non-financial institution. Short-term borrowings can be divided into production cycling loans, temporary loans and settlement loans in accordance with the purpose and use;, it can be divided into one repayment loan and installment borrowing; if there is no guarantee, it can be divided into mortgage and credit loans.

In order to reduce the risk of loan, it is necessary for the company to provide guarantees when issuing short-term loans. Enterprises can only provide loans only if they provide the necessary guarantees. Since the short-term borrowing is short, it is generally a liquidity asset, such as receivable, inventory, payment, etc.

Account payment guarantee borrowings, that is, the loan obtained by borrowing enterprises with its accounts receivable as a guarantee product. The bills should be discounted to the bank credit to the bank in the bank's bill.

inventory guarantee loans, ie, enterprises in stock as a borrowing of the guarantee. The cost of short-term borrowing is mainly reflected in the high and low of borrowing interest rates, especially the actual interest rate cistened under different repayment methods. Enterprises should determine the cost of short-term borrowings in accordance with different situations in order to make reasonable choices.

Short-term borrowing is compared with the commercial credit, the fundraising efficiency is high, and the fundraising is elastic. The disadvantage of short-term borrowings is that the raised risk is high, and the actual interest rate is high, especially in the case of compensatory balances and additional interest rates.

Enterprises can choose short-term borrowings, or they can choose from banks that provide loans. With the development of the financial credit industry, the banks and non-financial institutions that can provide loans to the enterprise are increasing, and the enterprises should make choices between various loan institutions under the premise of their own, this is an important task for funding financial management. . When the company chooses the bank, in addition to reasonable choice of borrowing types, borrowing interest rates, and borrowing conditions, it is necessary to consider the following related factors:

1. Bank's basic policies for risk; 2. Support for borrowers 3. Bank deposit stability structure; 4, banks in loans; 5, the size of the bank; 6, the ability to consult services.

three, commercial ticket

The advantages of this financing method of commercial notan is that the cost of financing is low and the procedures are simple, and there are many troubles from the signing agreement with financial institutions, but due to it The financing is limited by the funding of funds funds, and is also subject to the well-known information on the market market, so it is especially suitable for short-term financing of large enterprises.

four, short-term financing coupons

Short-term financing coupons are unconscious short-term votes issued by the company. In my country, short-term financing vouchers refer to enterprises in accordance with the conditions and procedures for the Administration of Short-Term Financing Vouchers in the Inter-Bank Bond Market and agree to pay for securities in the payment within a certain period of time. Direct financing methods of funds within the year.

The short-term financing voucher is low, the amount of fundraising is relatively large, and the credibility of the company can also improve the credibility of the company, but the risk of short-term financing coupons is relatively large, the elasticity is relatively small, and the issuance is strict.

five, pawn mortgage finance

pawns mortgage financing, abbreviated as a pawn. It is mainly to refer to the user's ability to make the property, property rights as a material, or pay a certain proportion of cost, and pay a certain amount of money, and pay the as a gold interest within the agreed period, repay the gold, The behavior of redeeming the goods.

This type of financing is: First, the turnover speed is fast, such as: Huaxia Die's housing code is a business day to reach a working day. Second, the mortgage is wide, real estate, automobiles, stocks, gold, materials, etc. can be collateral. Third, there is no funding limit, such as: After getting funds, the pavilion does not ask for fund use, this and bank restriction loan use is different. Fourth, borrowing is flexible, such as: You can choose a five-day interest, you can choose the highest limit loan. Fifth, its interest is higher than bank loans.

In addition to the above five main short-term financing methods, there are short-term financing methods such as imports of import and export services, export packages, export deposits, bank acceptance bill discounts. Enterprises can choose the right financing method

compare advantage

Financing voucher

Financing coupon (hereinafter referred to as central settlement company) Register, the central settlement company is responsible for providing services. The People's Bank of China supervise and manage the distribution, transaction, registration, hosting, settlement and redemption of financing coupons according to law.

Compared to other financing methods, short-term financing coupons have three advantages.

One is cost advantage. has a cost advantage of about 2 percentage points compared to short-term loan interest rates based on the current bond yield structure.

The second is a short-term financing coupon spirit. For example, the issuance procedure is taken relatively simple, and the issuer is significantly shortened; the balance management system can make the issuer to the market interest rate, supply and demand and its own financing needs, cash flow characteristics, flexibility to determine the product release timing and Product period structure; Bank Market gathers the most important institutional investors in the market, including commercial banks, insurance companies, funds, etc., their funds are large, which is conducive to the completion of financing in the short term.

three is conducive to the establishment of a market reputation. By issuing short-term financing coupons, regularly discloses financial information, companies can establish a good credit image in the capital market, and launch credit foundations for sustained financing and long-term bond finance and equity finance.

Related Knowledge

What is the policy background introduced short-term financing coupons in the interbank bond market?

is currently an important opportunity for the development of China's financial market, and is also an important opportunity for the development of China's monetary market. The development of the monetary market is to change the disorders of direct financing and indirect financing, and the minor monetary policy transfer mechanism will prevent the general money supply from overgrown, and the overall stability of financial overalls has important strategic significance. How to seize important opportunities, promote the continued rapid development of the money market is a major problem with the overall reform and development of the finance.

The main challenge for China's currency market is to develop uneven challenges. This includes the imbalance between two aspects: First, the market development of the monetary market is uneven. The large-scale demolition and bond repurchase market is relatively large, short-term government bonds and short-term policy financial bonds are relatively small, and the financing commercial books and large amounts of transfers have not yet existed. The second is the imbalance in the development of monetary market products, participants, intermediaries and market rules. Most of the problems encountered in the development of the monetary market in the development of the problem of the development of the monetary market. If only these issues take local reform measures, it will be difficult to fundamentally solve the above problems, sometimes even Bring new problems.

Money market participants, monetary market products and monetary market operation rules, these three contradictions between the elements of each other, and mutual restrictions are the motivation for the development of the monetary market. The comprehensive balanced development of the monetary market is: the extent of participants has improved, and financial products are increasing, and the rules are constantly improved.

Comparison

Short-term financing is mainly used to solve the short-term capital use and turnover of fundraisers, and investors mainly use it to meet the needs of asset liquidity management.

Long-term financing is mainly used to solve the extension of capital needs. Investors mainly use it to meet the needs of business management.

Take the term of the financial instrument as classification standards, the term of financial instruments on the monetary market is less than one year or less, and the financial instruments of the capital market are more than one year.

Short-term financing is mainly from the monetary market. The currency market is completely creditorial transactions.

Long-term financing is mainly from the capital market. The capital market has both credit transactions and property transactions.

Due to the difference in the period of financial instruments, the role and benefits are different, and the fundraisers pursue low-cost, low-risk, and maximize the utility of cost and risk of different financing methods, fundraising.

There is also a difference between short-term financing and long-term financing. The effects via the financial instrument makes their utility to change, change.

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