Date: December 21, 2012 Source: China Business Times
Recently, Boss Wang, an individual business owner dealing in water-heating equipments, didn't worry about working capital any more, feeling very glad.
The story goes as follows. As a supplier of a leading chained building material supermarket, Boss Wang made settlement with the supermarket every three months. Working capital should be prepared separately for making routine purchase and paying salaries. With honest operation and steady development, he could get loans from banks smoothly for years, but he failed to find a satisfactory solution in terms of repayment method. Neither equal repayment on a monthly basis nor principal repayment in a lump sum upon maturity could match his capital recovery period. When settlement of the supermarket was not due and his reserved funds were just used for stocking, Boss Wang would face the shortage of working capital. He often needed to borrow “bridge loan” from fellow townsmen for repayment. Although the borrowing period was not long, a considerable amount of interest should be paid. Boss Wang felt very bad about such expense that should not be spent.
In this May, in the “Business Circle Tour” launched by Industrial Bank (IB) targeting at the building material supermarket, Boss Wang learnt that the “Business Express” integrated financial service solution that the bank provided to small- and mini-sized enterprises had innovation in the method for repaying personal business loans, launching the repayment method of “principal repayment in installments”. The so-called “principal repayment in installments” means that the loan and interests can be repaid simultaneously or in a staggered manner within the loan term, namely the loan principal can be repaid on a month, quarter, half-year or year basis while the interests may be repaid monthly; or only interests are repaid in the first stage, and both principal and interests are repaid in line with the agreed method in the second stage. Such flexible repayment method can significantly alleviate the repayment pressure of merchants like Boss Wang whose sales income is recovered periodically or who have obvious high and low sales seasons.
Considering the actual situation of Boss Wang, IB designed a repayment method of “paying interests monthly and principal quarterly”. As the interval of principal repayment is consistent to the period for settling the sales income with the supermarket, Boss Wang does not have to bother with borrowing money for temporary use any more.
In fact, flexible repayment method is only one of the aspects in which the “Business Express” integrated financial service solution is superior to similar products. As learnt by the reporter, IB's “Business Express” boasts a complete product family, covering the five highly related characteristic services of “loan financing, payment and settlement, family wealth management, VIP service and exclusive card”. For instance, customers with good settlement situation may enjoy interest concessions at a lowered rate. Customers with integrated financial assets reaching certain criteria can also become the VIP customers of “Business Express”, enjoying value-added services such as health care, airport VIP service, and free book.
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Features of “Business Express” Personal Business Loan
Circulating line saving interests
The credit term may reach 10 years at most, and loans can be borrowed and repaid at any time. No interest will be calculated for the part of credit line not used.
“One business, two loans” making credit more valuable
Loan is matched with a credit card, so the dual lines can lend full support for the circulation of funds.
Non-local pledge activating assets
A customer running business at place A can use the house at place B as the pledge, hence effectively solves the financing problem of non-local business owners.
Diversified guarantees making loans easily available
A variety of guaranteeing methods can be used, such as pledge, mortgage, and guarantee of market managing party, guarantee of specialized guarantee company, and mutual guarantee and combined guarantee of merchants.
Considerate services and flexible repayment method
Relying on the electronic channels including internet banking, telephone banking, and mobile banking, IB provides standardized and systemic quality services for customers in the entire lending process, as well as flexible repayment method to repay loan principal and interests in installments.
Dynamic pricing and preferential interest rate
Customers that have good settlement performance and repay loans normally may have the opportunity to have their loan interest rates lowered, thus reducing their financial expenditure.