Allowing Enterprises to Apply for Loans Constantly without Repaying the Principal
For small- and mini-sized enterprises having mortgage or not, Industrial Bank (IB) has carefully created suitable financial products. Recently, IB launched “consecutive loan” for small- and mini-sized enterprises with loans, helping enterprises to further ask for other loans without repaying the principal. In this way, they can easily solve their financing problems.
Further loans allowed without requiring the repayment of loan
“Another loan can be applied without repaying one loan that becomes mature, which can save a considerable amount of capital circulation cost. To enterprises, this convenient method can bring substantial benefits!” said Mr. Li, who has just finished all formalities for business application.
It is said that Mr. Li, who runs a building material company in Changsha, has had business cooperation with IB for years. A working capital loan of the company in IB would become mature soon, and an officer of the bank introduced “Consecutive Loan”, which has been launched freshly. Mr. Li lost no time to go through the business formalities with the bank.
What makes him become so interested in the new product, Mr. Li said, is that it brings great convenience to enterprises. “Previously, I have to arrange funds to repay relevant principal temporarily every time when a loan becomes mature each year. Sometimes, it is really a big headache for me if the funds are not enough. Now, I can ask for a further loan without repaying the mature principal. Not only are the formalities simple, but it can save a considerable amount of financial expenditure. It's really terrific!” Mr. Li spoke highly of the benefits of “Consecutive Loan”.
Constant upgrading of financial services to small- and mini-sized enterprises
A relevant officer of IB Changsha Branch introduced that “Consecutive Loan” was an innovative financial product for small- and mini-sized businesses that IB released with a view to further improving the financial services to small- and mini-sized enterprises and effectively settling their actual difficulties in the process of financing.
“Through connecting loan extension and repayment in a seamless way, this product makes innovation in the method to repay working capital loans, thus reducing the financing cost of small-sized enterprises.” It is reported that, after borrowing loans from banks, small-sized enterprises generally face the pressure of “further loan after repayment” upon the maturity of their loans. Targeting at small-sized business borrowers meeting the given requirements, the product of “Consecutive Loan” requires no repayment of principal upon the maturity of an existing loan. By connecting loan extension and repayment in a seamless way, a borrower can continue to use the borrowed funds after the maturity of original credit extension. The product enables small-sized enterprises to solve their financing problems readily.
As one of the first group of joint-stock commercial banks entering Hunan, IB Changsha Branch, in recent year, adhered to sinking its service focus and fully upgrade the financial services to small- and mini-sized enterprises. It has established more than 10 specialized business departments, achieving the specialized operation of businesses for small- and mini-sized enterprises. In the meantime, the branch intensified its business innovation and consolidated resource guarantee in various channels, launching a number of products successively like Fast & Quick Loan and Consecutive Loan. Now, it has provided financing services to more than 1,200 small- and mini-sized enterprises across the province. The specialized operation system of the branch provides strong support for the financial services to small- and mini-sized businesses and will provide more distinctive financial services for small- and mini-sized corporate customers.