As the economic environment changes, enterprises need to keep moving and developing, and finance is an essential part of business. Water-flow lending becomes one of the options when an enterprise needs to invest funds. So, what are the conditions for a run-off loan

What are the conditions for business-flowing loans

I. Duration of business

When an enterprise applies for a running water loan, the bank requests proof of business licence, tax registration, etc. For start-ups, it is difficult to obtain loans because of their short operating time. Therefore, if an enterprise wishes to obtain a bank loan, it is proposed to operate for at least two years。

II. Business performance

The ability of an enterprise to operate normally and to have a fixed customer is an important basis for a bank to determine whether it is eligible for credit. The bank assesses the financial statements of the enterprise, its business, its credit records, etc. Banks are more willing to consider their loan needs if they can prove that they are doing well。

Business credit records

The credit record of the enterprise is also an important factor in the assessment of the qualifications of the enterprise, and if the enterprise has a bad credit record, it is difficult for the applicant to obtain the confidence of the bank. Therefore, before applying for loans, enterprises should carefully maintain their credit records and establish a good credit system, which could provide guarantees for more credit opportunities in the future。

IV. Guarantees required by banks and modalities for repayment

When the business meets these conditions, the bank also requests the applicant to provide a guarantee. Bank requirements for loans vary from collateral to collateral. In the case of enterprises, the guarantees are in the form of real estate, vehicles, deposits, shares and commercial insurance. In addition, there is a need for a clear understanding of bank requirements for repayment modalities. Some banks may require explicit repayments by the enterprise, while others may be more flexible in their choice of repayments based on the business ' s actual situation。

V. Personal credit status of the head of the enterprise

The personal credit position of the head of the enterprise also has a significant impact on the credit of the enterprise. If the head of the enterprise had a bad credit record, it would be difficult for him to obtain bank approval as the person responsible for the business. Therefore, prior to applying for a loan from an enterprise, the head of the enterprise should consciously maintain a personal credit record and maintain good credit。

In the light of the above, the conditions required for a business to make a loan include the business's time, business status, credit records, the guarantees and repayments required by the bank, and the personal credit status of the head of the business. Before applying for a loan, an enterprise should carefully understand its business and provide sufficient supporting information to enhance its eligibility。