Loans are liquidity loans. It is both in the form of mortgages and in the form of credit. Credit, good business and stability of cash flow, i.e. smooth business sales. When a business operates well and cash flows are stable, there is no collateral, but there is still a guarantee that it will be repaid on time. With cash-flow loans, the difficulties of many SMEs could be addressed, as most of these enterprises do not have much collateral to apply for loans。

Loans are liquid capital loans, which take the form of mortgages and credit loans. When the business is operating well and the cash flow is stable, there is no collateral, but there is still a guarantee that it will be repaid on time. As most SMEs have few collateral to apply for loans, cash-flow loans can solve the problems of many enterprises. Liquidity loans are generally used to purchase, consume and store all types of finished, semi-finished and raw materials needed for production operations, or for seasonal reasons, all types of seasonal materials for production operations。

Type of liquidity loan: Temporary liquidity loan: to address the financial needs of the enterprise for temporary procurement and to cover other payment requirements; 2 short-term liquidity loan (within one year): the capital enterprise has insufficient working capital for its normal production and operations; 3 medium-term liquidity loan (1-2 year): to meet the needs of the enterprise that regularly occupies funds in its normal production operations。

Distinction between current and secured:

1. Different definitions. Liquid and fixed loans, i.e., liquid and fixed-asset loans. Liquid loans are loans granted to meet the needs of the production and operation of capital and to ensure normal productive activities; fixed loans are loans for investment in fixed assets of enterprises. They have different purposes, different loan terms and different loan income。

Different uses. Fixed-asset loans are generally used for capital fixed-asset loans that provide credit support for infrastructure, service facilities and new or expanded production projects; fixed-asset loans for technical upgrading, which provide credit support for technical-renovation projects initiated by enterprises to expand re-production; loans for the development of fixed-assets for research and development that provide credit support for new technologies, new product research and development projects; and loans for the purchase of fixed-assets for basic assets that provide credit support for the purchase of production, warehousing, office and other buildings or facilities。

3. The duration of the loan varies. Fixed-asset loans are typically medium-term loans of one to five years or long-term loans of five years or more; liquidity loans are typically divided into short-term liquidity loans of one year and medium-term liquidity loans of one to three years。

Income from loans varies. The return on investment in fixed-asset loans is generally stable over the long term; the income from liquidity loans is generally short- and medium-term。