What is the second article in a bank loan basis?

Generally speaking, whether personal loans, or loans, or loans, loan basis is in ensuring the future free cash flow to cover the principal and interest of loans, plus some guarantee measures can.

There are two small problems, what is free cash flow, what is the guarantee measures.

Look at the first, free cash flow, that is the income drop everything must be spending the rest of the money. For the individual concerned, basic necessities of life eat is necessary expenditure, need to reduce. For enterprises, wages, raw materials procurement, marketing costs and so on should be used. Of course, this explanation is not accurate, but easy to understand. The classic about free cash flow definitions refer to Baidu encyclopedia, but every time I look after the report problems encyclopedia is more confused.

Can the free cash flow coverage loan interest since it is a premise, that how to measure? The principal and interest of the loan is easy to calculate, the future free cash flow is a very troublesome thing. Free cash flow itself has a lot of argument, in addition to recognized the need to reduce outside, also some statements in the sub item is subtractive can not reduce the. Plus is to be the future, only in the past as the basis, the judges choose the parameter to be estimated, the measured results it is quite inaccurate. The same statement for three different judges, also in accordance with the classical formula results may be obtained very big gap. Because this a few small parameter selection, that is really the least bit of difference difference.

The bank is how to limit the judges "subjective"? This is also a way. In the review before, will carry on the rating of the company, there is a judgment on the current macro economy, industries, companies, each judge the corresponding parameter range a review, such as coal, this parameter only in the0.9-1.1To choose between, chemical only in the0.5-0.6Choose between. But this whole although little difference of each parameter, but also accumulated large differences. This is the original intention of the audit committee, a committee to check, the front end of the judgments and ratings, into the parameter end choice, later the results from calculation, stroking it.

That is to say, after which the Committee approved the results show that, the future free cash flow to cover the principal and interest of the loan, the loan should be guaranteed.

Of course, the future from which it has guaranteed (the future free cash flow) is not enough, if this does not guarantee reliable country, the economic situation changes, the industry cycle changes, and even business leaders suddenly prison, which is not a risk. The pursuit of banks is theoretically no danger of anything going wrong. So the bank may require the enterprise to guarantee. It is said the second problems of guarantee measures.

There are also several guarantee measures, several under again several, quite complex. Simply put, adult and animal protection. For an individual, you buy a house mortgage, the house mortgaged to the bank, this is the material guarantee; your business, looking for a bank loan, the bank to allow you to find the civil servants, teachers, doctors to give you security, this is the people's insurance. So to the enterprise, the small and medium-sized enterprise want to loan, the bank so that you find a professional Guarantee Corporation, the people's insurance, but that is "people" "". Ordinary business loans with mortgage, plant and equipment, is the material guarantee. The parent company of the listing Corporation with subsidiary equity pledge, transport department take the highway toll right, government with land usufruct is the material guarantee of future. But these measures, banks are still not assured, if the collateral damage or lost how to do? So banks and measures.

According to the regulations of bank devalued, the mortgage rate shall not be higher than70%That is to say, you have one million pieces of the house, you can apply for the highest70Million loan, leave adequate leeway. Aiming at the damage, banks require collateral to purchase property insurance. In case of fire or be split by the thunder, the insurance company will compensate to the bank directly. So is the project loan, but Paul is not property insurance, or because the projects rather than fixed assets, so the liability insurance construction. For example, loans to the metro, Metro is dug, suddenly which collapsed, reoccurrence in a car two, insurance companies, banks will not because of the accident cause asset quality is influenced by the.

To sum up, in the implementation of the source of repayment conditions (the future free cash flow to cover the loan principal and interest), have credit structure perfect (the value of the collateral to cover the loan principal and interest of loans and collateral reliable), can be successfully to obtain bank loans.

Ps: mentioned above, mostly for example, the actual situation is more complex, and a formula for calculation, each bank regulations are not the same. Something is better than nothing..,.