As the name implies, financing is the need to integrate funds. Loan is just a suffix explanation, which is actually a financing method for enterprises or individuals. However, this way of borrowing is not to issue bonds or stocks, but to apply for loans from lending institutions to achieve the purpose of financing.

The types of financing loans are as follows:

1, classified by collateral: credit loan and secured loan;

2. Classification by term: short-term loans, medium-term loans and long-term loans;

3. According to the source of funds: policy bank loans, commercial bank loans, insurance company loans, etc.

Extended data:

Common forms of financing loans:

1, bank loan

Banks are the main financing channels for enterprises. According to the nature of funds, it is divided into three categories: working capital loans, fixed assets loans and special loans. Special loans usually have specific purposes, and their loan interest rates are generally favorable. Loans are divided into credit loans, secured loans and discounted bills.

2. Stock financing

The stock is permanent, has no expiration date, does not need to be returned, and has no pressure to repay the principal and interest, so the financing risk is small. The stock market can promote enterprises to change their management mechanism and truly become a legal entity and market competition subject with independent operation, self-financing, self-development and self-restraint. At the same time, the stock market provides a broad stage for asset reorganization, optimizes the organizational structure of enterprises and improves the integration ability of enterprises.

Bond financing

Corporate bonds, also known as corporate bonds, are securities issued by enterprises in accordance with legal procedures and agreed to repay the principal and interest within a certain period of time, indicating that there is a creditor-debtor relationship between the issuing enterprises and investors.

Bondholders do not participate in the operation and management of the enterprise, but have the right to recover the agreed principal and interest on schedule. When an enterprise goes bankrupt and liquidates, creditors have priority over shareholders in claiming compensation for the remaining property of the enterprise. Corporate bonds, like stocks, are securities and can be freely transferred.

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