What does bank credit mean, what does credit mean

Credit refers to the funds directly provided by commercial banks to non-financial institution customers, or the guarantee of compensation and payment obligations that may arise from customers in relevant economic activities.

1. Different credit lines should be determined according to the operation and management level of different customers, the ratio of assets and liabilities, the ability to repay loans and other factors.

2. The amount of each loan and the actual total amount of loans should be specifically determined within the determined credit line, according to the actual capital needs, repayment ability, credit policy and bank ability to provide loans within the determined credit line.

Bank credit is the credit limit determined by a commercial bank according to the national credit policy and the basic situation of the customer. It is mainly used for corporate business. Specific to the company's business level, it is based on the overall operation of the enterprise, to give an enterprise a credit line.

The difference between a credit line and a loan

In simple terms, credit refers to the direct provision of financial support by a bank to a customer, or in related economic activities.

The act of providing credit guarantee to a third party. Due to the size of the scope, the aspects involved in credit extension are much larger than those of loans. Credit is a generic term.

Banks build credit relationships with their customers, but credit is more than just loans. Credit extension may include but is not limited to: loans, acceptances, factoring, letters of credit, discounts, etc., and loans are only one of the credit businesses.

1. Credit line.

That is, the amount of loan issued by the bank according to the borrower's qualifications and policies. Now basically credit is based on collateral or credit. If the borrower is able to provide collateral that meets the bank's requirements, the bank will calculate the credit line based on the appraised value of the collateral, which is generally 50% to 80%.

If the borrower is in good standing, the loan can be obtained without collateral. It's simpler.

2. Exposure amount.

To put it simply, it is the loan line of the enterprise, the amount of credit funds that the enterprise can actually use for payment, and the bank book loan or acceptance line is equal to the risk exposure.

The sum of the amount and the amount of the guarantee. For example, the bank gives you a credit of 1 million yuan, and you apply for a deposit.

50% of the bank acceptance bill with a face value of 2 million yuan, then you have used up the bank risk exposure of 1 million yuan. A credit of $1,000,000 is also known as open credit.

3. What is the difference between a credit line and an exposure line?

The scope of credit line is larger, which can be subdivided into loan line, letter of credit opening line, and export bill bill.

quota, the amount of letter of guarantee, the amount of bank acceptance bills, the discount quota of acceptance bills, etc. If the credit line of the bank to the enterprise is 3 million, the exposure limit is 1 million, and the other 2 million needs to be obtained by the enterprise to provide a margin, if there is no *** gold, then the actual amount is only 1 million, and the other 2 million cannot be withdrawn.

1. Bank credit is the guarantee that a commercial bank provides funds to customers of non-financial institutions, or guarantees the compensation and payment liabilities that may arise from customers in relevant economic activities.

2. Bank credit refers to the bank's credit to the buyer and seller or one party, usually referring to the bank's commitment to pay for the goods under certain conditions. The fact that a bank carries out credit business means that the bank assumes the responsibility for payment. The bank credit business is usually carried out when the two parties do not understand or trust each other, or the buyer's country has strict foreign exchange control or serious political instability, and its purpose is to make up for the lack of commercial credit with bank credit and promote the smooth progress of the first activity.

3. Bank loans are granted first and then loaned, that is, the bank will evaluate the borrower's current qualifications, credit status, repayment ability and other aspects, and will give the borrower a maximum loan amount after the assessment is passed. However, the bank credit is not a loan, and the borrower also needs to submit a loan application, and only after passing the bank's second review can it be regarded as a real loan. However, if the bank also checks the borrower's credit when granting credit, it will leave a loan approval inquiry record on the credit report.

4. By definition, the credit line refers to a flexible, convenient and recyclable credit product provided by the bank to the customer, as long as the credit balance does not exceed the corresponding business variety index, no matter how much the cumulative amount and number of issuances are, it can quickly provide short-term credit to customers. So, how is the bank credit line determined? In fact, there are two forms of determination, one is obtained by collateral, and the other is obtained without collateral and completely by personal qualifications.

The former means that the borrower can provide a house approved by the bank as collateral, and the credit line is generally about 70% of the appraised value of the house. The latter is commonly known as unsecured loans, and the general credit line is about 10 times the borrower's monthly income.

5. Credit is divided into short-term credit and medium and long-term credit according to the term. According to whether it is reflected in the financial statements, it can be divided into on-balance sheet credit and off-balance sheet credit, including loans, project financing, ** financing, discounting, overdraft, factoring, lending and repurchase. Off-balance sheet credit includes loan commitments, guarantees, letters of credit, bill acceptances, etc.

It is a loan amount given by the bank to this enterprise, and within this limit, the loan can be obtained by simply going through the procedure.

To put it simply, credit extension refers to the act of a bank providing direct financial support to a customer, or guaranteeing the customer's credit to a third party in the relevant economic activities.

Bank credit includes on-balance sheet business such as loans, ** financing, bill financing, financial leasing, overdrafts, and various advances. Credit is divided into short-term credit and medium and long-term credit according to the term. Short-term credit refers to credit within one year (including one year), and medium and long-term credit refers to credit for more than one year.

Characteristics of a line of credit.

1. The credit line can be recycled, so that the formulation of the company's financial plan becomes clearer and more organized, and there is no need to arrange funds for recurring business.

2. Meet the basic financing needs of enterprises. The credit line is set according to various credit business varieties such as loans, letters of credit and letters of guarantee, which basically cover the main financing needs of customers. With the consent of the bank, the quota of each individual product can be adjusted and cross-swapped, which improves the utilization rate of the quota.

3. Simplify the approval procedures for enterprise credit. After obtaining the credit line, the customer will decide the use of the credit line and the performance time according to the provisions of the agreement, and there is no need to report to the credit bank for approval one by one, avoiding the approval time of a single credit line.

Granted credit, has been used for inquiries.

The credit limit given by the bank based on the customer's credit profile.

Patent institution appointed by bank credit.

Bank credit refers to the funds directly provided by commercial banks to non-financial institution customers, or the guarantee of compensation and payment obligations that may arise from customers in relevant economic activities, including loans, ** financing, bill financing, financial leasing, overdrafts, various advances and other on-balance sheet business, as well as off-balance sheet business such as bill acceptance, issuance of letters of credit, letters of guarantee, standby letters of credit, letter of credit confirmation, bond issuance guarantees, loan guarantees, asset sales with recourse, and unused irrevocable loan commitments.

Credit extension refers to the act of a bank providing direct financial support to a customer, or guaranteeing the customer's credit to a third party in relevant economic activities.

Credit is divided into short-term credit and medium and long-term credit according to the term.

On-balance sheet credit includes loans, project financing, ** financing, discounting, overdraft, factoring, lending and repurchase, etc.; Off-balance sheet credit includes loan commitments, guarantees, letters of credit, bill acceptances, etc.

Off-balance sheet credit includes loan commitments, guarantees, letters of credit, bill acceptances, etc.

Credit refers to the provision of a certain amount of financial support to an enterprise or individual within a certain period of time according to its financial credit status and turnover needs. Credit extension generally appears in loans, acceptances, discounts, bills, letters of credit and other businesses. Credit extension has the following characteristics.

First, the credit line is a general term for the sum of several classified lines. More than just loans. For example, if an enterprise can borrow 200 million yuan, open a bank acceptance bill of 200 million yuan, and open a letter of credit of 100 million, then the total credit limit of the enterprise is 500 million.

Second, credit is temporal, and it is dynamic and cyclical in a certain period of time. For example, the acceptance classification quota of the above-mentioned enterprise in a year is 200 million, assuming that the enterprise does not need to pay a margin for issuing bank acceptance bills, and the enterprise has issued 200 million yuan of acceptance bills in the first three months, and the acceptance credit line has been occupied, and after half a year, these acceptance bills have expired and accepted one after another, and the enterprise has an open credit line and can issue new acceptance bills.

Third, the credit line can be changed and increased. The credit line provided by the bank will change with the national and local industrial policies and the strength of customers. Enterprises and individuals can increase their credit lines by providing more proof of financial resources and pledging pledged assets.