Liquidity revolving loan

Business Overview

It refers to the working capital loan which can be withdrawn in a number of times, repaid in installments and recycled within the amount and term defined in the contract after the enterprise signs the Loan Contract with CGB in a one-off manner.

Features

Convenient, quick, flexible, active, reducing the financial cost of the enterprise.

Application requirements

1.        The production and operation activities shall comply with the national industrial policy, SAFE policy and the credit policy of CGB;

2.        The production and operation are normal with sound organization structure, operation management system and financial management system;

3.        The statutory capital and the lawful and reasonable self-owned operation capital shall be available;

4.        Good credit, with the capability to repay the principal and interest on time, no record of breach of contract;

5.        Already opened the basic account or general settlement account in CGB;

6.        The borrower who applies for the foreign exchange working capital loan must have the import-export operations rights, the reasonable foreign exchange revenue and spending and a certain capability to resist the foreign exchange risks (exchange rate risk, interest rate risk);

7.        Other conditions required by CGB.

Loan term

It normally does not exceed 1 year (including 1 year). The maximum period does not exceed 3 years (including 3 years).

Relevant documents required to apply for the loan

1.        Application form for loan;

2.        Annually audited business license of the borrower, corporate code certificate, tax registration certificate, and certificates of the legal representative;

3.        Valid loan card;

4.        Articles of Association and Capital Verification Report of the borrower;

5.        The financial statements of the last three years audited by the accounting (auditing) firm (balance sheet, profit-and-loss statement, chart of cash flow) and the financial statements in recent period for loan application. If the establishment of the borrower is less than three years, in principle the financial statements of every year and in recent period audited by the accounting (auditing) firm must be provided.

6.        The borrower or guarantor or mortgagor shall issue the board resolution (with signatures of quorum of board members, with name list of board members), shareholder meeting resolution, or approval documents and authorization letter of the competent authorities agreeing to the applied loan or offering guarantee.

7.        Based on the guarantee forms for the working capital loan, the following documents must be provided:

(1)       Annually audited business license of the guarantor, corporate code certificate, tax registration certificate, certificates of the legal representative, and valid loan card;

(2)       Articles of Association and Capital Verification Report of the guarantor;

(3)       The guarantor’s financial statements of the last three years audited by the accounting (auditing) firm (balance sheet, profit-and-loss statement, cash flow statement) and the financial statements in recent period. If the establishment of the guarantor is less than three years, in principle the financial statements of every year and in recent period audited by the accounting (auditing) firm must be provided.

(4)       List of pledges, value evaluation report, and ownership certificates.

(5)       Valid documents whereby the pledge must be approved by competent authorities according to relevant laws.

8.        Other documents required by CGB.