Chapter 13 Chapter 12 Debt, what is bad debt?

The bad debt here refers to the debt that has been delayed for a long time and cannot be collected. It is not the debt that you cannot collect from others, but the debt that others cannot collect from you.When you have nothing and struggle to survive, others trust you and lend you money.At this time, the only thing you can mortgage is your own character and integrity.Therefore, for entrepreneurs, the most fundamental and important thing is to be honest.Once you borrow money from others, you must honor your promise no matter what when it comes time to pay it back.If an entrepreneur loses his integrity, it is really dangerous.

Generally speaking, the way entrepreneurs raise funds is nothing more than the following: own funds, borrowing from relatives and friends, and bank loans.Venture capital is best owned by oneself, that is, to raise funds from one's own savings or the realization of one's own movable and immovable properties.This is the option with the lowest risk, and it is also the least painful way to realize your personal entrepreneurial dreams and psychological pressure.Because the venture capital comes from myself, I will be fully responsible for myself, and I will make my own decisions on every advance and retreat, without complaints, and without worrying about gains and losses.If you win, you will prove your ability, and if you lose, you will also reflect on your shortcomings, and you don't need to bear more pressure and pain for this.

Of course, we are not opposed to borrowing money from others, but the proportion should not be too large, especially for small capital ventures, it is best to have more than half of the funds to pay, because borrowing money from others is easy to go to two extremes, or worry about gains and losses, and the pressure is too great , can't afford to lose; or use other people's money to do business, so ambitious, rash and unrealistic, anyway, it's other people's money, unless you win a big one, you won't turn back.These two extremes are very harmful to entrepreneurship. Therefore, for the sake of caution, if you start a business with a small capital, debt management is not a good form, because it creates too much psychological pressure on entrepreneurs, and when projected into actual actions, it is easy to cause entrepreneurs to worry about gains and losses and shrink their hands; If the funds for debts come from loans from relatives and friends, in case of entrepreneurial failure (according to statistics, the proportion of domestic entrepreneurs who fail for the first time is more than 70%), it will seriously deteriorate your interpersonal relationship and even endanger your living environment, so you must not Not careful.If you are not particularly sure, it is recommended not to go into debt lightly, rather start small and take it step by step.

But then again, when any business is in urgent need of cash flow, the same is true for small businesses.At this time you have to deal with the bank.As far as the current investment environment is concerned, it is much easier for entrepreneurs to borrow money from banks than before. However, some banks are afraid of taking risks and will still refuse loans to businesses that have "no prospect" and it is still not easy to get loans.At this time, your credit history becomes very important. Internet credit can also get loans Xu Miaogang's enterprise was founded in 1997, specializing in the production of paper barrels of various specifications, and some products are exported.Later, he registered as a member of the Alibaba e-commerce website.By chance, he learned that China Construction Bank and Alibaba had released a message, relying on the credit rating of the enterprise's e-commerce and passing the bank's investigation of the integrity of the enterprise, the enterprise can obtain a loan.With the idea of ​​giving it a try, he submitted a loan application.

"Unexpectedly, the staff of Hangzhou West Lake Sub-branch of China Construction Bank came to the door immediately." Xu Miaogang remembered that the staff came three times. They went to the bank, checked the account book, and checked the report. "In mid-June, the bank notified me to sign and agreed to issue a loan of 300,000 yuan." Lu Ming, a customer manager at the Xihu branch of China Construction Bank who has been in contact with Xu Miaogang's company, said that after investigation, the factory has several relatively fixed upstream and downstream companies, and their performance has been increasing year by year.Looking at the financial statements is also refreshing, and they have a bottom line in their hearts.When granting loans to small and medium-sized enterprises, banks attach great importance to the quality of legal persons, especially integrity management.Although this enterprise's e-commerce has not been in development for a long time, its online credit rating is well reflected, and such an enterprise meets the conditions for bank lending.Therefore, the credit on the Internet helped Xu Miaogang get a loan.

In stark contrast, when a company that uses the cinders of a thermal power plant to make bricks applied for a loan, all the conditions of the company were met, but when reviewing personal credit, the investor was "lost the chain" - a company in which it had a stake had 2 million yuan in arrears. For small entrepreneurs, many people have no guarantee or fixed asset mortgage, and often need to apply for personal credit loans, so credit is undoubtedly the most important.Whether the car loan or housing loan is overdue, whether there is tax evasion, whether there is any stain on the past business record... How credit is has become one of the key factors for a company to obtain financing smoothly.

At present, many banks have opened the "personal entrepreneurial loan" business.The loan amount varies from bank to bank according to regulations. According to the individual's resource status and repayment ability, a single loan of up to 500,000 yuan can be obtained.A hallmark of the business, however, is the rigor of the assessments.The reason why banks are cautious is that the amount of entrepreneurial loans is generally small, and the cost of a single transaction is high. If the loan cannot be repaid, the cost of litigation and execution procedures will make the bank lose more than it can gain.The personal credit of the lender is the biggest bottleneck in the promotion of entrepreneurial loans. In our country, there is no effective method and way to define personal credit, so banks naturally dare not lend money easily.

In foreign countries, individual entrepreneurs can obtain investment and management based on their credit, but in China, due to the lack of personal credit, those who intend to start a business can only look at the high threshold of entrepreneurial loans.Therefore, people in the industry have been calling for accelerating the implementation of the personal credit system to avoid the high risk of bank credit, reduce economic disputes caused by the lack of personal credit, and help citizens create wealth.Now this appeal has been implemented, and the national unified basic database of personal credit information is being gradually promoted, which can fully reflect a person's credit status.

Anyone who has obtained a loan from a bank or has applied for a credit card will have their own credit history.Once on the credit "blacklist", the financial institution services you enjoy will definitely be affected.But if you really accidentally have a bad record, don't worry too much.Because each financial institution has different understandings and regulations on personal credit data, consumers on the "blacklist" may be refused transactions by a financial institution, but there may also be financial institutions that ignore this factor and continue to communicate with consumers. Trading.

For example, if you have a mortgage loan from Bank A that is not repaid on time, when you apply for a loan at Bank B to buy an LCD TV, Bank B will check your personal credit information in the database.If you think that your bad mortgage record will affect this normal transaction, your LCD TV will be ruined.But if Bank B believes that you failed to repay the mortgage on time, but you can repay the TV loan on time, then it will not suspend the transaction because you are on the "blacklist".But no matter what, it is impossible to eliminate this bad record in a short period of time, so it is better to maintain your reputation carefully at all times.

Because the vast majority of start-up companies do not have sufficient assets or operating history to allow banks to take risky investments, banks often require the person in charge of the business to use personal assets as collateral for a loan. Generally speaking, bank business loans require collateral.However, according to the different scope of mortgage, it is divided into mortgage loan and pledge loan.Mortgage loan refers to a loan granted with the property of the borrower or a third party as collateral in accordance with the mortgage method stipulated in the Guarantee Law.At present, banks mainly carry out mortgage loans for houses and cars.When applying for a mortgage loan, the bank should keep the relevant property rights certificates of the collateral, especially for house mortgages and car loans. You can use the house and drive the car, but strictly speaking, these property rights have been mortgaged to the bank. All you have is the right to use it.At present, car mortgage loans generally do not exceed 80% of the car purchase price, and the longest loan period does not exceed 5 years.For housing mortgage loans, the loan amount generally does not exceed 60% of the appraised value of the commercial housing, and the loan period does not exceed 10 years. At the same time, banks have also set up personal loans pledged by deposit certificates, treasury bills, insurance policies, personal credit and other credit resources.At present, the more common ones are certificates of deposit and treasury bills pledged.The starting point of a deposit certificate pledge loan is generally 5,000 yuan, and each loan does not exceed 80% of the pledge face value, and the loan can be obtained on the same day at the bank branch.The starting point of a national bond pledge loan is 5,000 yuan, and each loan does not exceed 90% of the face value of the pledged national bond; the longest loan period generally does not exceed the maturity date of the certificate-style government bond. The term of the loan is determined by the one closest to the due date.In addition, if the written consent of relatives and friends is obtained, and the valid identity documents of the relatives and friends are presented at the same time, the certificate-style treasury bonds of relatives and friends can also be used for pledge loans. After understanding the possible ways of mortgage loans, let's see how to obtain mortgage loans: If you really need funds urgently and lack the collateral that meets the bank's requirements, you may consider looking for a professional guarantee company.However, this will cost a lot of money to the guarantee company. According to relevant regulations, the guarantee institution must charge the borrower no more than 50% of the bank loan interest rate of the same period, and some companies will also charge some risk compensation in other names.Some experts suggest that some enterprises with better operating efficiency can be considered, and the scope of business they operate belongs to the industry encouraged by the state, so that it is easier to obtain bank loan support. In addition, banks generally favor lawyers, doctors, civil servants, employees of public institutions, and financial industry personnel. Such people are listed as preferential targets for credit loans. If there are such relatives, it is easier to apply for loans in his name through the bank approval. An industry insider reminded those who are interested in starting a business that if they want to take the road of loan financing, they must first consider whether the profit from loan operations exceeds the bank’s loan interest expenses and other expenses; You should know how much you need to borrow. However, it should be pointed out that no matter what kind of loan you apply for, you must repay the principal and interest on time according to the requirements of the contract. If you fail to repay the loan on time, the bank will charge a certain late payment fee, and will seize the mortgage and pledge according to the situation, and hold the guarantor accountable. responsibility and other measures.In addition, the bank will also record the credit status of the borrower as "bad". After the credit system is improved, once the borrower has a bad record, he will be "blocked" in all banks. Failed to start a business and lost a house Xiao Zhou is a shrewd and capable young man who started working in an internet company after graduating from university.After several years of experience, he thinks that he already has a relatively in-depth understanding of the operation of the Internet industry, and knows that the capital required to start a small Internet company is not too much, and three to five hundred thousand yuan is enough. But he didn't even have 100,000 yuan, so he could only stare blankly.Later, an elder passed away and left him a house. Xiao Zhou immediately decided to use the house as collateral and borrow 300,000 yuan from ICBC as start-up capital to realize his entrepreneurial dream. However, the business is not as easy as Xiao Zhou imagined.Although he is proficient in business, his finances are chaotic.Since he has just started his business and has not hired any professional accountants, he believes that the market is the fundamental driving force for the survival and development of a company anyway. As a leader, market knowledge is more important than financial knowledge; when it comes to management, sales reports are more important than financial reports. Tempting; to make a decision, the survey data from the market is more critical than the budget from finance.As a result, his financial problems soon appeared. Since he could not pay the monthly debts to the bank, and he had no money to repay the loan when it was due, the bank mercilessly auctioned off his mortgaged house.So far, his "entrepreneurship" has failed, and he has returned to the original state of having nothing. Xiao Zhou's situation is not bad, at least he is not homeless.But others are not so lucky.Most people have houses but no money, so the majority of borrowers use real estate as collateral.Essentially, a Personal Mortgage Guarantee means you promise the bank that if the business fails to make the payments, you will use your personal property to pay the repayments.Banks will require business owners to use family assets as collateral for loans.You can walk away if your startup fails, but don't think you can just throw away a defaulted loan just as easily.While banks are generally reluctant to foreclose on private homes to cover losses on small business loans, know that banks have the right to auction off your property if they cannot recover the loan through other means, and they will. Moreover, if you encounter difficulties when starting a business, such as slow capital turnover, low profit efficiency, investment decision-making mistakes, and lack of capital chains, etc., if you cannot repay the bank loan on time, it is quite troublesome to postpone the repayment. Therefore, successful individual entrepreneurs point out that in the initial stage of entrepreneurship, it is best to minimize the cash investment. If the one-time investment is less than 50,000 yuan, try to use private funds as much as possible; if the one-time investment is more than 100,000 yuan , borrow social hot money as much as possible.After all, these two loan methods are relatively flexible, and the repayment method can also be directly negotiated with the parties, which is of great benefit to individual entrepreneurs, especially first-time entrepreneurs. It is well said in "The Wealth of Nations" that each of us exists as a broker, and only when the salaries and benefits of employees are guaranteed, will they work seriously.Every employee has an assessment of his own value, and he will make horizontal and vertical comparisons over time. As a boss, he must not only ensure that he cannot default on the work of his employees, but also re-evaluate the value of employees at an appropriate time , adjust salaries to suit employees' abilities and development. Pretend to be smart and ask for trouble A certain company uses the last day of each month as the salary payment day, and Ms. Zhu has been doing this for more than two years since she joined this company.Since Ms. Zhu's contract was about to expire in July this year, the company decided not to continue the contract with her, so Ms. Zhu gradually lost her share in some remuneration. At the end of May, the vice president of the company suddenly called Ms. Zhu and several other employees to the office, explaining that due to the company's recent shortage of operating funds, the salary of the employees will be delayed for one month, and please keep quiet.Ms. Zhu didn't realize anything at first, and she continued to work as usual, until she accidentally learned that most of the employees were still paid on time at the end of May, and only some employees whose contracts were about to expire were owed wages.Ms. Zhu was very angry, thinking that she would not stay in the company for a long time anyway, so she went to the vice president to argue.The vice president took out the "Labor Law" and pointed out that due to the poor operating conditions of the unit, the company can delay the payment of employees' wages for one month.Ms. Zhu was very angry. Could it be that she was at a disadvantage like this? She found a friend who is a lawyer for consultation, and the friend told her that it is very irresponsible for the company to deceive employees under the cloak of legality.Our country's "Labor Law" does have regulations on employers' delayed payment of wages, but the delayed start requires certain procedures.Their unit has not obtained the consent of the labor union of the unit at all, and has not filed a record with the competent department or the labor and social security administrative department, so it cannot be used as an excuse to delay the payment of wages. But what to do?A friend suggested that Ms. Zhu might as well use the boss's cleverness to strive for greater benefits for herself.Because Ms. Zhu's labor contract only expired in July, and the company's wage arrears has become a fact, the employee can take the initiative to terminate the labor contract due to the fault of the employer according to the above clauses.Because according to the "Shanghai Enterprise Wage Payment Measures", "If the employer deducts or defaults on the wages of the laborer without reason,..., in addition to paying the wages of the laborer in full within the specified time, it shall also pay 25% of the deducted or delayed wages. % of the compensation.” In addition to being able to get the corresponding wages, Ms. Zhu can also ask for 25% of the compensation.Ms. Zhu has worked in this company for more than two years, and she can get at least two months of salary compensation.This is not the case when the contract expires and the labor relationship is terminated.In this way, the boss had no choice but to overpay Ms. Zhu's salary by two months. This is the so-called "you can't lose money by stealing chickens", and Ms. Zhu's choice of job-hopping seems to be correct.In any case, the boss's credibility and character are questionable if he defaults on the employee's wages for no reason.It is impossible for such a company to become bigger and stronger by deceiving its own employees for a little profit. The case is that you have to pay wages even if you sell iron. One morning two days before returning home, more than 20 employees of the Little Double Goose Garment Factory received their one-year wages.Apart from being happy, there was also an indescribable touch in their hearts.Because they knew that the salary was raised by the female boss after nearly half a month of borrowing everywhere. Little Double Goose Garment Factory recruited 25 migrant workers at the beginning of the year.But at the end of the year, the company encountered temporary operating difficulties, and the loan of more than 100,000 yuan outside was not recovered in time.Faced with a liquidity gap of more than 200,000 yuan, the female boss was at a loss, and each of the employees began to worry about whether they could get their hard-earned money for a year as they wished. According to the original agreement, the day for migrant workers to return home is coming. Xu Shui'e, the owner of the children's clothing business for six years, feels that no matter how difficult it is, he cannot default on the wages of migrant workers.Business used to be good, and she paid migrant workers wages in full and on time every year. Although it is a bit more difficult now, she thinks that wages must be paid even if they sell everything.So Xu Shui'e raised funds from around the world, borrowing money from relatives and friends, and finally got nearly 80,000 yuan, raising all the wages of migrant workers.She settled the wages of the migrant workers overnight, and quickly settled all the wages for the migrant workers the next day. As a result, just after the new year, these employees rushed back to start work.And said that it doesn't matter even if the boss has no money to pay them now, because they trust her. If the above case is a negative example, this is a positive example.The so-called "the one who wins the hearts of the people wins the world", only when the boss has the loyalty of the employees, will they be willing to work hard to make the company grow and develop.Now that you have promised to pay your salary every month, no matter how difficult it is for you, you have to find a way to do it. This is not only a matter of integrity, but also a matter of your career success or failure. As far as China's current situation is concerned, state-owned enterprises (with bank support, and can even get loans for up to 10 years) will not have the problem of "short-term loans and long-term investment".But in private enterprises and small and medium-sized enterprises, this problem is very serious.Because private enterprises and SMEs generally have poor financing channels, they have to use short-term funds for long-term projects.On the surface, it looks like a good deal, and it is easier to obtain a loan.But in fact, is this really the case? When Shi Yuzhu summed up the lessons of his failure later, he said: I made mistakes because I did not understand financial knowledge at that time, and invested a large amount of working capital in the construction of fixed assets, which resulted in the drying up of working capital of the enterprise.Enterprises are also dragged down by this, and finally can't support it anymore.On Wall Street, companies that raise new financing for large-scale mergers and acquisitions are often called opening Pandora's box.In other words, before the dream of mergers and acquisitions is fulfilled, if the capital operation fails, the entire enterprise will be damaged. Twenty years ago, there were 84 founding members of the Zhejiang Chamber of Commerce, but now there are only two left; in the past 20 years, there have been seven presidents of the Zhejiang Chamber of Commerce, two of whom are now unable to find out the whereabouts of many parties.This data coincides with the statistics of the Zhejiang Provincial Administration for Industry and Commerce: According to the statistics of the Zhejiang Provincial Administration for Industry and Commerce, there were 7,260 private enterprises registered before 1988 in the province, and only 1,078 still exist so far; the private enterprises registered in 1989 There are 1035 in total, and only 351 are left so far.why? This is the era of big waves washing the sand.Small and medium-sized enterprises have relatively weak ability to resist risks. If there is a problem with their own management, it is easy to fail.In the first few years before the macro adjustment, China’s credit policy and local land policy were relatively loose. Many manufacturing companies in the rapid development stage took land, built factories and purchased equipment in order to meet their own production and operation needs. Except for a certain proportion of self-raised funds, the rest is borrowed from banks, but all loans are within one year. However, with the increasingly fierce competition in the industry and the rising prices of raw materials, the profit margins of manufacturing companies continue to decline, such as low-voltage electrical appliances, textiles, printing and other industries, even as low as below 5%.This often leads to the fact that it is almost impossible to recover the funds invested by enterprises in fixed assets in a short period of time. That is, after the one-year loan expires, the enterprise will face huge pressure to repay the loan, or even be unable to repay the loan at all.At the same time, the production and sales of some enterprises are increasing every year, which also means that the development of business operations is also facing a certain pressure of funding gap.Under the above-mentioned dual pressures, some business owners got away with relying on their financing ability in the private market, but they were struggling and trembling, but more companies that were not so lucky went bankrupt because of this.All of these are worthy of warning for you who are starting a business. One careless move and everything is lost Delong is unique in China's corporate world in terms of the scale of the financing and its intricacies.It is precisely by virtue of these legal and illegal financing methods that Delong has developed into a huge enterprise group.Delong's industrial integration requires a large amount of long-term investment, and it often relies on short-term financing from banks and other institutions to maintain a balance of funds.But this is a dangerous balance. Once the capital chain is broken, the consequences will be disastrous.However, the vast majority of these funds are short-term financing, which was used by Delong for the external expansion of the industry.As we all know, Delong's industry is dominated by traditional industries, with slow returns.Such short-term loans and long-term investments are tantamount to playing with fire. In 2004, with the increasing doubts about Delong and the introduction of national macro-control policies, the confidence of Delong's customers was shaken, so the capital chain of "short-term loan and long-term investment" was broken, and the game was over.Delong tried his best to build a capital aircraft carrier through short-term loans and long-term investment, but he failed miserably in the end, warning the future visionaries in an almost tragic way. A newly established agricultural and sideline products processing company in Hubei has eagerly purchased a large number of equipment for a high starting point in its business.It was soon discovered that the existing factory building was far from enough to install new equipment, and a new factory building was needed.A large amount of investment is required to build a new factory building. In order to purchase equipment, the funds in the company's account have been almost exhausted.In desperation, they had to turn to the bank for help.After several twists and turns, I finally obtained a sum of money from the bank in the name of preparing materials.The company invested the money in the construction of a new factory, forgetting that it was a short-term loan.The new factory has just been built, and the time for repayment has come.Before the company got the loan from the bank, the bank applied to the court to seal up the company's original factory building and newly built factory buildings and machinery and equipment. The company fell into a desperate situation for a while. There is nothing wrong with borrowing money, almost every business has the experience of borrowing money.However, using short-term bank loans to invest in fixed assets is a taboo in the company's financial management, which will greatly increase the investment risk of the company and may endanger the normal operation of the company.Therefore, as a business manager, you must understand some basic financial knowledge. If you don't understand it, you have to spend time learning it carefully, otherwise you will suffer a big loss sooner or later. For entrepreneurs, when it is really difficult to obtain financial support, short-term loans and long-term investment are not completely unfeasible, but the most fearful thing is that the enterprise is temporarily in a state of enthusiasm, indulging in industrial integration and substantial expansion, although this looks very good , but once the macro-control comes and the country tightens the credit policy, it will no longer be able to obtain "short-term loan" funds, and the capital chain will immediately break.It is more difficult to raise funds through other channels, and problems arise one by one. In May 2004, the well-known Pricesmart (hereinafter referred to as Puma) supermarket chain, which was the first to implement a membership system in mainland China, owed suppliers more than 2 billion yuan in payment, and hundreds of suppliers demanded payment in its flagship store. , rushed into the Changsha branch of Puma, causing a storm of looting.As a result, the national chain case of Puma taking away the supplier's payment was revealed. In March 2005, 48 Puma stores across the country were completely closed. Puma owed more than 2 billion yuan in debt, and Liu Wuyi, the chairman, left the country.In less than a year, the "business giant" whose domestic sales reached 4 billion yuan collapsed at a shocking speed. Blindly bullying suppliers, the last one will be the retailer himself.At the present stage, large shopping malls introduce factories into their stores, while supermarkets occupy suppliers’ funds and products for free. In this way, retailers lose their ability to operate on their own, and retailers simply become the organizers of operations. What they operate is not Commodities but suppliers.If suppliers are pissed off, eventually retailers themselves will suffer. If entrepreneurs want to run a merchandising business, they must take warning.If you occupy the supplier's payment for a long time, it will affect the return of funds from the factory. Once the supplier closes down, your daily operation will also be affected; The price will eventually pass on the risk to consumers, and it will not have a beneficial impact on you. Arrears of payment became the defendant Xiao Zhu and Xiao Wang are classmates in a college in Shaoxing. They once sold sporting goods together and worked as a housing agency. After a few years, they not only paid for the expenses during college, but also added a lot of fun to life and exercised practical skills. ability. With the continuous expansion of the business, the two students were not satisfied with the original small business, and felt that they should "make it bigger", so they wanted to sell MP3s and radios in the school.And alumnus Zhou happened to have a purchase channel, and the three hit it off.As a result, the two officially started consignment sales of electronic products, and Zhou provided them with goods worth more than 12,000 yuan. But after a year of doing business, the business was not going well. Zhou couldn't receive the payment for the goods for a long time. In desperation, he sued Xiao Zhu and Xiao Wang to the court.The two defendants both studied law, but during the trial, they could not produce enough evidence to prove that they had paid off the purchase price, but they just denied it. The focus of the dispute between the two parties was several receipt lists and receipts.Zhou showed the documents with their signatures, and Xiao Zhu said that he had paid off the payment for the goods. These documents cannot be used as evidence of arrears, but only as a confirmation of the number of goods.But Xiao Wang admitted that he did owe money to Zhou.After the trial, the court held that the facts of the case were actually very simple and clear, and the two college students should jointly pay Zhou a purchase price of more than 12,000 yuan. Arrears of payment is a fatal risk for new enterprises.If you have no business reputation from the very beginning, how can your small business develop without the support of suppliers?The financial difficulties caused by your own careless management are not the reason for defaulting on the payment of others. As far as serious arrears of payment are concerned, at least three serious consequences will be directly caused: one is that the supplier is short of funds or even the capital chain is broken, making it difficult or impossible for the enterprise to operate; It will affect the wages and benefits of the internal employees of the enterprise, and damage the rights and interests of the employees of the enterprise. Normal business. Maybe you will think that arrears of payment or final payment are commonplace now, and it is not that serious.It is true that many large supermarkets or department stores are in arrears with their suppliers, but as long as it is not so serious that the suppliers cannot tolerate it, they will still supply the goods, because they cannot afford to offend their big customers.But it is different for you as a small business. If you lose their support and reputation in the industry, your survival will be more difficult. What should I do if I want to start my own business but have no funds?Small business loans can solve your urgent needs.Start-up loan refers to a special loan issued by an individual with a certain production and operation capacity or already engaged in production and operation activities, who applies for capital needs for starting a business or re-starting a business, and is granted an effective guarantee by the bank.Qualified borrowers, according to their personal resources and repayment ability, can obtain a single loan support of up to 500,000 yuan; for those who start a business to a certain scale or become a re-employment star, they can also apply for a higher loan amount.The term of start-up loans is generally 1 year, and the longest is no more than 3 years; in order to support laid-off workers to start their own businesses, some banks have appropriately lowered the interest rate of start-up loans; many regional governments and banking departments jointly launched start-up loans for laid-off and unemployed workers You can enjoy 60% government subsidy. The repayment period of small loans is one year, and the interest rate is determined according to the loan interest rate level announced by the People's Bank of China, and shall not fluctuate upwards.Moreover, in order to encourage entrepreneurship, the policy stipulates that government discounts will be implemented for 19 low-profit industries.These 19 industries are: cottage industry, repair and repair, book lending, hotel service, catering service, dyeing and sewing, copying and typing, hairdressing, small dining table, canteen, moving, hourly service, household cleaning and sanitation service, primary health care service, baby Child care and education services, education training and boarding services for children with disabilities, elderly care services, patient care, child care and student pick-up and drop-off services. Moreover, the six groups of people do not need a guarantee to apply for a small-amount secured loan for entrepreneurship, and the items of relatives and friends can also be used as collateral for guarantee.The six groups of people are: individuals with no bad credit records, and entrepreneurial projects proposed after entrepreneurial training that have passed the evaluation and identification of experts jointly invited by the municipal labor security, finance, and financial departments; families with low-income guarantees provide reliable guarantees for each other; laid-off and unemployed people. Loans; hold a personal credit certificate issued by the community; obtain the "Entrepreneurship Training Qualification Certificate", and the entrepreneurial project has been jointly invited by the municipal labor security, finance, and financial departments to demonstrate and pass; model workers above the county level, advanced individuals for re-employment, and advanced professional skills Personnel with professional titles apply for small secured loans.If several people jointly organize a partnership to start a business, the main person in charge can also handle the guarantee procedures in a unified manner. Small loans realize entrepreneurial dreams When the company was first established in 2005, there were only 5 employees, and the company's output value was 1.5 million yuan; in 2007, it has grown to 10 employees, and the output value will reach 3 million yuan.In the past two years, Qingdao Donghengmao Aluminum-Plastic Engineering Co., Ltd., founded by Pang Zengyu, a landless farmer in Shizuizi Village, Jiaonan Economic Development Zone, has made progress every year, and the business is booming. "It's all thanks to the small subsidized loans for entrepreneurship in the city!" When talking about the development of his career, Pang Zengyu was filled with gratitude. Pang Zengyu's small interest subsidized loans for entrepreneurship refer to the Farmers' Entrepreneurship Support Fund established by Jiaonan City. In 2006, Jiaonan City set up a 10 million yuan farmer entrepreneurship support fund, and implemented a 90% interest subsidy for small loans for farmers to start a business; in 2007, the amount of interest discount was increased to 20 million yuan, and the scope of interest discount was extended to laid-off and unemployed people.It is with the help of subsidized loans for two consecutive years that Pang Zengyu's company has a new look today. Insufficient start-up capital is one of the main "bottlenecks" that restrict many people from starting a business.The state implements a micro-loan strategy, and even implements interest discounts for some industries, which has really opened up a green channel for entrepreneurs.If you meet the relevant conditions, you can enjoy these preferential measures and realize your own entrepreneurial dream.And you don't need to worry about not being able to provide guarantee collateral. The houses, cars, machinery and equipment, large durable consumer goods, securities and other items with complete two certificates (property certificates, land certificates) of relatives and friends of the citizens can be used as collateral after evaluation. Guaranteed collateral. In addition, on the basis of in-depth research and repeated demonstrations, the Central Committee of the Communist Youth League and the China Development Bank launched the "China Youth Entrepreneurship Micro-Loan Project" for youth entrepreneurship. Young people under the age of 45 will be able to obtain micro-loans for their first start-up. 45 Young entrepreneurs under the age of 2 will also be able to obtain SME loans for their second venture.The amount of small loans for young entrepreneurs is generally within 100,000 yuan per person, and the maximum is not more than 1 million yuan. more than 3 years. However, there may be differences in the relevant regulations of these green passages in different regions. For example, some regions require laid-off workers.You can choose a small business loan that suits you according to the policies in your area, which is much more convenient than ordinary bank loans.