Analysis of financing cost of pawn
small business loans were once plagued many small business owners because of their status as well as limiting factors, small and micro enterprises to obtain loans from the Bank to help probably will not go well, instead through some private loans, other types of microfinance institutions obtain funding will be much easier. Also, there are many businesses chose to store the source here in Fuzhou secured loan analysis today of the small series, is the cost of pawn loans.
commercial bank loans, micro-credit loans, guaranteed loans institutional money and pawn shops are funded small business financing channels for small enterprises with their own various factors, however, Bank loan interest rates but because of too high a threshold and a number of small businesses stopped her at the door. These bank loans difficult to chose other types of business loan companies or agencies, among them, pawn made the most expensive form of funds, by calculating the annual interest rate is close to 50%, compared with bank loans as much as six times times.
a case study of a small business, business owners because of cash-flow problem of 1 million of the loan application to the Bank, need to pay annual interest of 8% and banks offering mortgage, complete information qualification after a bank audit, about need for months of time can get loans. Although launched banks for small business loans are not the same, but in general interest on bank loans compared to other agencies is minimal.
However, there are a lot of small businesses because of their problems, manage profit problems through a loan audit, then they select a pawn to achieve financial assistance, usually pawn money faster, is basically in line with provisions meet the requirements pawn loan on the same day. But their loan interest is highest in month interest only up to 4% and because of the loan, the less time the higher borrowing costs. While collateral requirements are very high, although what types of items can be pawned, but can really help get the amount of money, only some of the collateral of real estate classes.
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