Analysis the cost of small business loans
SME loans problem has always been an issue of great concern, however, in a recent study we found that, in addition to the sources of credit limit, the various fees charged by banks lending to SMEs is not a small expense. Fuzhou secured loan small series also found that most companies fear, there are old and new loan in the process of debt, many small businesses have to rely on borrowing money from a private microfinance institutions, and a loan in the future in order to continue to borrow from the Bank, this is a very high cost.
Enterprise Bank funding costs there are three main blocks: one is interest on bank loans. Second, government administrative departments in charge of expenses, mainly mortgage registration fees, notary fees, business queries. Third, fees charged by intermediaries, the main collateral assessment fees, security fees, audit fees. After two industry collectively referred to as "third party". In the survey, we found that third-party charges have more than 10 items, costs than larger mainly include the following items:
1, collateral evaluation fee, by assessment agencies according to the estimated value of the collateral level proportionately charged to small and micro businesses, higher assessment value, lower rates and fees are usually assessed amount of the mortgage 0.1%~0.25%.
2, against collateral registration fees collected by the registration authority for 0.1%~0.3% per cent of assessments. For the guarantee by the guarantee Corporation, companies need to pay to guarantee agencies guarantee costs, fees are usually assessed by 1%~3%.
corporate finance personnel also reflected low equity valuations, Bank lending is not enough, and seeking help from security company, guarantees are not a small expense. And renewal of the loan process, also suffering from the high of a microfinance company interest rates and mortgages long administrative examination and approval, the hidden costs of this surge is also very scary. Apply for continued land and mortgage loans to first, re mortgage, this process must run Bureau of land and resources, the Directorate more than more than 10 times, very frustrating, cumbersome set conditions demanding.