Traditional Credit Business
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If your company is short of capital when maintaining the producing and operating turnover because of using or storing various inventories and seasonal material stocks during the process of normal business operations, you may apply for a working capital loan to CCB.

The working capital loan is a RMB or foreign currency loan you use for normal business operations or to meet temporary need for capital.

The working capital loan with the characteristic of flexible loan term could satisfy the needs of borrowers such as temporary, short-term and medium-term working capitals.

On the basis of loan terms, there are three categories, namely temporary loans, short-term loans, and medium-term loans. Temporary loans is granted usually not more than three months, and are used for one-time inventory replenishment or to help make seasonal payments. Short-term loans have terms between three months to one year (excluding three months and including one year), and are primarily used to meet capital needs in normal business operations. Medium-term loans have terms between one year and three years (excluding one year and including three years), and are primarily used as disposable funds in normal business operations.

The working capital loan is available in both the RMB and foreign currencies. Generally it is under one year. It may be longer, but must not exceed three years.

The client process is as follows:

1. Application. When you files a loan application, you must provide your operations permit, institutional code certificate, legal representative identification certificate, loan certificate, financial statements and auditing reports verified by the Treasury Department or a CPA firm for the previous three years and the previous month (if the business is less than three years old, it must provide all available financial statements), tax registration certificate, corporate contract or charter, list of directors, executives, and financial managers, and a sample of their signatures. If the application is made by an authorized agent, the original copy of the legal representative’s authorization letter must be provided. If the client is a limited liability company, joint-stock company, joint venture or contractor company, documents that indicate the board of director’s or the contracting organization’s consent to the application must be provided; documents on the guarantor; other documents required by CCB.

2. Signing contracts. If our CCB approves the loan, we will sign a loan agreement and a guaranty agreement with the client.

3. Guaranty.  After signing the agreement, the borrower must provide a third-party guarantor, mortgages or pledges.  It may need to register the mortgage, purchase insurance for the mortgaged property, or deposit the pledged rights with our bank.

4. Loan disbursement. When you complete the above procedures, the loan contract comes into effect. The bank may disburse the loan to you. You may withdraw the loan amount for the uses specified in the contract.

5. Repayment. You must repay the loan according to the contract.

The clients can consult with the bank to confirm the interest rate of working capital loan according to the PBC loan interest regulations.