The Balance of Risk and Benefit of Loan Payment

Integrating information from commercial banks and implementing entrusted payments by lenders will highlight the game between risks and returns:

First, while reducing the risk of loan misappropriation, it will have an impact on the income of borrowers. Some commercial bankers said that for project loans, companies can withdraw them all at once, and whether they are used or not, and how to use them is up to the company's independent decision. In this case, during the transition period of project construction, the borrower can do some businesses that increase revenue, such as transferring to banks and purchasing wealth management products. However, after adopting entrusted payment, it is impossible for the borrower to make a one-time withdrawal, and the space for short-term operations will be compressed.

Second, the balance between the efficiency of project approval and the progress of the company's use of funds. A policy banker admitted that sometimes it takes half a year for the approval of a project, and the company already needs to use funds. As mentioned earlier, many projects have begun to apply for loans before going through the full approval process.

Third, how to deal with disputes between the borrower and the transaction partner. The loan bank is entrusted to pay funds to the borrower’s transaction partner, but if the project quality does not meet the requirements, the borrower and the project construction unit have disputes, how to protect their interests? This has also become one of the concerns of banks.