What is the debt of Fahua for?

Fahua Debt is a loan company whose main business is loans.

loan

(1) loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. Banks put concentrated money and monetary funds out through loans, which can meet the needs of social expansion and reproduction and promote economic development.

(2) At the same time, banks can also obtain loan interest income and increase their own accumulation. Efficiency is the basis of sustainable operation of banks. For example, if a long-term loan is issued, the interest rate will be higher than that of a short-term loan, and the benefit will be good. However, if the loan term is long, the risk will increase, the security will decrease and the liquidity will weaken. Therefore, the "three natures" should be harmonious, so that there can be no problem with the loan.

(3) The borrower and its responsible person should also be specially examined. In order to reduce the moral hazard of the lender, the borrower and its responsible person should also be specially examined. When issuing loans, financial institutions should not only examine the qualifications, conditions and operating conditions of borrowers, but also strengthen the examination and control of the personal qualities of investors, legal representatives of enterprises and key management personnel.