Cross the bridge to highlight capital and set up an account.

Many people can't tell what is a fund bridge, what is a show-off account, and what is the difference between a fund bridge and a show-off account.

The account is set up to show the financial strength. Since customers don't have that much savings, but partners want to show their financial strength, customers will borrow funds from our employers as their own funds. After the performance, we will leave immediately, and the customers will give us a discount.

Related Q&A: Related Q&A: What does it mean to "cross the bridge" financially? The so-called financial "bridge" in the question must be "bridge loan". Let's discuss what a "bridge loan" is.

I. bridge loan

For many people who are not familiar with financial expertise, their understanding of "bridge loan" may still stay in the hit drama in the name of people. Cai Chenggong of Dafeng Factory was jailed for a 50 million bridge loan, which triggered a series of corruption incidents.

So, what exactly is "bridge loan"?

The written explanation is:

Bridge loan, also known as "bridge loan", means that after financial institution A got the loan project, it was unable to operate due to temporary lack of funds, so it consulted financial institution B and asked it to help allocate funds. After the funds of financial institution A are in place, B quits. For B, this loan is the so-called bridge loan.

In practice, it usually means that the loan owed by Company A to Bank A is about to expire, but the loan from Company A to Bank B has not been approved yet, so at this time, Company A temporarily borrows a sum of money from Company B to repay the bank loan, and at the same time pays certain interest to Company B as the capital use cost. With the loan from Bank B, Company A will return the money to Company B with interest. The money is "bridge loan" and the interest is "bridge toll".

Under normal circumstances, Company B will require Company A to issue certain collateral, which can be equity or the company's physical assets, provided that its own interests are not infringed.

For example:

Han Mei borrowed 5 million from the bank and started a cosmetics company. When the repayment period is up, Han Mei is too short of money to turn around and needs to apply for a loan from another bank. It takes some time for the bank loan to be approved, so Han Mei said to Li Lei, "Friend, for the sake of our young friendship, lend me 5 million yuan to cross the bridge and pay it back in a week." Li Leinian readily agreed to classmate friendship and high interest, which solved Han Mei's urgent need. A week later, the new bank loan was approved, and Han Mei paid back her old friend with interest. This is the normal "bridge loan".

Therefore, bridge loan essentially plays the role of "solving urgent needs", which can prevent a series of serious consequences caused by the company's capital chain break in an emergency.

However, "bridge loan" itself implies high risks.

Second, the hidden dangers of "bridge loan"

"Crossing the bridge" usually means the existence of risks, and the word "loan" is a sensitive word for most people. The risk of combining the two is simply higher than that of "loan" by more than one grade. In practice, what are the hidden dangers in bridge loan?

1, the cost of capital use is high.

Bridge loan generally borrows money for a short period of time, usually no more than six months. In fact, the shorter the term, the higher the interest rate.

For example:

Cai Chenggong, director of Dafeng Factory, borrowed 50 million bridge loan from Shanshui Group in in the name of people in 2000, with a daily interest rate of 4‰. If it takes 6 days and the annualized rate is 1.46%, then the interest for 6 days is1.20,000.

In other words, the six-day use cost of the 50 million loan fund of Dafeng Factory is 654.38+0.2 million, not counting the total share capital mortgaged. Isn't this amazing? Once banks cut off loans, high interest rates are the last straw to crush enterprises.

2. The control of the company is in danger of losing.

As we also said above, Company B will ask Company A to make a certain pledge for its own benefit, which can be divided into physical pledge and equity pledge. If physical assets are pledged, it is likely to affect the company's subsequent production and sales, further expanding the company's losses; If the equity is used as pledge, once Company A fails to repay bridge loan of Company B in time, Company A will become a part of Company B, and all the previous control rights will fall into the hands of Company B. ..

So no matter what kind of pledge method, it means great risk to company A.

3. Burn your upper body

For company B, of course, it can get higher interest by lending to company A, but once company A defaults, company B is likely to be dragged to death by company A. ..

Therefore, for both sides in bridge loan, this is a high-risk capital lending behavior.

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