Business credit is a phrase that is no longer strange to those who need to borrow capital. However, many people still have questions about this topic. So what are the characteristics of business credit? What is the credit granting process? The article now belongs to the category News following of SeABank.
What is business credit?
Business credit is an agreement between the Bank and the Customer for the corporate customer to use a sum of money or a commitment to allow the use of a sum of money on a repayable basis through lending, discounting, financial leasing, factoring, bank guarantees, letters of credit and other credit granting operations.
Popular forms of business credit.
Pursuant to Article 107 of the Law on Credit Institutions 2024, commercial banks provide credit through the following forms:
- Loan.
- Discount/rediscount.
- Bank guarantee.
- Credit card issuance.
- Payment factoring domestic; international factoring for banks licensed to make international payments.
- Letter of credit.
- Other forms of credit as prescribed by the Governor of the State Bank.
What does a business credit profile include?
MEach bank will have different requirements for business credit application documents depending on customer characteristics and credit purposes, but in general, there will be some basic documents as follows:
1. Legal documents:
- Certificate of business registration, seal registration, tax registration.
- Corporate charter.
- Decision on appointment of Legal Representative and Chief Accountant/Person in Charge of Accounting.
- List of members related to the business.
- Legal documents of legal representative, owner, chief accountant…
- Decision/Minutes of meeting of the board of directors/board of members on the request for credit and collateral for the credit at the bank.
Basic and easy business credit application
2. Credit application documents (depending on different credit purposes) purpose:
- Economic contracts, sales invoices, purchase orders...
- Equity papers, business production plan...
3. Financial profile:
- Financial report
- VAT declaration form.
- Input and output contracts
- Details of items: Receivables, payables, inventories, fixed assets...
- Sub-ledger/account statement of the enterprise at credit institutions.
4. Collateral documents:
- Legal documents of the property owner
- Documents proving ownership and usage rights for each type of collateral
5. Other Profile: Prepare according to each bank's requirements.
Business credit application process.
A business credit application process includes the following steps:
Step 1: Create a loan application: Businesses will have to prepare a credit application according to the list of documents required by the bank.
Step 2: Business credit appraisal: At this step, the bank will receive the application and conduct an assessment of the customer's business activities and financial situation, collateral and credit needs, and the effectiveness and feasibility of the credit plan.
Step 3: Credit Decision: After the assessment is completed, the bank will make a decision. If the application is approved, the relevant contracts will be prepared, then the credit contract, guarantee contract will be signed and the secured transaction will be registered.
Step 4: Disbursement and post-loan control: After completing the procedures for assets, the bank will enter the assets into the warehouse and disburse and grant credit to the Customer. During the process of granting credit to the enterprise, the bank will conduct post-credit checks (periodically or suddenly) to ensure compliance with the terms of the contract.
Step 5: Credit liquidation: Is the final step of the credit process.
The business credit granting process consists of 05 steps
Instructions for quickly applying for a business credit profile at SeABank
Depending on the purpose of the credit, banks will have specific and detailed documents. Therefore, businesses need to determine the business model and credit purpose that is suitable for their ability to pay their debt obligations.
Currently, SeABank has many credit programs with attractive interest rates, quick and easy application preparation and quick and easy disbursement process. After determining the credit needs, you just need to contact SeABank staff and you will be served enthusiastically and thoughtfully. All information and preferential loan programs for businesses, you can refer to the website SeABank Or register for online consultation here to get answers and support.
