Black River Small Micro-enterprise Loan What Materials are Required
Black River is a city in Heilongjiang province in China, which is famous for its booming economy and the large number of small and micro-enterprises. In order to support the development of these enterprises, banks like the Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), and China Construction Bank (CCB) have launched small micro-enterprise loan products. The procedure for availing these loans is hassle-free, but you must provide all the necessary documents to the bank. Here’s what materials are required for acquiring small micro-enterprise loans in Black River.
Business License
The first and foremost document required for the loan application is the business license. The license serves as proof of the enterprise’s legal existence and authorizes the enterprise to engage in business activities. Its original copy and a photocopy must be submitted to the bank. Before applying for a loan, you should ensure that the business license is valid and up-to-date because any discrepancy in this document can affect the loan application process.
Financial Report
The financial record of the enterprise is an essential document required for the application. It should show the annual revenue and expenditure, taxes paid, profit and loss statement, cash flow statements, and financial statements for the enterprise’s previous three years. The document should be audited by a certified accountant and should be signed and sealed by the enterprise’s legal representative. The bank analyzes the financial reports to evaluate the enterprise’s creditworthiness and repayment ability.
Certificate of Personal Identity
Along with the business documents, the enterprise’s legal representative should provide his/her personal identity certificate, such as national ID or passport. The identity document serves as proof of the identity of an individual in a legal transaction. It is necessary to ensure that the individual has the authority to represent the enterprise, sign legal documents on behalf of the enterprise, and execute the loan contract with the bank.
Collateral
The banks usually require collateral for loan security. The collateral can be in the form of property, equipment, or inventory. It is essential to determine the collateral’s value beforehand to avoid unnecessary disputes in the future. It is also advisable to submit a clear and concise description of the collateral documents to show the ownership and value of the assets.
Additional Documents
Along with the above-mentioned documents, the bank may require you to submit additional documents, including but not limited to:
- Business Registration Certificate
- Corporate Tax Return
- Borrower's Credit Report
- Bank Statements
- Insurance Policy Documents
The loan amount, loan tenor, and interest rate offered will depend on the bank’s assessment of the enterprise’s creditworthiness, collateral value, and repayment ability. A well-prepared loan proposal that includes all the necessary documents can improve the enterprise’s chances of obtaining loans with relatively low-interest rates and a long repayment period. In conclusion, preparing the necessary documents in advance is essential when applying for small micro-enterprise loans in Black River.
