Corporate Credit

Fixed asset loans

  The Fixed Assets Loan refers to a mid and long-term RMB or foreign currency loan issued by the Bank to borrowers for acquisition, modification, and installation of matching facilities in fixed assets projects.

  The loan can be classified into infrastructure loan and technology renovation loan. Infrastructure construction loan is a mid and long-term loan used in infrastructure construction projects approved by the empowered authority, technology renovation loan is a mid and long-term loan used in technical renovation projects approved by relevant authorities. The fixed assets loan features long loan life and large loan amount to address the borrower's investment needs.

  The currency can be in home and foreign currencies. The loan tenor is negotiated by and between the borrower and lender according to the borrower's production cycle, project construction needs, repayment capacity. The maximum tenor is 8 years.

  The client process is as follows:

  1. Application. When you files a loan application, you must provide your operations permit, institutional code certificate, legal representative identification certificate, loan certificate, financial statements and auditing reports verified by the Treasury Department or a CPA firm for the previous three years and the previous month (if the business is less than three years old, it must provide all available financial statements), tax registration certificate, corporate contract or charter, list of directors, executives, and financial managers, and a sample of their signatures. If the application is made by an authorized agent, the original copy of the legal representative’s authorization letter must be provided. If the client is a limited liability company, joint-stock company, joint venture or contractor company, documents that indicate the board of director’s or the contracting organization’s consent to the application must be provided; documents on the guarantor; other documents required by Bank of Kunlun. Before the loan application, project feasibility report, project budget prediction, project preparation status report, treasury resources and other materials required by the Bank are needed.

  2. Signing contracts. If the Bank approves the loan, we will sign a loan agreement and a guaranty agreement with the client.

  3. Guaranty. After signing the agreement, the borrower must provide a third-party guarantor, mortgages or pledges.  It may need to register the mortgage, purchase insurance for the mortgaged property, or deposit the pledged rights with our bank.

  4. Loan disbursement. When you complete the above procedures, the loan contract comes into effect. The bank may disburse the loan to you. You may withdraw the loan amount for the uses specified in the contract.

  5. Repayment. You must repay the loan according to the contract.

  The clients can consult with the bank to confirm the interest rate of working capital loan according to the POBC loan interest regulations.

  6) Indirect Syndicated Loans

  Indirect Syndicate Loan means that the lead bank makes loan directly to the borrower and then resells the loan participation right (i.e. the loan share) to other banks. The lead bank is in charge of entire loan management, fund release, and collection.

  Main features and advantages of indirect syndicated loans in bank of Kunlun are that bank of Kunlun can help you collect large sum of funds in short period, help you get long term stable funds in one time, reduce your financing risk, help reduce credit concentration in bank of Kunlun, support enterprise’s continuous growth.