First, private lending institutions are not equivalent to private lending. The private lending institutions represented by pawn shops and small loan companies are approved by the government departments, registered and paid taxes according to law. They are subject to industry supervision, have strict business scope, and run loan businesses according to the state laws and regulations. Credit products The strict credit process, while private lending does not have the above characteristics.

Two, the loans provided by private lending institutions determine the interest rate standard according to the principle of marketization, not the category of usury. pawn shop Microfinance companies provide long-term and continuous financial services to small businesses and individual operators. Although they are relatively high relative to bank interest rates, such loans are simple and quick, and interest rates are set according to the standards stipulated by the law, which are more suitable for small and medium-sized enterprises.

Three, providing loan support by private lending institutions can boost the development of small and medium enterprises and individual businesses. Take Huifeng source pawn and Huifeng source small loan company as an example, in the past six years, they have provided funds to thousands of small businesses, micro enterprises and individual businesses to help them solve the difficulties, have leveraged the market and opened the door to wealth.

Four, private lending institutions play a significant role in supporting the development of local private economy. Pawnshop, small loan company's funds all come from local private enterprises, all used in local economic construction, can promote the development of local small and medium-sized enterprises. In particular, it can reasonably guide the industry with idle funds and broad prospects and good economic benefits, so as to promote the development of local private economy.

Five, small and medium enterprises, Individual industrial and commercial households In business, we should learn to choose a fulcrum and be good at using credit leverage to overcome the financial difficulties of enterprises. The choice of credit institutions first depends on legal compliance; two depends on the scale of strength; three depends on the standardization and continuity of services. To select a loan variety, one must consider its own business needs, such as time limit, amount, repayment method; two, we must consider the price of the fund, that is, whether the interest rate can be borne by itself or not; three, we must consider the arrangement of the cash flow, not to pay interest on the one hand and make the fund idle on the one hand; the four is to consider the time of the loan process, so as not to delay business opportunities.