THE DIFFERENCE BETWEEN APPRAISAL & CORPORATE CREDIT PERSONAL CREDIT

Sure, loan appraisal between businesses and individuals is different, but the reality is different, few people can distinguish clearly.

Corporate credit is business finance loans for production and business activities, the purpose of corporate borrowing is usually to invest in the purchase of new machinery, other investments or to supplement capital. mobile. As a business, the loans are relatively large, depending on the size and the purpose of the capital use of the business, the loans financed from financial and credit institutions will be different. Therefore, the loan appraisal process will be more thorough, the process and paperwork are more necessary if the business needs a larger loan.

Personal credit is personal financial loans for personal and family consumption, such as buying cars, other vehicles, real estate and personal and household items. Of course, these loans will not be too large, so the appraisal process will be very fast and simple, even within a few hours of disbursement if the customer provides complete documents.

In reality, there are still cases where business credit is also personal credit. This is the case when the business owner borrows money to finance the production and business of his business, usually private enterprises or households, at this time, the enterprises assets are also personal property (Under Civil Law 2015, chapter VI stipulates that Households and other organizations have no legal status in civil relations). Therefore, when assessing this loan, the credit officer of the credit institution will carefully consider personal credit. Unlike individual credit above, customers who want to borrow are required to have collateral for their loans because the loan amount is relatively large and has many risks for financial and credit institutions.

For their business activities, banks as well as finance companies, finance leasing companies will divide customers into two main areas: corporate credit and personal credit. For each type, each credit institution gives a different list of documents, and of course, the credit appraisal for the business will be more, it can be named a number of categories such as: Legal documents of the business. Enterprise (Business Registration Certificate, Tax Code, Company Charter, Seal Registration Certificate, ...), Financial records (Financial statements for the last 2 years, Value added tax return monthly for the last 2 years, Bank account sub-book for the last 6 months, ...), Other documents (Financial lease or business loan, List of fixed assets - including book value book and depreciation, Quotes of assets expected to finance leasing - for finance leasing companies, Business projects - for bank loans, ...), ... But there are financial loans for individuals. Just asking for ID card, payroll statement is enough! (Excluding credit for private businesses or households).

Based on the above analysis, when there is a need for personal or business loans, we should prepare appropriate documents in advance because business credit appraisal will be very different from personal credit appraisal!

Indochina International Investment & Appraisal Joint Stock Company (INA)

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• Hotline: 0934 252 707 / Email: info@inavn.vn