Product Name

Working Capital Loan

Product Description

A working capital loan is granted to meet the short-term funding needs of customers in their production and business operations, ensuring the smooth continuation of business activities.

Product Features

As an efficient and practical financing tool, working capital loans are one of the most common products within the credit limit. They are characterized by short loan terms, simple procedures, strong liquidity, and relatively low financing costs.

Loan Types

By loan term: Short-term working capital loans with a term of up to one year, and medium-term working capital loans with a term of one to three years;

By loan method: Guaranteed loans and credit loans, with guaranteed loans further divided into guarantee, mortgage, and pledge forms;

By usage method: Short-term revolving loans with individual applications and loan approvals, and short-term revolving loans that can be borrowed, used, and repaid flexibly within the Bank’s specified time and limit.

Interest Rate

The interest rate is agreed upon between Bank of China (Canada) and the borrower, based on factors such as the borrower’s creditworthiness, loan amount, term, and the form of guarantee.

Loan Term

The maximum term for a working capital loan is three years.

Relevant Fees

All fees are agreed upon through the contract.

Application Requirements

1. The borrower shall undergo a credit rating by Bank of China (Canada) and meet the required level. Bank of China (Canada) will periodically adjust the admission level based on review needs, following relevant regulations.

2. The borrower shall have a sound business management structure, a qualified leadership team, and strict operational management systems. The borrower’s business, financial, and credit conditions shall be good, with the ability to repay the loan principal and interest on time.

3. A guarantee or collateral (pledge) from a bank-recognized guarantor is required.

4. The borrower shall open a basic or general account with Bank of China (Canada).

5. The borrower shall meet other relevant loan policy requirements set by Bank of China (Canada).

Required Documents

1. Loan application form;

2. Proof of the company’s legal representative or power of attorney, Board resolution, and the company’s Articles of Association;

3. The latest company registration documents;

4. Audited financial statements for the past three years and recent financial statements;

5. Other documents or proof required by Bank of China (Canada).

Processing Procedure

1. The applicant contacts the Corporate Banking Department of Bank of China (Canada) to submit a loan application along with the required materials.

2. Bank of China (Canada) reviews the applicant’s materials.

3. Upon approval, both parties sign the Working Capital Loan Agreement and any other related agreements (such as guarantee, mortgage, and pledge contracts).

4. The borrower opens a loan account at Bank of China (Canada) and withdraws the loan.