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This is not calculated in accordance with compound interest, but the private loan is generally used for temporary working capital, by a shorter period, usually between one month to three months, less than half a year.

From a practical point of view, how the agreed interest rate, the manner in which the calculation, both lenders and borrowers need to negotiate.

Private high-interest financing for both lenders and borrowers who are “seeking wealth and risk in” the very means. For SMEs, banks and other formal channels to seek loans to turn, the four points below the interest rate is not unacceptable.

Another noteworthy phenomenon is that: there are insiders, Dongguan, private lending, many are doing, “lending.”

For example, a company borrowed 500 million, expires, companies still need money to do short-term liquidity. Although he has a bank credit, you can renew his $ 5 million, but the banks because the country’s monetary policy, have the money, the company must first pay back the money, and then queue up again.
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As a result, the companies would have to participate in private lending, shattering. Pay back the money in the bank at the same time, through usury and then get 500 million. Queue waiting for the banks to give him Xudai 5 million yuan hand, immediately after the return of usury to be 500 million.

Yesterday 11:38, Tongchuan Yaozhou according Jinzhen Tian Yu Coal Co. District a gas accident, 51 people on duty, the early withdrawal of 30 and 10 after the accident safety Masui, two of whom suffered minor injuries, the remaining 11 underground people aboard.

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