Core Insights - The article emphasizes the importance of matching financing tools to specific business needs, highlighting that startups may benefit from credit loans or government-subsidized projects, while businesses with fixed assets should consider mortgage loans to reduce interest pressure [3][4]. Financing Types - **Credit Loans**: Suitable for short-term turnover without collateral, with interest rates ranging from 4.5% to 8%. Requires stable business cash flow and a credit score of at least 650 [4]. - **Mortgage Loans**: Ideal for large funding needs, with interest rates between 3.8% and 6%. Requires property or equipment valuation to be at least 120% of the loan amount [4]. - **Supply Chain Finance**: Used for managing accounts receivable and payable, with interest rates from 5% to 7.5%. Requires core enterprise guarantees and verification of contract authenticity [4]. Risk Management - Companies are advised to conduct thorough due diligence on financial institutions, ensuring they possess legitimate financial licenses to avoid scams [6][10]. - Transparency in interest rates is crucial, as some companies may advertise low monthly rates while having high annualized rates. Calculating total repayment amounts and fees is recommended [6][10]. - It is important to identify and negotiate any prepayment penalties or hidden fees in contracts to prevent unexpected costs [7][10]. Debt Restructuring Strategies - When facing increasing debt, companies should consider debt restructuring options, such as consolidating multiple loans into a single loan with more favorable terms [8][11]. - Utilizing idle assets for mortgage loans can help secure lower interest rates, especially with the current emphasis on green financing policies that offer additional subsidies for environmentally friendly businesses [8][11]. - Maintaining a cash flow reserve and prioritizing urgent debts during restructuring is essential to avoid disruptions [8][10]. Conclusion - The article provides a comprehensive guide for navigating the financial loan market in Wuhan, emphasizing the need for careful selection of financial partners and the importance of transparent communication to mitigate risks [10][11].