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What is a financing bill and what are the risks of financing bills? Today, the editor has made a detailed arrangement and summary.

Financing bills refer to bills obtained by bill holders through non-trade means, and the bills are used to apply for discounts from banks to obtain funds to achieve financing purposes. The purpose of financing bills may be the issuer or the holder, but they are generally affiliated companies. Usually, the funds flow back to the original issuer after discount. The funds after the financing bill discount are often used for investment or debt repayment. The strict definition of financing bills should be that the bills lack a trade background, making the bills lack self-liquidation. Financing bills are generated at the issue stage, not the transfer stage; or generated at the acceptance stage, not the discount stage.

Whether a bill is for trade or financing depends entirely on the purpose of the transaction when it is issued. Bills under trade items can be self-liquidated with the proceeds from the goods when they mature; financing bills used for investment or debt repayment will bring uncertainty to the payment due to the lack of self-liquidation when they mature. The typical form of a financing bill is a bill generated by real trade. Even if it becomes a financing transaction without trade (such as debt repayment) in a later transfer link, and the bank discounts it for the holder, it will not pose a risk to the accepting bank or expand money supply.