(1) Financing activities usually go through several stages including project application, feasibility analysis, board resolution, borrowing funds, accounting records, supervision of the use of loans, and repayment of loans.
(2) Financing activities are managed uniformly by the finance department of an organization. Each business department should submit a project application to the finance department based on the operational and management needs of the organization.
(3) After receiving the project application, the finance department should promptly organize relevant departments to conduct a feasibility study according to its authority, prepare a feasibility report, and submit it for board approval. Without the approval of the board, neither the finance department nor any other department may independently engage in external financing (bank loans).
(4) The board should timely evaluate the feasibility study report of the financing project. Resolutions formed by the board should be recorded in written documents, which should be numbered for control purposes to facilitate future reference.
(5) After the financing project has been approved by the board, the finance department should, in accordance with the board's resolution, sign loan contracts with banks, prepare loan plan documents, handle bank loan procedures, and carry out corresponding accounting treatments.