entrusted payment needs to be paid to the counterparty through the borrower's account.

the entrusted payment must transfer funds through the company's account. It should be an entrusted payment agreement signed with the other party, which stipulates what money is agreed to be paid and the company's account name and account number. The bank transfers itself from the company's account according to this entrusted agreement, such as entrusted payment of water and electricity.

entrusted payment is a payment method of loan funds, which means that the lender (a legally established banking financial institution) pays the loan funds to the borrower's transaction object according to the borrower's withdrawal application and payment entrustment, in order to reduce the risk of loan misappropriation.

at present, the application of entrusted payment is: the single amount of loan funds exceeds 5% of the total investment of the project or exceeds 5 million yuan.

Extended information:

Interim Measures for the Management of Working Capital Loans

Article 25 The lender shall reasonably agree on the payment method of loan funds and the standard of the amount entrusted by the lender according to the industry characteristics, business scale, management level, credit status and other factors of the borrower and the types of loan business.

Article 26 In principle, the method of entrusted payment by the lender shall be adopted for working capital loans under any of the following circumstances:

(1) A new credit business relationship has been established with the borrower and the borrower's credit status is average;

(2) the payment object is clear and the single payment amount is large;

(3) other circumstances identified by the lender.

article 27 if the lender is entrusted to pay, the lender shall, according to the agreed purpose of the loan, check whether the information such as the payment object and the payment amount listed in the payment application provided by the borrower is consistent with the corresponding commercial contract and other supporting materials. After examination and approval, the lender shall pay the loan funds to the borrower's transaction object through the borrower's account.

Baidu encyclopedia-entrusted payment