Note 11 – Debt

 

Short term loan

 

Short term loan due to bank is as follows:

 

Short term loans  Maturities   Weighted average interest rate   Collateral/Guarantee  December 31,
2020
   December 31,
2019
 
Loan from Bank of Jiangsu  March 25, 2021    4.5%  Personnel guarantee  $268,203                  - 
Loan from Bank of Jiangsu  January 12, 2021    5.22%  Guaranteed by Shibao Lin's personal property  206,900    - 
Total              $475,103      

  

Interest expense for the year ended December 31, 2020 and 2019 amounted to $18,235 and $23,251, respectively.

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Historical Timeline

Fiscal YearFiled
2020Mar 26, 2021Showing above
2019Apr 17, 2020
2018Apr 1, 2019

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.