The difference between direct financing and indirect financing mainly lies in whether the demander of funds and the supplier of funds directly form a creditor-debt relationship during the financing process. \x0d\ The detailed differences between direct financing and indirect financing are as follows: \x0d\ 1. Different concepts: \x0d\ 1. Direct financing refers to the financial behavior in which fund suppliers and fund demanders directly form a creditor-debt relationship through certain financial instruments. . \x0d\　2. Indirect financing refers to the act of indirect financing between capital suppliers and capital demanders through financial intermediaries. \x0d\ 2. Different financing tools: \x0d\ 1. Direct financing tools: \x0d\ a. Commercial paper and direct loan certificate; \x0d\ b. Stocks and bonds. \x0d\ 2. Indirect financing tools: \x0d\ Various financing tools issued by financial institutions, such as certificates of deposit, loan contracts, etc. \x0d\ 3. Different advantages: \x0d\ 1. Advantages of direct financing: \x0d\ a. The supply and demand sides of funds are closely connected, which is conducive to the rational allocation of funds and improved resource use efficiency. \x0d\　b. Financing costs are low and investment returns are large. \x0d\ 2. Advantages of indirect financing: \x0d\ a. Diversified financing tools can flexibly and conveniently meet the financing needs of both supply and demand parties. \x0d\b. Financial institutions can reduce risks through diversified strategies and have higher security. \x0d\　c. It is conducive to improving the scale efficiency of financial activities and improving the efficiency of the use of funds in the whole society. \x0d\ 4. Different limitations: \x0d\ 1. Limitations of direct financing: \x0d\ a. Both parties to direct financing are subject to more restrictions in terms of fund quantity, term, interest rate, etc. \x0d\ b. The liquidity and liquidity of direct financing instruments are limited by the development of the financial market and are generally lower than indirect financing instruments. \x0d\　c. The capital supplier bears greater risks and responsibilities. \x0d\ 2. Limitations of indirect financing: \x0d\ a. The direct connection between the supply and demand of funds is severed, which is not conducive to the supply side's supervision and restriction of the use of funds. \x0d\b. For the demand side, it increases financing costs; for the supply side, it reduces returns.