Direct financing refers to a financing method without the involvement of financial intermediaries.

In this financing method, within a certain period of time, the fund-surplus unit provides monetary funds through direct agreement with the fund-demanding unit or by purchasing securities issued by the fund-demanding unit in the financial market. For use by demand units.

Commercial credit, the issuance of stocks and bonds by companies, and direct lending between companies and individuals are all direct financing.

Financial derivatives such as forwards, futures, options, swaps, etc. are generally not used as financing methods. These are considered investment products. Just like buying and selling stocks in the secondary market. Different from the previous issue of stocks by companies with direct financing, the previous one refers to the issuance in the primary market.