Indirect financing is an act that connects investors and fundraisers through the intermediary function, so that the financing needs of fundraisers can be met. At this time, there is no direct loan relationship between investors and fundraisers, but through an intermediary, such as a bank, to complete the middle connection.

First, how to understand indirect financing?

1. According to the financing methods, we can roughly divide it into direct financing and indirect financing. Indirect financing is different from direct financing, and the difference between them lies in whether there is an intermediary between investors and fundraisers.

2. Indirect financing exists, on the one hand, because there is information asymmetry between investors and fundraisers in the market, and their mutual demand information cannot be fully exchanged; On the other hand, direct financing can't happen, because the two sides don't understand, and the trust of direct trading is not high and the risk is too high. Finally, it is also possible that the demand of the two does not match, and there may be demanders of large funds, but investors in the market are holders of small funds, resulting in low demand matching.

To sum up, due to the objective reasons of the market, there is no direct relationship between investors and fundraisers, and they need to meet their needs through a qualified intermediary, which is indirect financing.

Second, examples of indirect financing:

1. In reality, there are many examples of indirect financing. The most common and typical example of indirect financing is through bank financing. As an intermediary, banks pool depositors' funds and then lend them to other individuals and companies that need funds. The existence of banks has caused the problems of insufficient information exchange and trust between them, and their needs have been met respectively.

2. In addition, there are trust funds, some corporate bonds and corporate bonds. , also belong to indirect financing, but these are relatively small in scale and not so widely used, so they are not as widely known as bank financing.