Legal subjectivity: Methods of debt financing: 1. Bank credit Bank credit is the main form of debt financing, but for small and medium-sized private enterprises, which account for the vast majority of private enterprises, obtaining bank loans is something that many enterprises dare not imagine.
2. Project financing: There are two methods of project financing: non-recourse project financing and limited recourse project financing.
Debt financing is often confused with debt financing.
Debt financing is a company's financing through the sale of claims, such as the sale of accounts receivable and other claims.
Due to historical reasons, debt financing in China does not distinguish between borrowing and lending, nor between creditor's rights and debt. As a result, many people, including school scholars, always refer to borrowing as loans and debts as creditor's rights.
Therefore, the debt financing here, except for what was mentioned above, is actually debt financing.
The result of debt financing is an increase in corporate liabilities. According to different channels, it is mainly divided into bank credit, private credit, bond financing, trust financing, project financing, commercial credit and leasing.
Debt financing project financing Project financing is a financial activity for projects that require large-scale funds. In principle, the borrower will record the proceeds from the funds owned by the project itself as the source of repayment funds, and treat its project assets as mortgage conditions.
The general credit ability of the project entity is usually not considered as an important factor.
There are two methods of project financing: non-recourse project financing and limited recourse project financing. Non-recourse project financing is also called pure project financing. In this financing method, the principal and interest of the loan are repaid.
It relies entirely on the operating efficiency of the project itself. At the same time, in order to protect its own interests, the lending bank must also obtain property rights security from the assets owned by the project.
If the project fails to be completed or fails to operate due to various reasons, and its assets or benefits are insufficient to repay the entire loan, the bank has no right to pursue recourse against the sponsor of the project.
In addition to the loan project and income as the source of repayment and the guarantee of property rights, the lending bank also requires a third party other than the project entity to provide guarantee. The lending bank has the right to pursue claims from the third-party guarantor, but the guarantor’s liability shall not exceed
The amount of guarantee they each provide is limited, so it is called limited recourse project financing.
The law is objective: Article 443 of the "People's Republic of China and Civil Code" If fund shares or equity are pledged, the right to pledge is established when the pledge is registered.
After the fund shares and equity are pledged, they may not be transferred, except with the agreement between the pledger and the pledgee.
The price received by the pledger from the transfer of fund shares or equity shall be paid off the debt in advance or deposited with the pledgee.
Article 137 of the Company Law of the People's Republic of China: Shares held by shareholders may be transferred in accordance with the law.
Article 1 of the "Regulations of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases" refers to the act of financing between natural persons, legal entities and unincorporated organizations.
This provision does not apply to disputes arising from the granting of loans and other related financial services to financial institutions and their branches established with the approval of the financial regulatory authorities to engage in loan business.