Equity investment funds cannot be loan funds. Generally speaking, creditor's rights investment funds refer to private equity funds that invest in the invested enterprises by means of non-standard creditor's rights and entrusted loans, and generally do not include the way that private equity funds directly issue loans to the invested enterprises.
Second, can you borrow money for equity investment?
Equity investment funds cannot be loan funds. Generally speaking, creditor's rights investment funds refer to private equity funds that invest in the invested enterprises by means of non-standard creditor's rights and entrusted loans, and generally do not include the way that private equity funds directly issue loans to the invested enterprises.
3. Can an equity investment enterprise invest by loan?
It seems that there is no legal prohibition, but banks generally do not lend to equity investment enterprises. There is a precedent for financing by issuing corporate bonds in China.
In principle, equity investment enterprises can only invest with their own funds.
4. Can the company's equity be used as a mortgage loan?
The State Administration for Industry and Commerce announced yesterday the Measures for the Registration of Pledge of Equity in Industrial and Commercial Administration Organs (hereinafter referred to as the Measures), which will be officially implemented on June 1 next month.
In layman's terms, equity pledge means that you can mortgage the equity that you have the right to dispose of and become collateral for financing activities such as loans. The Measures, which will be implemented next month, are applicable to unlisted companies such as limited liability companies and joint stock limited companies, except the shares of joint stock limited companies registered with securities registration and settlement institutions. The equity applying for pledge registration shall be the equity that can be transferred and pledged according to law. Shares that have been frozen by the people may not apply for registration of share pledge before the freezing is lifted. Where the equity of a foreign-invested company is pledged, it shall be approved by the original company's examination and approval authority before it can go through the pledge registration.
The industrial and commercial registration authority shall, according to the application, record the registered items of equity pledge in the equity pledge register completely and accurately, and make them public for public inspection according to law. The application for registration of establishment, alteration and cancellation of registration of equity pledge shall be jointly submitted by the pledgor and the pledgee. The application for cancellation of registration of equity pledge may be made unilaterally by the pledger or pledgee.
Lawyer Sun, a law firm in this city, said that under the background of the general shortage of funds for small and medium-sized enterprises, equity pledge financing has been widely welcomed by enterprises. After SAIC implements the registration method of equity pledge, the equity pledge not only has the guarantee of publicity and credibility, but also will become a new way to broaden the financing channels of enterprises, especially small and medium-sized enterprises. This policy is not only closely related to enterprises, but also helps individuals to obtain loans. Because after the implementation of the Measures, it means that individual shareholders who own the equity of unlisted companies can also take the equity as collateral to obtain loans. Of course, the key to the success of equity pledge lies in the evaluation of financial institutions. For those companies with good operating conditions and credit status, the pledge of equity will be relatively easy, and equity will fully flow and operate.