A Study On The Effectiveness Of Inter - Firm Borrowing

along with the establishment and development of market economy, prohibit lending between enterprises under planned economy system management concept has been unable to meet the requirement of economic development. Especially since the reform and opening, the rapid development of small and medium-sized enterprises, increasing market competition, make traditional Banks or other financial institutions of the single source of lending has been unable to meet the needs of the market. Therefore, moderate conditional release borrowing between enterprises is the demand of the new age, is also a demand to promote the development of our country economy further. However, while in the practice of borrowing between enterprises is very common, but in the event of dispute appealed to the court, because of the lag of the law and the borrowing between enterprises is no progress update and improvement according to actual condition, the court when in the judgment shall be borrowing between enterprises is invalid. It seriously affected the borrowing between enterprises, hindered the mutual accommodation of funds between enterprises, is not conducive to the development of the economy. Law, therefore, should also comply with the requirements of economic development, make new rules on borrowing between enterprises and improve, in order to promote inter-enterprise financing to provide legal support.