Analysis And Perfection On The Legality Of Inter-enterprises Loan

The market-oriented economy has widened the financial channels ofcompanies. As one method of informal finances, the inter-enterprises loancan relief the toughness of capital turnover for the companies especiallyfor the medium-sized and small companies and lack of bank loan. Theinter-enterprises loan is a beneficial supplement for the national normalfinance system due to its finance support for the non-governmenteconomy. But the inter-enterprises loan hasn’t been completely permittedby the government, and the effectiveness of the credit contract is lookedupon as being invalid. However, this phenomenon has existed for a longtime and has evolved into an impressive scale. Companies have gainedeffective assistances from the credit within companies. Therefore, thegovernment should formulate laws and regulations to standardize andregulate the inter-companies loan.This thesis concludes three parts:The first part is an overview of inter-enterprises loan, which includingthe concept and the characteristics of the inter-enterprises loan and thetypes of inter-enterprises loan. The second part is to introduce the current situation of legislation andanalysis the legality of the inter-enterprises loan. Firstly, the authorenumerates the current laws, provisions and judicial interpretation aboutthe inter-enterprises loan. Second, the author analyzes the legitimacy ofthe inter-enterprises loan on the basis of freedom contract principle,subject qualification, the validity of contract and basic theories of law.Third, the author sort out the law articles which default the legitimacy ofthe inter-enterprises loan. Fourth, the author introduces the legislativesituation in the other countries such as German, France and Japan, whichtries to lead a reference for China’s legal situation.The third part is to make several suggestions on the perfection ofinter-enterprises loan. Firstly, it is important to amend and modify the lawarticles to solve the legal barriers of the inter-enterprises loan.Subsequently, we should try best to build the enterprises credit systemthrough the efforts among enterprises, trade association and thegovernment. Third, the author thinks that it is helpful to refer thenon-government loan. Last, we should strengthen the internalmanagement to avoid the risks of capital use.It is real that the inter-enterprises loan has a great scale. However, itwill be harmful to the social stability and the economic development ifwe blindly forbidden the inter-enterprises loan. We should recognize thelegislation of the inter-enterprises loan and improve it through strengthening guidance and establishing the supervision systems.