The Research On Legalization Of Lending Between Non-financial Enterprises

With the rapid renovation and a fiercer competitive environment, modernenterprises are facing more challenges to survive and evolve in the domestic andglobal market in which resources of capital is a priority. Especially for middle orsmall sized enterprises, financing has become a big problem on their way to develop.In fact, they are in desperate need of more effective approaches to finance. Along withthe cumulative excess of private capitals in our nation, it is now much difficult tomeet the financing demands of enterprises just by method of indirect financing fromfinancial institutions. Besides, we are not giving full play to the benefit of surpluscapitals of enterprises. As a result, whether or not we should legitimizeinter-enterprises lending has been a hot topic discussed by all sectors of the society.At present, our state has adopted an attitude against the inter-enterprises lending.However, we cannot find any specific articles in the current legislation which forbidsthe inter-enterprises lending. That means we lack strong evidence to deny that beyonddoubt. At meantime, all levels of courts are generally realizing the shortcomings andlimits of the interdiction of inter-enterprises lending and gradually choose to give tacitconsent to the validity of inter-enterprises lending actions. It is inevitable to changeour mind and take a tolerant attitude toward that in order to adapt to the developmentof the market. Actually, a majority of developed countries and regions have give effects to inter-enterprises lending actions which means it is a tendency to approvethat. Then in China, are there any theoretical bases to support inter-enterprises lending?What are the risks to legitimize this action? How can we construct a regime forinter-enterprises lending that suits our national condition on the base of advancedexperience of foreign countries? Those are all the key points studied and discussed bythe author.Besides the introduction and conclusion part, this thesis comprises of four majorparts.The first part is a general introduction of the legal definitions of inter-enterpriseslending. It will also analyze some typical forms of lending regarding current practicesin order to draw a clear picture of how we define the effect of inter-enterprises lendingactions in China. The second part aims to analyze the rationality of the legitimation ofinter-enterprises lending. After balancing the positive benefits and negative effect ofthis legitimation, the thesis comes to the conclusion that it is of ration to approveinter-enterprises lending. The third part does a feasibility analysis to the legitimationof inter-enterprises lending. Taking into consideration the current legislation, thejudicial attitude, the draft of regulation for lenders and the bloom of small-amountloan companies, it can be argued that preparations are made to the legitimation ofinter-enterprises lending in China. Then by analyzing and learning from the USNDTL system, the regulation for lenders in Hong Kong and the model of P2P lending,we have reasons to looking forward to the legitimation of inter-enterprises lending.And the fourth part mainly attempts to discuss the construction of law and theperfection of the regime. It plans a preliminary structure for the law of enterpriseslending from three perspectives: the supervisors, the principles of supervision and thesubject of supervision. Besides, along with the revise of the Chinese Company Law,the legal effect of inter-enterprises lending can be official affirmed and other relevantregimes can be perfected.