Legal Regulation And Perfection Of Inter-enterprise Credit

Since the reform and opening-up policy of China, along with our country gradually opening-up the development of the marketing on the aspect of economic policy, various types of enterprises develop rapidly and the market economy is increasingly prosperous. However, in the process of financing, the inter-enterprise credit is illegal in our country. Although this activity did not be forbidden clearly in laws or administrative rules and regulations, but the Lending General Provisions issued by People’s Bank of China in 1996 explicitly denied the legitimacy of the inter-enterprise credit. And in the early days the judicial trial court of China decided that loan contract between enterprises is invalid because it violates the financial order or damages the social public interests. It is because of the negative attitude towards inter-enterprise credit in our country, which leads to many enterprises face the reality of money demand and difficult financing environment, and finally turn to underground financing channels. Thus on the contrary it increases the instability of the market order.The author holds the opinion that, with the development and mature of Chinese market economy, the problems on the effectiveness of inter-enterprise credit in China should be shifted on the understanding. Facing the reality of the huge capital requirements by enterprises, “block” instead of “dredge” is not the best method. Therefore, the author hopes that we should study the relevant laws and regulations of inter-enterprise credit from developed countries or regions abroad, have more comprehensive understanding of our current regulations, and put forward appropriate suggestions for perfection. The author’s view is: the development of market economy in China has reached at the situation that we can choose the Limit Corporatist Model of inter-enterprise credit, namely allow enterprises to use their own idle funds in the process of operation for crediting. In addition, China should timely enact the Money-lenders Ordinance to standardize the behavior of inter-enterprise credit, at the same time through increasing loan market subjects to diversify the financing channels of enterprise. In short, we need build up the multi-level loan market from system level and standardize the market subjects’ activities to promote the safer and rapider development of Chinese economy.