The advantages and disadvantages of new venture financing methods are as follows: 1. By applying for a loan from a bank, the advantage is that the source of funds is stable, and the disadvantage is that there are many procedures; 2. The advantage of financing through equity or issuing bonds is that the payment method is flexible, but the disadvantage is that it will disperse the control right of the enterprise.
Legal objectivity:
Article 134 of the Company Law of People's Republic of China (PRC), when a company is approved by the securities regulatory authority of the State Council to issue new shares publicly, it must publish the prospectus and financial accounting report of the new shares and make a subscription. The provisions of Articles 87 and 88 of this Law shall apply to the company's public offering of new shares. Article 153 of the Company Law of People's Republic of China (PRC) * * * The term "corporate bonds" as mentioned in this Law refers to the securities issued by the company in accordance with legal procedures and agreed to repay the principal and interest within a certain period of time. The issuance of corporate bonds by a company shall conform to the issuance conditions stipulated in the Securities Law of People's Republic of China (PRC). Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases Article 1 The term "private lending" as mentioned in these Provisions refers to the financing behavior between natural persons, legal persons and unincorporated organizations. These provisions shall not apply to financial institutions and their branches engaged in loan business established with the approval of the financial supervision department, as well as disputes arising from loans and other related financial businesses.