Microfinance companies are limited liability companies or joint stock limited companies established by natural persons, corporate legal persons and other social organizations that do not absorb public deposits and operate microfinance business.
A company is an enterprise legal person, with independent legal person property, enjoying legal person property rights, and bearing civil liability for debts with all its property. The application procedure is simple and convenient, avoiding complicated evaluation and guarantee procedures.
Compared with banks, small loan companies are more convenient and faster, and are suitable for the capital needs of small and medium-sized enterprises and individual industrial and commercial households; Compared with private lending, microfinance is more standardized, and loan interest can be negotiated by both parties.
A small loan company is an enterprise legal person, which has independent legal person property, enjoys legal person property rights, and bears civil liability for its debts with all its property. Shareholders of small loan companies enjoy the right to return on assets, participate in major decisions and choose managers according to law, and are liable to the company to the extent of their subscribed capital contribution or subscribed shares.
Small loan companies shall abide by national laws and administrative regulations, implement national financial policies, implement financial standards and accounting systems of financial enterprises, and accept the supervision and management of governments at all levels and relevant departments according to law.