Ways to solve disputes in non-governmental lending

(1) Lenders and borrowers can solve them through negotiation

Most of them have clear lending facts (complete evidence) and have no objection to the relationship between creditor's rights and debts, and most of the disputes focus on solvency, repayment period and repayment method, so it is possible to solve them through negotiation. If the other party doesn't recognize or distort the facts at all, there is no need to negotiate.

(2) Mediation

Mediation can be divided into people's mediation, arbitration mediation and litigation mediation according to different subjects and legal effects. The premise of mediation is that both parties are willing to conduct mediation. If there is no agreement, mediation cannot be forced. If the other party does not agree, or there is no arbitration agreement in advance, mediation will not work.

(3) Enforcing notarization

Enforcing notarization is the abbreviation of "notarization that gives the creditor's rights documents compulsory enforcement effect", which mainly refers to applying to the notary office together after signing the loan contract and before the expiration of the contract performance period. The loan contract needs to specify that the borrower and the guarantor are willing to accept the commitment of compulsory execution when the borrower fails to perform their obligations or fails to fully perform their obligations. (For private lending between natural persons, it is rare in practice)

(4) Applying for a payment order

A payment order is a legal document issued by the people's court to the debtor to pay money or securities within a time limit according to the supervision procedure stipulated in the Civil Procedure Law. It is a legal document made by the people's court according to the creditor's application to urge the debtor to pay certain obligations. This is the best way to deal with civil and economic disputes with a clear relationship between creditor's rights and debts, but it can only be realized within 15 days from the date when the debtor receives the payment order and does not raise a written objection to the court. The debtor has no objection to the relationship between creditor's rights and debts, but it does not affect the validity of the payment order if it raises different opinions on the solvency, repayment period and repayment method. If the court decides to terminate the supervision procedure, the payment order will automatically become invalid and the creditor may bring a lawsuit.

(5) Arbitration

Arbitration shall be agreed by both parties in advance, and the arbitration tribunal shall make the arbitration according to the arbitration agreement.

(6) Litigation

Without the consent of the other party, it can be filed unilaterally in a court with jurisdiction.

(7) Application for payment order

A payment order is a legal document issued by the people's court to the debtor to pay money or securities within a time limit according to the supervision procedure stipulated in the Civil Procedure Law and the creditor's application. It is a legal document made by the people's court according to the creditor's application to urge the debtor to pay certain obligations. This is the best way to deal with civil and economic disputes with a clear relationship between creditor's rights and debts, but it can only be realized within 15 days from the date when the debtor receives the payment order and does not raise a written objection to the court. The debtor has no objection to the relationship between creditor's rights and debts, but it does not affect the validity of the payment order if it raises different opinions on the solvency, repayment period and repayment method. If the court decides to terminate the supervision procedure, the payment order will automatically become invalid and the creditor may bring a lawsuit.