1. What's the difference between financing and loans? Lending institutions generally refer to institutions with large scale and great market influence, such as banks, insurance and other financial industries, which lend funds to lenders at established interest rates in the form of loans, requiring them to repay the principal and pay corresponding interest within a certain period of time. This form and scale are called loans. In essence, loans include not only borrowing money, but also some economic behaviors such as discounting in finance. Therefore, loan is a general term for all kinds of capital transfer methods. The existence of loans not only allows funds to realize their use value to a greater extent, but also allows banks and other financial institutions to obtain interest and other benefits in this way. As far as financing loan itself is concerned, it has certain characteristics, because loan itself is one of them, which refers to loans in a narrow sense. In order to achieve the purpose of financing, enterprises can also obtain funds through project financing and other means. In addition, generally speaking, for loans, large enterprises will call it financing, but generally small and medium-sized enterprises will call it corporate loans, and different enterprises will have different names. In the process of market development, corporate financing and corporate loans represent certain economic behaviors. Moreover, this kind of financial behavior, which is conducive to promoting enterprise progress and social development, will continuously bring greater resource utilization to society and enterprises, and make society and enterprises develop more rapidly. Second, what are the characteristics of financing? (1) Raise funds as much as possible; (2) Remember that angels, VC and PE all like to invest in "dreams". This beautiful promise will either solve the existing problems or create a better future; (3) Show potential evidence of the company's success to potential investors, such as the company's products, organizational leadership and return on investment; (4) Try to raise funds through multiple channels, establish good relations with partners, and adjust plans at any time; (5) Remember, you are not only raising funds, but also looking for "partners". Therefore, before signing the agreement, it is best to outline the cooperation prospect with the new partner and consider whether it can maximize your personal and company interests. To sum up, in fact, the loan itself is a kind of financing, and enterprises of different sizes just have different names of financing. Small and medium-sized enterprises are generally called loans and large enterprises are called financing. At the same time, it also brings the characteristics of financing, hoping to help you further understand the relevant legal knowledge.

The difference between financing and loan

Loan is a way of financing.

There are many ways of financing, and the simplest way is to borrow money. There are two main types: creditor's rights and equity. Debt financing is financing with collateral. Bank loans require you to issue collateral, and the loan amount is determined according to the value of collateral. Equity financing means that you give up part of the company's equity in exchange for financing.

There are many specific financing methods:

1, borrowing money (that is, borrowing money with or without interest)

2. Loans (banks)

3. Property rights financing

4. Trust financing

5. Insurance financing

Step 6 list

Extended data:

Ordinary type

bank loan

Banks are the main financing channels for enterprises. According to the nature of funds, it is divided into three categories: working capital loans, fixed assets loans and special loans. Special loans usually have specific purposes, and their loan interest rates are generally favorable. Loans are divided into credit loans, secured loans and discounted bills.

Stock financing

The stock is permanent, has no expiration date, does not need to be returned, and has no pressure to repay the principal and interest, so the financing risk is small. The stock market can promote enterprises to change their management mechanism and truly become a legal entity and market competition subject with independent operation, self-financing, self-development and self-restraint. At the same time, the stock market provides a broad stage for asset reorganization, optimizes the organizational structure of enterprises and improves the integration ability of enterprises.

Bond financing

Corporate bonds, also known as corporate bonds, are securities issued by enterprises in accordance with legal procedures and agreed to repay the principal and interest within a certain period of time, indicating that there is a creditor-debtor relationship between the issuing enterprises and investors. Bondholders do not participate in the operation and management of the enterprise, but have the right to recover the agreed principal and interest on schedule. When an enterprise goes bankrupt and liquidates, creditors have priority over shareholders in claiming compensation for the remaining property of the enterprise. Corporate bonds, like stocks, are securities and can be freely transferred.

Financial leasing

Financial leasing refers to the financing mode in which the lessor purchases the leased property from the supplier according to the lessee's choice of the supplier and the leased property, and provides it to the lessee for use, and the lessee pays the rent in installments within the time limit stipulated in the contract or contract.

Through the combination of financing and finance, financial leasing has the dual functions of finance and trade, and plays a very obvious role in improving the financing efficiency and promoting the technological progress of enterprises. Financial leasing includes direct purchase leasing, after-sale leaseback and leveraged leasing. In addition, there are many forms of leasing, such as the combination of leasing and compensation trade, the combination of leasing and processing and assembly, and the combination of leasing and underwriting. The financial leasing business has opened up a new financing channel for the technological transformation of enterprises, and adopted a new form of combining financing with finance, which has improved the speed of introducing production equipment and technology, saved the use of funds and improved the utilization rate of funds.

Overseas financing

The overseas financing methods available to enterprises include loans from international commercial banks, loans from international financial institutions, and bond and stock financing business of enterprises in major overseas capital markets.

Pawn financing

Pawn is a kind of financing method that takes physical objects as collateral and obtains temporary loans in the form of physical object ownership transfer. Compared with bank loans, pawn loans have high cost and small loan scale, but pawn also has incomparable advantages over bank loans. First of all, compared with the bank's almost harsh requirements for the borrower's credit conditions, the pawnshop's credit requirements for customers are almost zero, and the pawnshop only pays attention to whether the pawned items are genuine. Moreover, general commercial banks only pledge real estate, while pawn shops can pledge both movable property and real estate. Secondly, the starting point of pawn items in pawn shops is low, and items of 1000 yuan and 100 yuan can be pawned. Contrary to banks, pawn shops pay more attention to serving individual customers and small and medium-sized enterprises. Third, compared with the complicated procedures and long approval cycle of bank loans, the procedures of pawn loans are very simple and most of them are desirable. Even property mortgage is much more convenient than bank. Fourth, when a customer borrows money from a bank, the purpose of the loan cannot exceed the scope stipulated by the bank. Pawnshops, on the other hand, don't ask about the purpose of loans, and the money is very free to use. Repeatedly, the utilization rate of funds has been greatly improved.

P2C internet micro-finance financing platform

P2C loan model

Companies and small and medium-sized enterprises are borrowers, but the information and operation of enterprises are relatively fixed, with stable cash flow and repayment sources, and the information is easy to verify. At the same time, the default cost of enterprises is much higher than that of individuals, and they need guarantees and mortgages, so their security is relatively better. Investors can benefit from the high annual income of crowdfunding, and borrowing enterprises can achieve low financing cost and flexible loan term, which also makes the use efficiency of loans more obvious. At the same time, the loan cycle and the project cycle are more matched.

The international monetary fund (IMF)

The means is fake stocks and secret loans. As the name implies, the so-called fake stock secret loan means that investors invest in projects in the form of shares, but actually do not participate in project management. Withdraw from the project at a certain time. This method is mostly adopted by foreign funds. The disadvantage is that the operation cycle is long, and it is necessary to change the shareholder structure and even the nature of the company. There are many foreign funds, so if you invest in this way, the nature of domestic companies will be changed to Sino-foreign joint ventures.

Bank's Acceptance Bill

In order to conclude a transaction, the financing enterprise may apply to the bank for issuing a bank acceptance bill. After the bank has passed the examination and approval, it will formally accept the bank acceptance contract, and the acceptance bank will sign the words of acceptance or seal on the acceptance bill. Such a bill accepted by a bank is called a bank acceptance bill, specifically, a bank guarantee to the buyer. The seller doesn't have to worry about not receiving the payment, because the buyer's guarantee bank will definitely pay the payment when it expires.

The advantage of bank acceptance bill financing is that enterprises can be short, frequent and fast, which can reduce the financial expenses of enterprises.

The investor will transfer a certain amount, such as 1 billion yuan, to the company account of the project party, and then immediately ask the bank to open a bank acceptance bill of 1 billion yuan. Investors take away bank acceptance bills. This financing method is of great benefit to investors, because it actually turns 1 100 million yuan into several uses. He can take this 100 million yuan bank acceptance bill to other banks and post another 100 million yuan. At least 20% off. But the question is, can the bank draw an acceptance bill of 1 100 million yuan with the 1 100 million yuan in the company account? Probably only 80% to 90% banks will accept it. Even if 100% is accepted by the bank, it is still a question how much money the bank allows you to use in the company account. It depends on the level of the company and its relationship with the bank. In addition, the biggest drawback of acceptance is that according to national regulations, bank acceptance can only be opened for 12 months at most. Most places can only be opened for half a year. That is, the fee must be renewed every 6 months or 1 year. It's troublesome to use money for a long time.

Direct deposit

This is the most difficult financing method. Because direct deposit is against bank regulations, the relationship between enterprises and banks must be particularly good. The investor shall open an account in the bank designated by the project party and deposit the specified amount into his own account. Then sign an agreement with the bank. Promise not to misappropriate the money within the specified time. According to this amount, the bank gives the project party a loan less than or equal to the same amount. Note: We promise not to pledge the bank here. I don't agree to mortgage the money. It is another financing method called large pledged deposit that agrees to pledge. Of course, that kind of financing also has its own violations of bank regulations. That is, the bank needs to sign a letter of commitment to ensure that the payment is completed 30 days before the maturity. In fact, after he gets this thing, he can take it to other banks for refinancing.

bank letter of credit

The state has a policy that a bank letter of credit issued by a global commercial bank (such as Citigroup) that agrees to finance an enterprise is regarded as having the same amount of deposit in the enterprise account. In the past, many enterprises used this kind of bank letter of credit to circle money. Therefore, the national policy has changed slightly, and it is difficult for domestic enterprises to raise funds in this way. Only wholly foreign-owned enterprises and Sino-foreign joint ventures are allowed. Therefore, if domestic enterprises want to raise funds in this way, they must first change the nature of the enterprise.

entrusted loan

The so-called entrusted loan means that the investor sets up a special fund account for the project party in the bank, then transfers the money into the special fund account and entrusts the bank to lend money to the project party. This is a relatively easy way of financing. Usually, the audit of the project is not very strict, and the bank is required to make a commitment to collect interest and repay the principal from the project party every year. Of course, those who don't repay the principal only need to promise to collect interest every year.

Direct payment

Direct payment means direct investment. Such strictly examined projects often require fixed assets mortgage or bank guarantee. Interest is also relatively high. Mostly short-term. The minimum personal contact is 18 annual interest. Generally above 20.

The eighth financing method is hedge fund. There is a kind of entrusted loan in the market that does not repay the principal and interest, and it is a typical hedge fund.

Loan guarantee letter

More investment guarantee companies in the market can obtain much-needed funds by paying higher interest than banks.

National fund

Mainly from the central foreign trade development fund. If enterprises want to raise funds through this channel, it should be noted that the main contents of market development funds include: overseas exhibitions, quality management systems, environmental management systems, certification of software export enterprises and various products, promotion and publicity of international markets, development of emerging markets, training and seminars, overseas bidding, etc. And give priority to the expansion of emerging international markets, such as Latin America, Africa, the Middle East, Eastern Europe and Southeast Asia.