The debt financing methods of private enterprises include:

1. Private loans;

2. Entrusted loans, which are provided by government departments, enterprises, institutions, individuals, etc. A loan in which the principal provides funds and the lender, etc. issues, supervises its use and assists in the recovery;

3. Other debt financing methods of private enterprises.

Legal Basis

Article 7 of the "General Principles of Loans"

Proprietary loans, entrusted loans and specific loans:

Proprietary loans , refers to a loan independently issued by a lender with funds raised in a legal manner. The risk is borne by the lender, and the principal and interest are recovered by the lender.

Entrusted loans refer to funds provided by clients such as government departments, enterprises, institutions, and individuals, and the lender (i.e., the trustee) determines the loan object, purpose, amount, period, interest rate, etc. Issue, supervise the use of, and assist in the recovery of loans. The lender (trustee) only charges a processing fee and does not bear the risk of the loan.

Specific loans refer to loans that the State Council approves and instructs wholly state-owned commercial banks to issue after taking corresponding remedial measures for possible losses caused by the loans.