Loan contracts signed between companies for financing should be legal and effective in principle. However, if a company lends money abroad for profit without obtaining relevant permission, it may be considered illegal and bear the responsibility of administrative punishment.

Legal basis: Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases.

Rule number one The term "private lending" as mentioned in these Provisions refers to the financing behavior between natural persons, legal persons and other organizations and between them.

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.

Article 2 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases? When the lender brings a lawsuit to the people's court, it shall provide such creditor's rights certificates as IOUs, receipts, IOUs and other evidence that can prove the existence of the legal relationship between lending and borrowing. If the creditor's rights certificate such as IOUs, receipts and IOUs held by the parties does not specify the creditor, and the party holding the creditor's rights certificate brings a private lending lawsuit, the people's court shall accept it. The defendant raised a factual defense against the plaintiff's creditor qualification. If the people's court considers that the plaintiff is not qualified as a creditor after trial, it shall rule to dismiss the prosecution.