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What is the purpose of enterprise financing?
There are various ways for enterprises to raise funds, such as financing, borrowing, selling stocks, etc. Among them, the most commonly used way is financing. However, enterprise financing is not easy, and its process requires many procedures and formalities. So what is the purpose of enterprise financing besides raising funds? Let's get to know each other. What is the purpose of enterprise financing? 1. Capital is the first and continuous driving force of enterprise economic activities. Whether an enterprise can obtain a stable source of funds and raise the funds needed by the combination of production factors in time and in full is very important for its operation and development. 2. The biggest obstacle in the development of private enterprises in China is the financing dilemma. About 8% of the private enterprises surveyed believe that financing difficulty is a general or main constraint. In the start-up stage, more than 9% of the initial funds are provided by the main owners, members of the start-up team and their families, and bank loans and loans from other financial institutions or non-financial institutions play a small role. Financing can solve the capital problem of private enterprises in China. Article 26 of the Company Law The registered capital of a registered capital limited liability company is the capital contribution subscribed by all shareholders registered at the company registration authority. Where laws, administrative regulations and the decision of the State Council have other provisions on the paid-in registered capital and the minimum registered capital of a limited liability company, those provisions shall prevail. Article 27 Mode of Contribution Shareholders may make capital contribution in cash, or in kind, intellectual property rights, land use rights and other non-monetary properties that can be valued in money and transferred according to law. However, except for the property that cannot be used as capital contribution as stipulated by laws and administrative regulations. Non-monetary property as capital contribution shall be appraised and verified, and the valuation shall not be overestimated or underestimated. Where laws and administrative regulations provide for evaluation and pricing, such provisions shall prevail. Article 28 Shareholders with capital contribution obligations shall pay their respective subscribed capital contributions as stipulated in the Articles of Association in full and on time. Where shareholders make capital contributions in cash, they shall deposit their capital contributions in full into the account opened by the limited liability company in the bank; Where capital contribution is made by non-monetary property, the procedures for the transfer of property rights shall be handled according to law. If a shareholder fails to pay the capital contribution in accordance with the provisions of the preceding paragraph, he shall not only pay the company in full, but also bear the liability for breach of contract to the shareholders who have paid the capital contribution in full on time.