The main reasons are as follows:

According to the Constitution, Property Law, Contract Law, Company Law, Guarantee Law and other legal forms, it is confirmed that market entities have the right to use their own funds to make profits by borrowing. Article 40 of the Law of People's Republic of China (PRC) on the Promotion of Small and Medium-sized Enterprises encourages all kinds of social intermediary institutions to provide information consultation, investment and financing, loan guarantee, legal consultation and other services for small and medium-sized enterprises.

Intermediary refers to the connection between opposing poles in different things or the same thing. Opposing poles are combined through intermediary. The intermediary was polarized by the struggle of opposites, which led to the rupture of unity.

Intermediary is an organization that provides intermediary services to customers. It can't directly provide corresponding services and commodities, but it can find and arrange these services and commodities for you to choose and decide. For example, if you want to hold a small party at home, you need some professional waiters and chefs. You can find these people for you through an intermediary. You may also need a venue layout. Intermediaries can also arrange the purchase and layout of goods.

There are many intermediaries, mainly including trade intermediaries (providing trade information, customers and other related information), service intermediaries (providing information on the tertiary industry, such as domestic companies), network intermediaries (providing services through the Internet), logistics intermediaries, real estate intermediaries (including rental and sale), used car intermediaries (all kinds of used car service information), marriage intermediaries (arranging blind date and marriage) and so on.

The so-called intermediary, from the point of view of this word, means "playing the role of media in the middle." The organization mainly engaged in intermediary activities is the intermediary. Therefore, to clarify what is intermediary, we should first understand what is intermediary activity. Generally speaking, intermediary activities refer to the activities of intermediaries (natural persons or legal persons) to help Party A and Party B reach an agreement/contract. In the intermediary process, it involves signing a contract, publishing, looking for a partner of the entrusting party, coordinating the signing of a contract between Party A and Party B, assisting in signing a contract, pursuing compensation and other activities. The intermediary's task is to find partners for customers and play the role of temporary coordinator, not the substantive partners or the roles of buyers and sellers that any party wants.

legal ground

People's Republic of China (PRC) Civil Code

Article 961 An intermediary contract is a contract in which the intermediary reports to the client the opportunity to conclude a contract or provides media services for concluding a contract, and the client pays the remuneration.

Article 962 The broker shall truthfully report to the client the matters related to the conclusion of the contract.

If the broker intentionally conceals important facts related to the conclusion of the contract or provides false information, which harms the interests of the client, he shall not ask for payment of remuneration and shall be liable for compensation.