What is the financing method of equity pledge?

Legal analysis: according to the different targets, equity pledge financing can be mainly divided into two categories: equity pledge financing of unlisted companies and equity pledge financing of listed companies.

1. SMEs directly carry out equity pledge financing with banks and other financial institutions.

2. The shareholders of the company provide counter-guarantee to the guarantee company in the form of equity pledge, and carry out equity pledge financing.

3. Inter-company guarantee based on the delivery conditions of equity transfer funds, and equity pledge financing shall be implemented.

Legal basis: Article 443rd of the Civil Law of People's Republic of China (PRC) pledges the fund share or equity, and the pledge right is established upon the completion of the pledge registration. After the pledge, the fund share and equity shall not be transferred, except that the pledgor and the pledgee agree through consultation. The pledgor shall pay off the debts in advance to the pledgee or deposit the proceeds from the fund share and equity transfer.