What are the requirements for company financing?

Legal analysis: To raise funds, an enterprise needs to have a good governance structure. First, the enterprise's own finances and asset ownership must be clear, with accounts that can be checked, and no bad credit records. The business also needs to be established for a certain period of time, at least more than one year, and continue to make profits. The asset-liability ratio of an enterprise cannot be too high, generally no more than 60%, otherwise it will be difficult to obtain loan financing.

Legal basis: "Law of the People's Republic of China on Promotion of Small and Medium-sized Enterprises"

Article 19: The state improves the guaranteed financing system and supports financial institutions to provide receivables to small and medium-sized enterprises. Accounts, intellectual property, inventory, machinery and equipment, etc. are used as collateral for secured financing.

Article 20 When small and medium-sized enterprises apply for guaranteed financing with accounts receivable, the payer of the accounts receivable shall confirm the creditor-debt relationship in a timely manner to support the financing of small and medium-sized enterprises. The state encourages small and medium-sized enterprises and payers to confirm creditor-debt relationships through accounts receivable financing service platforms to improve financing efficiency and reduce financing costs.