How Should Smes Avoid The Legal Risks Of Financing?

Sun Dawu, a famous entrepreneur in Hebei, initiated the first case of private financing crime in China. P

He founded the "Da Wu agriculture and animal husbandry group" once became one of the top five hundred Chinese private enterprises.

However, he was convicted of illegally absorbing public deposits for borrowing 180 million yuan from more than 3000 farmers.

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In May of the year before May, Wu Ying, Zhejiang, was convicted of fund-raising fraud, which triggered another discussion on many legal issues involving private lending.

It can be seen that SME financing is inevitable, and financing risks are heavy.

Then, what are the main legal risks in the financing process and how to avoid them? < /p >

< p > recently, the Wuhan SME Service Center invited the lawyer of Hubei Xinan law firm Tang Hui to give lectures and teach more than 100 private enterprise executives to guard against legal risks.

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< p > < strong > financing and guarding against two kinds of main criminal risks < /strong > < /p >

< p > the most common way of financing for SMEs is < a href= "//www.sjfzxm.com/news/index_c.asp" > private financing < /a > and < a href= > //www.sjfzxm.com/news/index_c.asp > > bank loans > /a >

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< p > there is only one piece of paper between private financing and illegal fund-raising. If it is illegal fund-raising, it will be suspected of fund-raising fraud or illegal absorption of public deposits.

This is also the easiest part of the financing process.

In the bank loan financing, some small and medium-sized enterprises, because of the difficulty in financing, obtain bank loans and use fraudulent documentary documents to defraud bank loans in the process of financing, thus causing fraud, acceptance of bills, financial tickets and contract fraud.

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< p > < strong > the risk of financing specific objects is less than /strong > /p >

< p > judicial interpretation stipulates that public funds are not illegally absorbed or disguised illegally in public deposits, but not openly publicized to society or absorbed funds within specific objects by relatives or friends.

As a result, enterprises try to raise funds to enterprises and their relatives and friends instead of openly publicizing the society.

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< p > loans to banks should be determined according to the actual project loans, select the appropriate quality (pledge).

If an enterprise knows that there is no large amount of funds to be swindled without the ability to return, and the value of goods used for pledge is much lower than that of loans, enterprises will be deemed to have illegally acquired loans.

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< p > for this purpose, arrange forensic personnel to conduct legal review and analysis of contracts needed for financing, so as to avoid potential legal risks.

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< p > < strong > a href= < //www.sjfzxm.com/news/index_c.asp > financing fund < /a > should be used in production and operation < /strong > /p >

< p > except in the financing process, there can be no false statement, false information and no use of loans. The most important way to avoid legal risk is to restrict the use of financing to the production and operation of enterprises.

Financing funds for legitimate production and operation activities, even if operating losses or cash flow difficulties, can not timely payment of principal and interest to cause disputes, generally do not cause criminal legal risks.

If the loan objects are relatively fixed employees or their relatives and friends, then most disputes will arise from private lending, for example, if the loan object is not a specific majority, if the consequences are not particularly serious, they will not be dealt with according to the crime.

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< p > thus, it is an effective way for enterprises to avoid criminal legal risks in the financing process.

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