Can a business borrow from an individual, and can a business borrow from an individual

Businesses can borrow money from individuals. According to the Reply of the Supreme People's Court on How to Confirm the Validity of Lending between Citizens and Enterprises, loans between citizens and non-financial enterprises are private loans.

As long as the intention of both parties is true, it can be found to be valid. However, in any of the following circumstances, it shall be found invalid:

1. Enterprises illegally raise funds from employees in the name of loans;

2. Enterprises illegally raise funds from the society in the name of loans;

3. Enterprises issue loans to the public in the name of loans;

4. Other violations of laws and administrative regulations.

Legal basis] Article 26 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases stipulates that if the interest rate agreed between the borrower and the borrower does not exceed 24% per annum, and the lender requests the borrower to pay interest at the agreed interest rate, the people's court shall support it.

If the interest rate agreed between the borrower and the borrower exceeds 36% per annum, the interest agreement on the excess part shall be invalid. Where the borrower requests the lender to return the interest paid in excess of 36% of the annual interest rate, the people's court shall support it.

OK. 1. When an enterprise borrows money from an individual:

Borrow: Bank deposit.

Credit: Other Payables - Personal Borrowings.

2. When the enterprise repays the loan to the individual:

Borrow: Other payables - personal borrowings.

Credit: Bank deposits.

3. It should be noted here that when an enterprise pays interest to the borrower, it needs to withhold and pay individual income tax, which is handled as follows:

Borrow: Finance Expense – Interest on Borrowing.

Credit: Bank deposits.

Other payables – withholding tax.

If you need to borrow money, where can you borrow it? In fact, there are some ways to solve the problem. The first is to borrow money from relatives and friends; The second is through a bank loan, but the application process is more complicated and the application time is longer.

The third is to apply for a credit loan through the Internet credit platform, with the advantage of which is that individuals can apply online, and it is more convenient to apply for the account.

Here is a reminder that it is best to choose a reliable big brand on the market for credit borrowing, such as Alipay's borrowing and Du Xiaoman Finance's Youqian Hua. Youqianhua, formerly known as "Youqianhua", is a credit brand under Du Xiaoman Finance (formerly Finance), which provides users with safe, convenient, unsecured and unsecured credit services.

Du Xiaoman Finance will effectively implement the call of the state to support small and micro enterprises to tide over the difficulties, and its credit service brand has the money to spend to fully support the production and operation of small and micro enterprises, and Du Xiaoman Finance is the primary choice for most small and micro business owners when their capital turnover. It is reported that seventy percent of the credit users of Du Xiaoman Finance are small and micro business owners. Up to now, Du Xiaoman Finance has joined hands with dozens of financial partners to issue hundreds of billions of yuan in loans to small and micro business owners.

This is provided by Kangbo Finance, which focuses on the interpretation of financial hot events, the popularization of financial knowledge, adheres to professionalism, pursues fun, makes financial content that people can understand, and conveys financial value in a vivid and diverse way. Hope this helps.

Legal Analysis: Businesses cannot borrow from individuals. The Reply of the Supreme People's Court on the Issue of How to Determine the Validity of Lending between Citizens and Enterprises stipulates that loans between citizens and non-financial enterprises (hereinafter referred to as enterprises) are private loans in distress.

As long as the intention of both parties is true, it can be found to be valid. However, in any of the following circumstances, it shall be found to be invalid: (1) the enterprise illegally raises funds from employees in the name of loans; (2) Enterprises illegally raise funds from the public in the name of loans; (3) Enterprises issue loans to the public in the name of loans; (4) Other violations of laws and administrative regulations.

Legal basis: Article 668 of the Civil Code of the People's Republic of China stipulates that the loan contract shall be in written form, unless otherwise agreed upon in the loan between natural persons. The content of the loan contract generally includes the type of loan book, currency, purpose, amount, interest rate, term and repayment method.

Businesses can generally borrow money from individuals. Private lending as defined by law refers to the act of financing between natural persons, legal persons and unincorporated organizations. However, enterprises are not allowed to raise funds from their employees or illegally absorb deposits from the public.

Legal basis. Article 1 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases "Private lending" as used in these Provisions refers to the act of financing between natural persons, legal persons and unincorporated organizations. These Provisions shall not apply to disputes arising from the issuance of loans and other related financial businesses of financial institutions and their branches established with the approval of the financial regulatory authorities.

Businesses are able to make requests for loans from individuals. The financing of funds that can be borrowed between natural persons, legal persons and unincorporated organizations. An enterprise may be a legal person or an unincorporated organization, so it can borrow money from individuals and enter into a loan contract in accordance with the law.

Legal basis.

Article 1 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases by Wu Nian.

The term "private lending" as used in these Provisions refers to the act of financing between natural persons, legal persons and unincorporated organizations.

These Provisions do not apply to disputes arising from the issuance of loans and other related financial services of financial institutions and their branches established with the approval of the financial regulatory authorities to engage in loan business.

Article 2. When a lender initiates a private lending lawsuit with a people's court, it shall provide proof of creditor's rights such as IOUs, receipts, and IOUs, as well as other evidence that can prove the existence of a legal relationship between the lenders.

Legal Analysis: Businesses can borrow money from individuals; According to the provisions of the Reply of the Supreme People's Court on How to Confirm the Validity of Loans between Citizens and Enterprises, loans between citizens and non-financial enterprises are private loans, which can be found to be valid as long as the intentions of both parties are true, but if they have one of the following circumstances, they shall be deemed invalid:

1. Enterprises illegally raise funds from employees in the name of loans;

2. Enterprises illegally raise funds from the society in the name of loans;

3. Enterprises issue loans to the public in the name of loans;

4. Other violations of laws and administrative regulations.

Legal basis: Article 26 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases provides that if the interest rate agreed upon by the borrower and the borrower does not exceed 24% per annum, and the lender requests the borrower to pay interest at the agreed interest rate, the people's court shall support it. Where the interest rate agreed upon by the borrower and the borrower exceeds 36% of the annual interest rate, and the interest agreement on the excess part is invalid, and the borrower requests the lender to return the interest paid in excess of 36% annual interest rate, the people's court shall support it.

According to Article 1 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases, the term "private lending" as used in these Provisions refers to the act of financing between natural persons, legal persons, and other organizations and among themselves. As a result, businesses can borrow money from individuals.

In handling loan cases, the court will follow the principles of voluntariness, mutual benefit, fairness and legality, sell and dismantle disputes, protect the legitimate rights and interests of creditors and debtors, and restrict usury.

The following situations are invalid loans:

Enterprises illegally raise funds from employees in the name of loans;

Enterprises illegally raise funds from the public in the name of loans;

Enterprises issue loans to the public in the name of loans;

Other violations of laws and administrative regulations.

According to the regulations, as long as the agreed interest rate is less than four times the interest rate of the same type of bank loan, and there is no act prohibited by law, it is legal and valid and should be protected by law.

Reference] Personal Loan --- Encyclopedia.