Legally, the difference between project financing and enterprise financing is that, in general, the financing methods of enterprises can be divided into endogenous financing and exogenous financing. Endogenous financing mainly refers to the process of converting the cash flow generated by the internal production and operation activities of an enterprise into enterprise investment, that is, investing retained earnings and depreciation as funds for enterprise expansion. Endogenous financing does not require enterprises to pay interest or dividends, and the cost is relatively low, which can realize the financing purpose of enterprises under the premise of unchanged ownership structure. Endogenous financing generally depends on the profitability and profit level of enterprises. It has the characteristics of low risk, low cost and autonomy, and is an important factor to promote the continuous development and growth of an enterprise. It is often the preferred financing method for enterprises. When the funds obtained from internal financing cannot meet the needs of enterprises, enterprises will obtain funds through external financing. Exogenous financing mainly refers to the process of obtaining enterprise development funds from outside the enterprise and transforming them into their own investment. Generally speaking, exogenous financing can be divided into equity financing and debt financing according to the property right relationship. Among them, equity financing can be divided into private equity and public equity. Private placement refers to the process of raising funds by issuing shares to specific investors, while public offering refers to the process of raising funds by issuing shares to the public. There is no need to repay the principal and interest when the equity financing expires, and there is no pressure to repay the funds. It is usually called the permanent capital of an enterprise. Debt financing can be divided into bank loans, corporate bonds, financial leasing, commercial credit and so on. Except for short-term financing by commercial credit between enterprises, other debt financing generally requires enterprises to repay the principal and interest regularly. Enterprises are under great pressure and have high financing costs. The financial risks of enterprises mainly come from debt financing. Exogenous financing makes the funds raised by enterprises much higher than endogenous financing, especially for enterprises that need to raise a lot of funds. Pure internal financing cannot raise all the funds needed by enterprises, and often.
Legal objectivity:
Measures for the administration of margin financing and securities lending business of securities companies Article 10 A securities company engaged in margin financing and securities lending business shall, in its own name, open a special securities account for margin financing and securities lending, a secured securities account for customer credit trading, a securities settlement account for credit trading and a settlement account for credit trading funds at a securities registration and settlement institution. The special securities account for securities lending is used to record the securities held by securities companies to be sold to customers and the securities returned by customers, and shall not be used for securities trading; The customer credit transaction guarantee securities account is used to record the securities held by the securities company entrusted by the customer, and the creditor's rights generated by the guarantee securities company's margin financing and securities lending to the customer; The securities settlement account for credit transaction is used for securities settlement of customer margin trading; The credit transaction fund settlement account is used for the fund settlement of customer margin trading.