What is it that companies borrow money from each other?

Inter-enterprise borrowing refers to the civil behavior of borrowing funds from each other between two enterprises without financial management rights. Paragraph 2 of Article 11 of the Law on Commercial Banks clearly stipulates that no unit or individual may engage in commercial banking business such as absorbing public deposits without the approval of the the State Council Banking Regulatory Authority. Money lending is a kind of financial business, and its stability is related to the long-term stability of a country's economy. It can only be monopolized by financial institutions designated by the state, and lending between non-financial institutions has always been prohibited by the laws of China. For a long time, the judicial practice has always held a negative attitude towards the effectiveness of inter-enterprise loan contracts, that is, they think that inter-enterprise loan contracts are illegal and should be invalid. On the treatment of enterprise loan interest. According to the judicial interpretation issued by the Supreme People's Court, when dealing with illegal loan disputes between enterprises, the borrower only returns the principal, not the interest. Moreover, during the period from the repayment date agreed in the contract to the expiration of the time limit for the borrower to return the principal, the interest that the parties have obtained or the interest that has been agreed but not yet obtained shall be fully recovered. This law is based on the contract law.