What is the financing method of unlisted companies?

Legal analysis: the financing methods of non-listed companies include private equity financing, trust equity financing and equity pledge financing. If the equity pledge is used for direct financing, the pledge registration shall be handled. After the pledge of the equity, the transfer of the equity is restricted and may not be transferred without the consent of the pledgor and the pledgee.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 425 Where the debtor or a third party transfers his movable property to the creditor to guarantee the performance of the debt, and the debtor fails to perform the due debt or the creditor has the right to be paid in priority for the movable property. The debtor or the third party specified in the preceding paragraph is the pledger, the creditor is the pledgee, and the delivered movable property is the pledged property.

Article 443rd Where a fund share or equity is pledged, the pledge right shall be established at the time of pledge registration. After the pledge, the fund share and equity shall not be transferred, except that the pledgor and the pledgee agree through consultation. The pledgor shall pay off the debts in advance to the pledgee or deposit the proceeds from the fund share and equity transfer.