Small companies can borrow money after signing contracts with listed companies. After signing a contract with a company, it is possible to get a loan. Different types of contracts, different ways of informing and good cooperation, listed companies need property certificates of small companies to explain the loan situation to listed companies.
Can the legal representative of a listed company borrow money?
You can apply for a corporate loan.
The legal representative may apply for personal loans in the name of an individual or a company.
If an individual applies for a loan in his own name, he is responsible for repayment. And apply for a loan in the name of the company, then the company will bear the responsibility for repayment. It should be noted that the application conditions and audit standards of personal loans and corporate loans are completely different. It can be said that the loan amount of personal loans is relatively limited, while the loan amount of corporate loans will definitely be higher than personal loans.
Can't companies that want to go public get loans?
Companies that want to go public can have loans.
Loans provided by banks for joint ventures to be listed can be roughly divided into medium and long-term loans and bridge loan. The term of medium and long-term loans is usually 3-5 years, and it is expected to survive or partially survive until the maturity date after the listing of JV; The purpose of bridge loan is only to meet the short-term capital demand of JV before listing in 1-2.
Therefore, in the case of JV as a borrower, an early repayment ratio (usually between 20% and 50% of the loan amount) is usually agreed in the financing documents of medium and long-term loans. When JV goes public, it will be forced to use part of the obtained funds to repay in advance, and the remaining loans will continue to be repaid after listing, and JV will continue to repay according to the corresponding repayment schedule. Accordingly, bridge loan usually requires JV to repay the bank loan in full in advance when it goes public, so as to realize the withdrawal of the bank.
Does the new fourth board listed company need to announce the loan to the bank?
No announcement is needed.
According to the relevant laws and regulations, listed companies directly apply for loans or credit lines from banks, and usually do not need to perform audit procedures and information disclosure obligations with reference to transaction matters.
When a listed company raises money from a bank, it usually doesn't need to make an announcement. If matters such as guarantee, mortgage and pledge are involved, corresponding procedures shall be performed in accordance with the relevant provisions of the Articles of Association.
Can banks use the funds raised by listed companies to issue loans?
The funds raised by listed companies are not bank deposits, and banks cannot directly use these funds to issue loans. There are two main ways for listed companies to raise funds, one is through IPO (initial public offering of shares), and the other is through issuing bonds. In both cases, the funds raised by listed companies will first enter the company's own account.
However, banks and listed companies can have a variety of cooperative relationships and financial services. For example, listed companies can deposit the funds in their own accounts in banks and earn interest income; Banks can also provide financial services such as loans or credit guarantees to listed companies to help them expand their business or investment.
In addition, the funds raised by listed companies can increase their financial strength and market competitiveness, which may further improve their credit rating and borrowing ability. If the credit rating of listed companies is high, banks can provide loans to them more easily, and preferential interest rates lower than market interest rates may give banks a competitive advantage among customers. Therefore, although banks cannot directly use the funds raised by listed companies to issue loans, they can benefit from the financing activities of listed companies to some extent.
Can a listed company borrow money? Let's stop here.