Is it legal for companies to borrow money from individuals?

Legal analysis: Under normal circumstances, it is legal for companies to borrow money from individuals. It is legal for companies to borrow money from individuals: loans between citizens and non-financial enterprises (hereinafter referred to as enterprises) belong to private lending. As long as the meaning of both parties is true, it can be considered as valid. However, in any of the following circumstances, it shall be deemed invalid: 1. Enterprises illegally raise funds from employees in the name of borrowing money; 2. Enterprises illegally raise funds from the society in the name of borrowing; 3. Enterprises issue loans to the public in the name of lending; 4. Other acts in violation of laws and administrative regulations.

Legal basis: Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases.

Article 14 In any of the following circumstances, the people's court shall deem the private loan contract invalid:

(a) to obtain credit funds from financial institutions and lend them to borrowers at high interest rates, and the borrowers knew or should have known in advance;

(2) The borrower knows or should know in advance that the funds obtained by borrowing from other enterprises or raising funds from employees of the unit are lent to the borrower for profit;

(3) The lender knows in advance or should know that the borrower is still providing loans for illegal and criminal activities;

(4) Violating public order and good customs;

(five) other violations of the mandatory provisions of laws and administrative regulations.

Article 23 If the legal representative or person in charge of an enterprise signs a private loan contract with the lender in the name of the enterprise, and the lender, the enterprise or its shareholders can prove that the loan belongs to the legal representative or person in charge of the enterprise, and the lender requests that the legal representative or person in charge of the enterprise be listed as a co-defendant or a third party, the people's court shall allow it.

If the legal representative or person in charge of an enterprise signs a private loan contract with the lender in the name of an individual, and the loan is used for the production and operation of the enterprise, and the lender requests the enterprise and the individual to share the responsibility, the people's court shall support it.