Enterprises need a good governance structure for financing. First of all, the financial and asset ownership of the enterprise itself should be clear, with accounts to check and no bad credit records. It also needs to be established for a certain period of time, at least one year, and continue to make profits. The asset-liability ratio of enterprises should not be too high, generally not exceeding 60%, otherwise it is difficult to apply for loan financing. People's Republic of China (PRC) SME Promotion Law Article 19 The state improves the secured financing system and supports financial institutions to provide secured financing for SMEs with accounts receivable, intellectual property rights, inventories, machinery and equipment, etc. Article 20 When small and medium-sized enterprises apply for secured financing with accounts receivable, the payer of accounts receivable shall confirm the creditor-debtor relationship in time and support the financing of small and medium-sized enterprises. The state encourages small and medium-sized enterprises and payers to confirm the relationship between creditor's rights and debts through the accounts receivable financing service platform, so as to improve financing efficiency and reduce financing costs.
Legal objectivity:
Article 178 of the Company Law When a limited liability company increases its registered capital, the contribution of the newly-increased capital subscribed by shareholders shall be implemented in accordance with the relevant provisions of this Law on the establishment of a limited liability company. When a joint stock limited company issues new shares to increase its registered capital, shareholders shall subscribe for new shares in accordance with the relevant provisions of this Law on the establishment of a joint stock limited company and the payment of shares.