Can companies borrow money from individuals?

Legal analysis: enterprises can borrow money from individuals. According to the Supreme People's Court's Reply on How to Confirm the Effectiveness of Lending between Citizens and Enterprises, lending between citizens and non-financial enterprises belongs 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 lending;

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 Laws in the Trial of Private Lending Cases Article 26 If the interest rate agreed by both borrowers and lenders does not exceed 24% per annum, the people's court shall support it. The interest rate agreed between the borrower and the borrower exceeds the annual interest rate of 36%, and the interest agreement in excess is invalid. The people's court shall support the borrower's request to the lender to return the part of the interest paid that exceeds 36% per annum.