How to distinguish the relationship between guarantee companies and illegal fund-raising? Guarantee companies can also raise funds from individuals?

Guarantee companies, specifically enterprises or individuals, play the role of intermediary guarantee when applying for loans from banks. If a guarantee company has a credit line in a bank, it must pay a certain deposit to the branch where the bank is located before it is qualified to provide such intermediate guarantee services for customers and banks. Margin is generally a fixed enterprise deposit transferred from the company account of the guarantee company to the bank and frozen in the local branch. Generally, a part of the shares of the guarantee company will be set aside as the deposit of the bank. If the customer breaches the contract within the guarantee period, the guarantee company providing the guarantee service will pay this part of the fine first, and then withhold and remit it to the bank.

There are various forms of illegal fund-raising, but they all have certain characteristics, that is, illegal fund-raising.

According to Article 1 of the Interpretation on Several Issues Concerning the Specific Application of Laws in the Trial of Criminal Cases of Illegal Fund-raising, the act of absorbing funds from the public (including units and individuals) in violation of the national financial management laws shall be deemed as "illegally absorbing public deposits or absorbing public deposits in disguised form" as stipulated in Article 176 of the Criminal Law, unless otherwise stipulated in the Criminal Law:

(a) without the approval of the relevant departments according to law or in the form of borrowing legal business to absorb funds;

(two) through the media, promotion meetings, leaflets, mobile phone messages and other means to promote to the society;

(3) Commitment to repay the principal and interest or pay the return in the form of currency, material object or equity. In a certain period of time;

(four) to absorb funds from the public, that is, the social unspecified objects.

It is not illegal or disguised to absorb public deposits by absorbing funds from relatives, friends or units for specific targets without publicity to the society.

You can't raise money from society.

According to state regulations, it is illegal for legal persons, other organizations or individuals to raise funds from the public without the approval of the competent authorities. That is, investment companies cannot raise funds without authorization.

Investment companies that want to raise funds legally must observe the following points.

1 With regard to the lending behavior between natural persons and non-financial enterprises, this opinion holds that as long as the enterprise does not illegally raise funds from employees and society, issue loans to the public or commit other lending behaviors that violate the mandatory provisions of laws and administrative regulations, it shall be deemed as valid.

Can enterprises raise funds for internal employees and use them for production and operation? The "Opinions" clarify that as long as the enterprise does not publicize it to the public, it is considered that the lending behavior is effective.

3. Borrowing from other enterprises due to the needs of production and operation between non-financial enterprises is effective without violating the mandatory provisions of laws and administrative regulations.