2. The purpose of financing is different. In addition to solving some financial problems of enterprises, equity financing is sometimes a kind of resource mutual assistance in the process of enterprise development, that is, using the resources of invested enterprises to help the invested enterprises develop rapidly. Debt financing is pure financial financing, and the borrower is only the financier of the financing enterprise.
3. The intensity and difficulty of financing are different. Equity financing is relatively difficult, because investment enterprises need to bear certain risks, but after successful financing, there will be huge premium space, that is to say, the original equity of 1 may be priced at 10, which will bring financing funds and capital premium, which is the increase of capital reserve in financial language. And debt financing often turns 1 into 0.7 or even lower. Because when a financial institution evaluates that it can give a loan amount, it is the discounted amount given after discounting your assets.
4. Different recycling methods. It can also be said that the exit mode is different. There are many ways to withdraw from equity financing, from angel investors' full support, even not withdrawing, to VC's withdrawal on the condition of listing on the New Third Board, and then to PE investors' withdrawal from gambling terms. Debt financing means that the principal and interest can be repaid after the repayment period is over.
Measures for the Administration of Financial Asset Investment Companies (for Trial Implementation) Article 29 A financial asset investment company shall strictly follow the principles of clean transfer and true sale when purchasing bank creditor's rights, carefully evaluate the quality and risk of creditor's rights through evaluation or valuation procedures, adhere to market-oriented pricing, and realize the true and complete transfer of assets and risks.
The evaluation or valuation of bank creditor's rights can be determined by financial asset investment companies and banks after due diligence on enterprises, and can also be implemented by independent third parties. Bank creditor's rights can be transferred by public means such as bidding and auction, or the fair price can be determined through independent consultation on the basis of evaluation or valuation, allowing financial asset investment companies to purchase bank creditor's rights at a discount.
After a financial asset investment company makes equity investment in an enterprise, if the enterprise uses all the equity investment funds to repay the bank's creditor's rights, it shall agree with the enterprise to repay the bank's creditor's rights within a reasonable period of time, and agree on the pricing mechanism for the repaid bank's creditor's rights to ensure that the bank's creditor's rights are repaid according to the actual value. Financial asset investment companies shall agree with enterprises on necessary supervision measures for the use of funds to prevent enterprises from misappropriating equity investment funds.