Creditor's rights financing refers to the financing by borrowing money. For the funds obtained by creditor's rights financing, the enterprise must first bear the interest of the funds and repay the principal of the funds to the creditors after the loan expires. Debt financing means that the enterprise just borrows money from the investor, the investor becomes the creditor, the enterprise becomes the debtor, the creditor is not a shareholder, does not enjoy any shareholder treatment, and repays the principal and interest at maturity according to the interest agreed by both parties. This kind of financing, especially for bridge funds, often gives relatively high interest when enterprises are in urgent need of funds.
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