The difference between direct financing and indirect financing mainly lies in whether the demanders and suppliers of funds directly form the creditor-debtor relationship during the financing process. \x0d\ The detailed differences between direct financing and indirect financing are as follows: \x0d\ 1. Different concepts: \x0d\ 1. Direct financing refers to the financial behavior that the fund supplier and the fund demander directly form the creditor-debtor relationship through certain financial instruments. \x0d\ 2。 Indirect financing refers to indirect financing between capital suppliers and capital demanders through financial intermediaries. \x0d\ II。 Different financing instruments: \x0d\ 1. Tools for direct financing: \ x0d \ a. Commercial paper and direct loan certificate; \ x0d \ B. Stocks and bonds. \x0d\ 2。 Indirect financing instruments: \x0d\ various financing instruments issued by financial institutions, such as certificates of deposit and loan contracts. \x0d\ III。 Advantages are different: \x0d\ 1. Advantages of direct financing: \ x0d \ a. The close relationship between the supply and demand sides of funds is conducive to the rational allocation of funds and the improvement of resource utilization efficiency. \ x0d \ B. Low financing cost and high investment return. \x0d\ 2。 Advantages of indirect financing: \ x0d \ a. Diversified financing tools can flexibly and conveniently meet the financing needs of both the capital supply and demand sides. \ x0d \ B. Financial institutions can reduce risks through diversified strategies, with high security. \ x0d \ c. It is conducive to improving the scale efficiency of financial activities and the efficiency of the use of funds in the whole society. \x0d\ IV。 Different restrictions: \x0d\ 1. Restrictions on direct financing: \ x0d \ a. Both parties to direct financing are subject to many restrictions in terms of capital amount, term and interest rate. \x0d\ b The liquidity and liquidity of direct financing instruments are limited by the development of financial markets, and are generally lower than those of indirect financing instruments. \ x0d \ C. The risks and responsibilities of fund suppliers are relatively large. \x0d\ 2。 Limitations of indirect financing: \ x0d \ a. The direct contact between the supply and demand sides of funds is cut off, which is not conducive to the supplier's supervision and restraint on the use of funds. \ x0d \ b. For the demand side, the financing cost is increased; For suppliers, it reduces revenue.