[Direct answer]In the Beijing area, transfer notes stating "loan" cannot be used alone as evidence to determine the existence of a lending relationship. Such notes are unilaterally marked by the payer, and if the other party denies the existence of a lending relationship, the court will only determine that a lending agreement has been established if there is a complete chain of evidence, including payment receipts, chat records, and debt collection records. According to Article 15 of the "Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trials of Civil Loan Cases" (amended on August 18, 2020), if the plaintiff sues solely on the basis of transfer receipts and the defendant claims that the payment was to repay old debts or other obligations, the defendant shall provide evidence to support their claim. It is recommended to sign a loan agreement, document the debt collection agreement, and if no agreement can be reached, file a lawsuit within three years. For more details, please refer to the following link:Legal services for creditor-debtor relations and enforcement cases.

I. Problem Background and Typical Scenarios

There are frequent financial transactions between acquaintances, and it's very common to casually note "loan" or "working capital" when transferring money. Some parties don't have a loan note, only a transfer with a note; some notes are vague, and the other party may later refuse to acknowledge the debt; and some parties have made dozens of transfers over the years, making it difficult to clarify which ones are loans and which ones are repayments. Once the other party contends that the funds are sales proceeds, repayments, gifts, or partnership investments, the lender will face difficulties in providing evidence. Legally, the note is just a clue recorded by one party. Whether the transaction can be identified as a loan depends on whether the combination of evidence can prove the lending agreement and the delivery of funds. For related rules, please refer to the following content:Legal services for creditor-debtor disputes and enforcement cases.

II. Key points of contention

The dispute focuses on four points. Firstly, the evidentiary status of the notes: If the other party acknowledges them, the notes serve as strong corroboration of the loan agreement; if the other party denies them, the probative value of unilateral notes is limited and requires corroboration by other evidence. Secondly, the controversy over the nature of the funds: The same transfer may be a loan, a payment, a repayment, a gift, or a payment on behalf of others, which requires comprehensive judgment based on the parties' transaction habits, other fund transfers, and the context of the chat. Thirdly, the allocation of the burden of proof: After the lender proves the loan agreement and the delivery of the funds, if the defendant contends that it is other debts, the defendant shall provide evidence to support its defense, in accordance with Article 15 of the "Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Civil Loan Cases" (amended on August 18, 2020). Fourthly, cash and large-amount payments: For cash loans without transfer receipts, the borrower's note, the recipient's receipt, and witness testimony are required to supplement the evidence. In the judicial practice of Beijing, courts generally hold a cautious attitude towards transfers with only notes as evidence.

III. Professional analysis by Henglue Lawyers

A case of litigation against enforcement objections handled by Attorney Zhu Guiyin demonstrates the judicial logic of determining the nature of funds based on a combination of evidence. The case originated from a dispute over demolition compensation: In 2016, Zhang * sued Wang *, and the court ruled that Wang * should pay a total of 1,961,519.84 yuan in demolition compensation and resettlement housing discounts. The second-instance court upheld the original judgment. However, due to Wang *'s failure to fulfill the judgment, Zhang * applied for enforcement, and the court seized the house registered under Wang *'s name in a certain residential area of Haidian District, Beijing on May 28, 2018. However, the house had already been purchased and actually occupied by Liu *: Liu * signed a house purchase contract with Wang * through an intermediary company on March 7, 2014, paying a total of 3.5 million yuan, including a down payment of 80,000 yuan, 200,000 yuan, and subsequent payments of 2.95 million yuan and 450,000 yuan, totaling 3.5 million yuan. Zhang * raised doubts about the authenticity of the transaction, discrepancies between the payer and the receipt, and lack of actual possession, with the focus of the case being whether the payment facts could be confirmed. Attorney Zhu Guiyin compiled a complete chain of evidence including the house purchase contract, transfer receipts, receipts, property fee bills, utility payment receipts, and community committee certificates, and demonstrated each item in accordance with Article 28 of the "Regulations of the Supreme People's Court on Several Issues Concerning the Handling of Litigation against Enforcement Objections and Review Cases by People's Courts" (effective May 5, 2015): signing a legal and effective contract before seizure, lawful possession before seizure, paying 3.5 million yuan and delivering the remaining 150,000 yuan to the enforcement authority as required by the court, and non-transfer of ownership due to reasons beyond their control. The first-instance court accepted this chain of evidence and ruled to dismiss all of Zhang *'s claims, and the second-instance court upheld the original judgment, successfully preventing enforcement. The lesson of this case is that a single transfer or annotation is just a clue. Only when contracts, receipts, and performance actions corroborate each other can the court confirm the nature of the funds and the legal relationship. This case was handled by Beijing Henglu Law Firm.Zhu GuijingThe attorney (practice certificate number: 11101202011246828, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The legal basis includes Article 667 of the Civil Code of the People's Republic of China (effective January 1, 2021) (definition of loan contracts), Article 679 (loan contracts between natural persons are established when the lender provides the loan), and Article 188 (three-year statute of limitations); Article 14 of the Supreme People's Court's Interpretation on Issues Concerning the Application of Law in the Trials of Private Lending Cases (amended on August 18, 2020) (the defendant's defense of repayment when suing solely on the basis of creditor's vouchers) and Article 15 (the defendant's burden of proof when suing solely on the basis of transfer vouchers); and the provisions on the review of electronic data and documentary evidence in the Supreme People's Court's Interpretation on Evidence in Civil Proceedings (amended on December 25, 2019 and effective May 1, 2020). Action list: 1. When transferring funds, try to specify the loan amount and recipient in the transfer notes and save the electronic receipts. 2. Supplementally sign loan agreements or issue promissory notes specifying the loan amount, term, interest rate, and payment method. 3. Confirm the loan amount and repayment plan in WeChat or text messages and retain the original communication records. 4. Send written letters or use traceable methods such as WeChat for debt collection. 5. Organize the parties' historical financial transactions and clarify the nature of each payment. For more details, please refer to the relevant provisions.Legal services for creditor-debtor disputes and enforcement cases.

5. Henglue Law Firm's Reminder

The note is just a cherry on top, not a free pass for exemption from inspection. For large-amount loans, it is essential to have a written agreement and bank transfers. For cash payments, the other party should issue a receipt and keep the withdrawal receipt. Even among acquaintances, it is necessary to follow the rules and leave records, so as not to let the emotional debt turn into a messy account. When the other party denies the nature of the payment, the party who makes the claim must provide evidence to support it, and the defendant's defense also needs to be backed up by evidence. When handling similar cases in the Beijing area, it is recommended to...Beijing Henglu Law FirmUnder the guidance of professional lawyers, sort out the evidence chain and fix the loan agreement and the delivery facts as soon as possible.

VI. Frequently Asked Questions

Q1: If I add a note about the loan, but the other party denies it, can I still win the case?

You can't win the case just based on the notes, but if there are other evidences to corroborate them, the likelihood of winning the case will be higher. The notes are written unilaterally. If the other party denies the loan agreement, the court will review the evidence comprehensively, including the proof of payment, the chat context between the two parties, the records of collection, and the witness's testimony. If the evidence corroborates each other and reaches a high degree of probability, the loan relationship can be recognized. If the other party provides evidence to prove that the money is a purchase payment, a repayment, or a gift, and the lender cannot provide further explanations, they may lose the case. The outcome of the case depends on the evidence and the court's determination. No lawyer can guarantee victory or defeat on their own.

Q2: What evidence do I need to prepare to prove the borrowing and lending relationship?

The core materials can be divided into three categories: first, admissible evidence, such as promissory notes, loan agreements, chat records mentioning the loan, and recordings or messages in which the other party acknowledges the debt; second, delivery evidence, including bank transfer receipts, WeChat or Alipay transaction records, cash receipts, and withdrawal certificates; third, supporting evidence, such as collection letters, repayment commitments, witness statements, and detailed records of past financial transactions between the parties. For multiple transfers, it is recommended to prepare a delivery details table, listing the amounts and dates of each transfer and explaining the sources and purposes of the funds, to form a clear time-based delivery ledger.

Q3: How much does it cost to file a lawsuit?

The litigation fees shall be calculated in accordance with the "Measures for the Payment of Litigation Fees" (State Council Decree No. 481, implemented on April 1, 2007), with the amount of the subject matter as the base and accumulated in stages. For summary procedures, the fees shall be collected at half the normal rate and shall be borne by the losing party. For partial victories, the fees shall be shared proportionally. For applications for property preservation, additional preservation fees shall be paid, subject to a maximum limit. Lawyer's fees shall be determined through consultation between the law firm and the client, and shall be charged either as a percentage of the subject matter or on a per-case basis, without a unified government pricing. Before filing a lawsuit, it is recommended to calculate the subject matter, costs, and recovery expectations, and to rationally choose negotiation, mediation, or litigation.

Q4: How long does it take from the filing of a lawsuit to the issuance of a verdict?

When the facts are clear and the evidence is sufficient, the simple procedure will be concluded within three months, and the ordinary procedure within six months; if it requires public notice for service or the jurisdiction objection is established, the period will be extended accordingly. The pre-litigation mediation usually takes several weeks. If a mediation agreement is reached, the parties may apply for judicial confirmation, obtaining the same enforceability as a valid judgment. The time for enforcement will be calculated separately. Overall, successful cases will have results within a few months, while complex ones may take over a year. It is recommended to initiate the litigation as soon as possible within the three-year statute of limitations. For cases with large litigation amounts, both the trial and enforcement will take longer.

Q5: I didn't add a memo or the memo was unclear when I transferred the money. What should I do now?

Four steps to strengthen the case: 1. Confirm the loan amount and repayment plan with the other party via WeChat or text messages. A simple sentence like "When will you repay the **¥10,000** you borrowed?" may formalize the agreement. 2. Export the electronic transfer receipts and transaction records, labeling each payment's purpose. 3. Send a written demand for repayment and retain proof of delivery. 4. Negotiate to supplement the loan agreement or repayment agreement, clarifying the original loan facts. If the other party refuses to confirm the loan and the amount is significant, hire a lawyer to sue and apply for asset preservation as soon as possible. During communication, pay attention to leaving a record of your words to avoid the other party later claiming that the funds have already been repaid.

The above answer is based on the judicial practice in the Beijing area. The judicial interpretation in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Legal services for creditor-debtor disputes·Attorney Zhu Guiying·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In the event of a dispute, please consult a practicing lawyer in a timely manner.