Introduction: financing refers to the behavior and process of an enterprise to raise funds. Is also the company according to its production operating conditions, possess the financial situation, as well as the company for future business development needs, through scientific prediction and decision by a certain way, from certain channels to investors and creditors of the company to raise funds, fund supply, to ensure the company's normal production needs, management activities need financial behavior.
Finance now the biggest problem is that small and medium-sized enterprises in China's economic development, there is no analysis of the restricting factors, can also be attributed as the external environment factors and the small and medium-sized enterprise own factor, analysis of constraints is prerequisite way to solve the problem.
What is the financing of small and medium-sized enterprises? Divided into two narrow and broad aspects
In a narrow sense, behavior and process of financing is a financing business. Is also the company according to its production operating conditions, possess the financial situation, as well as the company for future business development needs, through scientific prediction and decision by a certain way, from certain channels to investors and creditors of the company to raise funds, fund supply, to ensure the company's normal production needs, management activities need financial behavior. Motivation for companies to raise funds should follow certain principles, through certain channels and certain way to be. We usually say, there are three large enterprises to raise funds to enterprises to expand, enterprises should pay and mixed motives (debt expansion and motivation mixed together).
Broadly speaking, the financing is also called financial intermediation is the money funds, the parties to the financial markets by raising funds or loans to the behavior in various ways. From the perspective of modern economic development situation, as enterprises need more than ever deeper, comprehensive understanding of financial knowledge and understanding of financial institutions to understand the financial markets, because of the enterprise's development is inseparable from the financial support, enterprises must deal with. If you do not understand financial knowledge, learn financial knowledge, as economic leading cadres are incompetent, as business leaders is also incompetent.
In the face of problems encountered in financing, there are temporary solutions
Because of the small and medium-sized enterprise's own characteristics, the problems of solvency is weak, financing small scale, financial regulatory differences, the lack of perfect corporate governance mechanism, small and medium-sized enterprises generally weak ability to resist risks. Therefore, the general lack of financial services solutions related to large financial institutions, mainly because the bank for risk control, set up complex risk control procedures, finally realize the income is generally low. The financing for small and medium enterprises are generally to obtain the needs of enterprise development funds through underground banks, private equity funds, security companies, investment companies and other.
China advocates the comprehensive utilization of government funding, technology loans, capital market, venture investment, issuing bonds and other means to strengthen the financial support for small and medium enterprises. There has not yet established perfect SME financing market.
If you want to learn more about the financing of small and medium-sized enterprise knowledge, editorial recommendation:
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