One of the external reasons

1, changes in market demand conditions, resulting in stagnation of enterprise products, production slippage

2, the person in charge of the enterprise enterprise career, sense of responsibility is not strong, the financial system is not strict, the accounts management is chaotic. In the bankruptcy of the enterprise, to varying degrees, there are frequent replacement of financial personnel, only a change of people do not hand over the accounts, accounts without continuity; poor implementation of the financial system, income and expenditure can not do the day and month and write off the accounts and many other issues.

3, a serious shortage of liquidity, the enterprise can not operate normally. Especially when the country's tightening of the money, the enterprise can not borrow funds from the bank, and no other channels of capital financing, resulting in the enterprise can not be normal production, and then the good equipment can not play to its advantage. The assets of the enterprise can not effectively generate profits, reducing the utilization rate of resources.

4, business managers make poor decisions. In the absence of serious feasibility studies, blindly expanding reproduction or new project investment, resulting in an excessive burden on business operations, so that the original business situation is not good for the enterprise to add insult to injury.

Two, the internal reasons

1, debt management. Indebtedness is the enterprise through legal means, paid use of external funds for production, operation, management and other activities to obtain profits, the purpose of which is to expand the scale of the enterprise, to promote the further development of the enterprise, and not just for the survival of the enterprise. Reasonable fundraising, the main function of the enterprise blood financial management, is a prerequisite for enterprises to maintain normal operation, is an important element of modern financial management. Liability management is a double-edged sword, the use of good, can enable enterprises to quickly raise the funds needed to reduce operating costs, reduce tax expenditures, access to financial leverage benefits, etc.; the use of bad, it will bring disaster to the enterprise. However, if the enterprise on the number of liabilities, limits, channels and ways to choose unreasonable, as well as improper use of debt funds, will also bring a lot of negative impact on the enterprise. Risks arising from excessive debt size. Because debt capital not only to pay fixed interest, but also to repay the principal according to the agreed terms, no financial flexibility to speak of, on the enterprise is a fixed financial burden, once the business risk and can not repay the debt due, the enterprise will face a larger financial lead to bankruptcy.

2, financial risk. Risk is a concept associated with loss, is an uncertainty or possible loss. Financial risk is the additional risk borne by the sovereign capital in the case of uncertainty of future returns arising from the use of debt capital by the enterprise. If the enterprise business situation is good, making the enterprise investment return rate is greater than the interest rate on debt, then get financial leverage benefit, if the enterprise business situation is poor, making the enterprise investment return rate is less than the interest rate on debt, then get financial leverage loss, or even lead to bankruptcy, this uncertainty is the enterprise use of debt to bear the financial risk.