Financing is an enterprise's fund-raising behavior and process, which means that the company, according to its own production and operation situation and the needs of the company's future operation and development, adopts certain ways to raise funds from investors and creditors of the company through certain channels and organize the supply of funds to ensure the company's normal production needs and management activities.

Common financing methods:

1. Bank loans

Banks are the most important financing channels for enterprises. According to the nature of funds, it is divided into three categories: working capital loans, fixed assets loans and special loans. Special loans usually have specific purposes, and their loan interest rates are generally favorable. Loans are divided into credit loans, secured loans and discounted bills.

2. Stock financing

Stocks are permanent, have no maturity date, do not need to be returned, and have no pressure to repay the principal and interest, so the risk of financing is small.

The stock market can promote enterprises to change their operating mechanism, and truly become a legal entity and market competition subject with self-management, self-financing, self-development and self-restraint. At the same time, the stock market provides a broad stage for asset reorganization, optimizes the organizational structure of enterprises and improves the integration ability of enterprises.

3. Bond financing

Corporate bonds, also known as corporate bonds, are securities issued by enterprises in accordance with legal procedures and agreed to repay the principal and interest within a certain period of time, indicating that there is a creditor-debtor relationship between the issuing enterprises and investors.

bondholders do not participate in the operation and management of the enterprise, but have the right to recover the agreed principal and interest on schedule. In the bankruptcy liquidation of an enterprise, creditors have priority over shareholders to claim the remaining property of the enterprise. Corporate bonds, like stocks, belong to securities and can be freely transferred.

4. financial leasing

financial leasing refers to the financing method in which the lessor purchases the leased property from the supplier according to the lessee's choice of the supplier and the leased property, and provides it to the lessee for use, and the lessee pays the rent in installments within the contract or the time limit stipulated in the contract.

5. Overseas financing

The overseas financing methods available to enterprises include loans from international commercial banks, loans from international financial institutions, and bonds and stocks financing business of enterprises in major overseas capital markets.

6. Pawning financing

Pawning is a kind of financing method that takes physical objects as collateral and obtains temporary loans in the form of ownership transfer of physical objects. Compared with bank loans, pawn loans have high cost and small loan scale, but pawn also has incomparable advantages over bank loans. Extended information

1. Financing channels:

1. Banks

When you need financing, you must first think of banks. Bank loans are known as the "reservoir" for venture financing. Because banks are rich in financial resources and most of them have government background, they have a "mass base".

2. Financing platform

Because it is difficult to obtain financing from banks, the third-party financing platform is a good choice for financiers. For example, the investment and financing community, the largest third-party financing platform in China, provides professional investment and financing information services.

3. Credit card

With the innovation of commercial banking, the settlement method of credit card is becoming more and more electronic. Credit card is not only fashionable, but also feasible for people engaged in business to obtain certain funds through credit card when they are in urgent need of turnover.

4. Policy pledge

Does the insurance company "lend" money to the insurer? Many people may be surprised, however, this business has indeed appeared. If the applicant is in financial difficulties or in urgent need of capital turnover, he can pledge his policy to the insurance company and receive loans from the insurance company according to relevant regulations and proportions.

5. Pawnshop

Pawnshop may be the most vital industry since ancient times. Obtaining funds through pawn shops has gradually become familiar to the people. Gold, jewelry, home appliances, real estate, motor vehicles, etc. can all be pawned, and securities can be used as pledges.

6. Entrusted loan

Entrusted loan is also a way to solve personal capital needs. To put it simply, the provider of funds lends money to the demander through commercial banks, and the borrower returns the principal and interest to the account opened by the other party in the bank on time, and the interest rate rises by 31% on the basis of the loan interest rate of the People's Bank of China for the same period, which is determined by both parties.

Significance of financing:

Capital is the first and continuous driving force of enterprise's economic activities. Whether an enterprise can obtain a stable source of funds and raise the funds needed by the combination of production factors in time and in full is very important for its operation and development. However, the biggest obstacle encountered in the development of private enterprises is the financing dilemma.

China's private enterprises are mainly labor-intensive and low-tech industries, with manufacturing, wholesale, retail and catering alone accounting for 75% of private enterprises. The vast majority of private enterprises, whether in their initial stage or development stage, mainly rely on self-accumulation and self-financing to develop.

However, due to the low management level, small production scale and weak profitability of these enterprises, their further development is still restricted by a serious shortage of funds.

Private enterprises have a huge demand for funds. However, the loans from banks are less than 2% of the total bank loans. Private enterprises financing by issuing stocks only account for about 9% of listed companies in China's securities market, not including those who buy shares of other listed companies at a higher price and go public in a curve;

has almost no share in the bond market. The financing difficulties of private enterprises are highlighted by the difficulties of small and medium-sized enterprises, central and western regions and small towns, which is precisely an important link in our economic development that needs to increase support.

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