SME financing bill reference model article 1
Financing analysis of small and medium-sized enterprises
Abstract: In China, the development of small and medium-sized enterprises is influenced by many factors, among which financing difficulty has become the main bottleneck restricting the development of small and medium-sized enterprises. There are many reasons for this problem, but the financing structure can not be ignored. Firstly, this paper summarizes the financing structure and enterprise performance theory, analyzes the present situation of financing structure of small and medium-sized enterprises in China, and puts forward financing strategies that small and medium-sized enterprises in China should adopt in order to optimize financing structure and improve enterprise performance.
Keywords: small and medium-sized enterprises; Financing; Current situation; Strategy;
At present, the total financing channels of small and medium-sized enterprises in China are narrow, and their current development mainly depends on their own internal accumulation, that is, the financing of small and medium-sized enterprises presents the characteristics of large internal financing ratio and small external financing ratio. This restricts the development of small and medium-sized enterprises to a great extent, and also affects the overall economic development of the country.
I. Overview of financing structure and operating performance of enterprises
(1) Overview of enterprise financing structure. Enterprise financing structure, also known as capital structure, is the division of enterprise capital structure from the perspective of financing methods, and refers to the proportion of endogenous financing and exogenous financing in the total financing of enterprises. Endogenous financing means that enterprises raise funds through internal accumulation; Exogenous financing refers to enterprises raising funds through bank loans and issuing stocks and bonds. The research on capital structure theory in China started late, and domestic scholars mainly focused on the summary and introduction of existing foreign capital structure theories, or conducted their own corresponding research on the basis of existing capital structure theories.
(2) Overview of business performance. Enterprise performance refers to the operating efficiency of enterprises and the performance of operators during a certain operating period. The operating efficiency of an enterprise is mainly manifested in its profitability, asset operation level, debt repayment ability and subsequent development ability. The performance of operators is mainly reflected in their achievements and contributions to the operation, growth and development of enterprises in the process of operating and managing enterprises.
Second, the financing structure analysis of small and medium-sized enterprises in China
Small and medium-sized enterprises are the concept of enterprise scale, which is relative to large enterprises. It is a dynamic and relative concept based on quantitative standards such as the number of employees, total assets of enterprises and operating income of enterprises. The definition of small and medium-sized enterprises is a vague concept, and it is difficult to give it an accurate definition in theory. At present, the international understanding of the characteristics of small and medium-sized enterprises is: "independent ownership, independent operation, there is no monopoly in the industry."
Characteristics of liquidity demand of small and medium-sized enterprises: short, frequent, fast and small. Is to get a loan from the bank, the loan approval procedures are cumbersome, the funds are not in place, the business opportunities are missed, and the purpose of short-term lending is lost; Moreover, the characteristics of small and medium-sized enterprises' loan risk, small capital demand and fast frequency also increase the management cost and risk of bank loans and affect the enthusiasm of bank loans.
Third, optimize the financing strategy of SMEs.
In view of the characteristics of the financing structure of small and medium-sized enterprises in China and referring to the practices of developed countries, when solving the financing problems of small and medium-sized enterprises, it is suggested to start from the following aspects:
1. Enterprises should improve their management quality and enhance their credit concept. To solve the financing problem of small and medium-sized enterprises, small and medium-sized enterprises should start from themselves, improve their internal strength, improve their internal governance structure and improve their internal management level, so as to improve financing conditions. Continuously improve the quality of small and medium-sized enterprises and promote the adjustment of their product structure. Strengthen the concept of credit, improve the consciousness of consciously repaying loans, and maintain a good relationship between banks and enterprises.
2. Establish and improve the credit guarantee system for SMEs. The establishment of credit guarantee mechanism for small and medium-sized enterprises can solve the worries of financing institutions about loans to small and medium-sized enterprises and solve the problem of mortgage and guarantee for small and medium-sized enterprises. Governments at all levels should set up small and medium-sized enterprise development funds, focusing on supporting credit guarantee and re-guarantee of small and medium-sized enterprises. Local governments and small and medium-sized enterprises can establish credit guarantee funds for small and medium-sized enterprises (the government provides most of the funds and enterprises contribute to the funds as members). Its goal is to provide credit guarantee for those small and medium-sized enterprises with good operating conditions and great development potential but lacking financial guarantee.
3. Cultivate small and medium-sized financial institutions. Small and medium-sized financial institutions specialize in serving small and medium-sized enterprises. Through long-term cooperation, small and medium-sized financial institutions have gradually increased their understanding of the operating conditions of small and medium-sized enterprises. This will help solve the problem of information asymmetry between small and medium-sized financial institutions and small and medium-sized enterprises. Small and medium financial institutions are more willing to provide financial services for small and medium-sized enterprises. Due to their lack of funds, they are unable to finance large enterprises, and objective conditions make it impossible for small and medium-sized financial institutions to cooperate with large and medium-sized enterprises for a long time. Secondly, the financing needs of small and medium-sized financial institutions are affordable. In the long-term and stable cooperation with small and medium-sized enterprises, the understanding of the operating conditions of small and medium-sized enterprises has been enhanced, which is helpful to solve the problem of information asymmetry between the two sides.
4. Improve the capital market and broaden the direct financing channels for SMEs. It is necessary to actively develop the capital market, improve the GEM market for SME financing as soon as possible, and select qualified small and medium-sized high-tech enterprises to enter the GEM securities market for financing. At the same time, actively promote the reform of the shareholding system of small and medium-sized enterprises, give full play to the financing function of the shareholding system, and adopt various forms such as reorganization, merger and alliance to absorb private capital, private capital and foreign capital to participate in shares. For small and medium-sized enterprises with certain holding power, they can transfer shares to foreign capital, and with clear property rights and clear responsibilities, they can raise funds in the stock market with the help of multiple investors to promote the continuous growth of the economic scale of small and medium-sized enterprises.
5. Promote the diversification of debt financing market. Developing financial leasing industry is an effective means of long-term financing for enterprises. Generally speaking, financial leasing has lower cost and less risk for enterprises than loans, and its way is flexible and convenient, and it is less restricted than long-term loans and the issuance of stocks and bonds. However, China is still lacking in this respect, the scale of leasing companies is very small, and the financial leverage of financial leasing has not been fully exerted. Another thing is to promote the innovation of financing, and consider lowering the threshold for issuing corporate bonds. Establishing a multi-level capital market, whether it is debt financing or equity financing, has the function of raising funds and diversifying risks for small and medium-sized enterprises. Among them, equity financing is more oriented and targeted.
To sum up, the lack of funds in the development of small and medium-sized enterprises is a common phenomenon today, and the problem of funds can often make an enterprise untenable in the tide of market economy and tend to die out. On the basis of constantly improving the financing system of small and medium-sized enterprises, recognizing the internal problems, grasping the external constraints and solving the financing difficulties of small and medium-sized enterprises will help them get out of the "bottleneck" and reverse the current difficult situation. At the same time, the financing structure of an enterprise plays an important role in its performance, especially the financing cost and risk. This is related to the efficiency of capital use and business risks of enterprises, and enterprises should optimize the financing structure to better improve their business performance. This requires enterprises to improve their own management system, promote enterprises to optimize financing structure, and promote the development and growth of enterprises.
References:
[1] Lin Yifu, Li Yongjun: Re-discussion on the development prospect of China's second-board market, Reform No.2, 20 12.
[2] Liao Yong: "Empirical Analysis of Capital Structure and Corporate Performance of Listed Companies in China", "Journal of Southwest University for Nationalities", 20 12, No.28.
[3] Wu Jianxiong: "SME financing and financial management", Beijing: China Financial Publishing House, 20 1 1 year.
[4] Contland: "Research on Financing Structure and Financing Strategy of SMEs", Beijing: China Financial and Economic Press, 20 13.
[5] Luo Danyang: Private Financing for SMEs, Beijing: China Financial Publishing House, 20 14.
Reference model of financing papers for small and medium-sized enterprises Part 2
On enterprise financing
Abstract: For enterprises, capital is the blood of enterprises, the direct driving force of economic activities, and the sustained driving force of enterprise development. A virtuous circle of enterprises can not only make full use of internal sources of funds, but also effectively integrate external funds. The financing process of an enterprise is also a process of resource allocation in the form of capital supply and demand. The amount of financing directly determines the survival and development of enterprises. Therefore, how to effectively carry out financing, how to choose financing methods, how to grasp the scale of financing and the use of various financing methods have become the research direction of enterprises.
Keywords: accumulation and development of enterprise financing funds
First, the problems existing in the process of enterprise financing
Financing is the foundation for the survival and development of enterprises. Raising funds for enterprises, whether from the external environment or from the internal development of enterprises, are facing various difficulties. Financing through domestic capital market is not mature in financing, and it is difficult for enterprises with poor projects and strength to solve problems through financing, such as narrow channels and lack of funds, which are all important problems in enterprise development. It is expensive to seek funds through foreign markets.
(A) financing channels are relatively single
After years of experience accumulation and continuous innovation, China has initially formed a diversified pattern of financing channels, but not all methods have certain conditions and strength. For example, the rapid development of the stock market allows some enterprises to use the opportunity of listing to raise funds and continuously improve capital accumulation. However, the threshold of listed companies is very high, and a considerable number of enterprises cannot enter the stock market, so they cannot use the stock market to raise funds, which makes these enterprises still rely too much on bank loans.
(B) There are hidden risks in financing intermediaries.
Banks are the most important financing intermediary for enterprises, and the securities market is the most important financing market for enterprises. They all play an important role in the financing process of enterprises. The stability of banks and securities markets has a great influence on the development of enterprises. If the risks of banking and securities break out, it will not only have a great impact on the financing of enterprises, but also cause great damage to the stability of the whole financial industry. In addition, there are risks in the stock market. Some enterprises "backdoor" listing and fraud in the stock market, resulting in a serious stock market bubble.
(3) The credit of financing enterprises is not high.
In order to better accumulate funds, enterprises try their best to broaden financing channels and attract a large amount of funds. However, some enterprises just think about the source and use of funds, especially those with loans as the main source of funds, but they have not thought about how to repay loans. Even individual enterprises never thought about repaying loans at the beginning of borrowing, and their rights and interests were not guaranteed, which greatly dampened investment confidence and led to shrinking loans. Enterprise's dishonesty in financing directly affects enterprise financing, resulting in social credit disorder, which is also not conducive to the long-term smooth financing channels of enterprises.
Second, the way of enterprise financing
Every enterprise will choose its own financing method according to its different nature, development direction and financing orientation, embody its own characteristics and give play to its own advantages, so as to better accumulate funds for the enterprise.
1. Credit: Most enterprises use credit to raise funds, which is not only the most popular way for enterprises, but also the most acceptable way for enterprises.
2. Securities: At present, many enterprises still raise funds by entering the securities market.
3. Issuing corporate bonds: most of them are used for the development of new projects of enterprises, as well as projects with high profitability and large capital demand.
4. Asset shareholding: SMEs can divide their net assets into shares according to the actual assets of the company, and raise funds through MBO (management shareholding), ESO (employee shareholding) and selling shares to specific shareholders, so as to realize the diversification of shares.
5. Financial leasing.
6. International Market Development Fund.
Third, how to carry out financing
(A) choose the appropriate financing methods
Every enterprise has its own characteristics, and different enterprises choose different financing methods, but each enterprise can find a suitable financing method in the process of development. Only in this way can we better realize the capital accumulation of enterprises.
However, the choice of financing methods of most enterprises has a certain degree of * * *, that is to say, it is often based on a certain financing method, such as bank loans or issuing securities, which is the problem of different financing methods of enterprises.
(B) improve the credit system
Perfecting the credit system is an important way for enterprises to continuously improve their financing ability. The reputation of financing enterprises plays a considerable role in the success of financing. Enterprises with good credit can create good conditions for the smooth financing of enterprises and obtain more funds for enterprises. At the same time, we can curb the accumulation of funds of untrustworthy enterprises by improving credit and establish our own position. While continuously improving the credit rating of enterprises, it is also a powerful blow to competitors and realizes the financing activities of enterprises more smoothly.
(C) appropriately reduce financing costs
Financing cost generally refers to all expenses incurred by an enterprise to raise funds, mainly including: organization and management expenses in the financing process, capital occupation expenses after financing and other expenses paid in the financing process. This part of the cost plays a decisive role in the financing efficiency of enterprises, and it is also the key for enterprises to choose financing methods. Therefore, it is self-evident how to control the financing cost in actual financing. However, due to the influence of various factors, it is difficult to control in the specific application, which requires enterprises to analyze the specific situation, so as to get a way suitable for their own enterprises.
(4) Effectively broaden financing channels.
In terms of financing channels, it is necessary to develop in many ways, not limited to one financing method, so that enterprises can adapt to the market as soon as possible, establish a financing system in the market and find financing opportunities from the market. Through various efforts, we will strive to establish good relations with trust and investment companies, financial leasing companies and other financing service financing institutions, explore financing channels, and dig out more financing methods suitable for the development of our own enterprises.
(v) Support and control financing opportunities.
The so-called financing opportunity refers to a favorable financing environment and opportunity composed of a series of factors conducive to enterprise financing. For enterprises, the selection process of financing opportunities is a process of continuous development and maturity. Only by constantly exploring and innovating and increasing financing opportunities for enterprises can enterprises better accumulate funds in their development and lay a solid foundation for better development in the future. In grasping the opportunity, we should correctly handle the relationship between the internal financing environment and the external financing environment, give full play to the initiative and foresight of enterprises, timely respond to the impact of various changes on enterprise financing, rationally analyze various situations, accurately judge the development trend, and seek the best financing opportunity.
(6) Learn from foreign financing models.
At present, there are two main modes of enterprise financing in developed countries: one is the mode of securities financing represented by Britain and the United States, and the other is the mode of bank loan financing represented by Japan, South Korea and other East Asian countries and Germany. Through the comparative study of Anglo-American mode, Japanese main bank mode and German universal bank financing mode, we can learn from foreign practices and consider China's actual situation, and gradually explore the financing mode suitable for Chinese enterprises, and integrate with foreign advanced concepts to improve borrowing capacity in an all-round way and open up new ways for enterprises to better accumulate funds.
conclusion
Capital is the foundation of enterprise's survival and development. No matter any industry or enterprise, it is impossible to exist independently without capital. The acquisition and accumulation of capital is the basis of sustainable operation of enterprises.
By accumulating funds, we will continuously expand the capital strength of enterprises, increase the chips for the enhancement of their payment ability and development potential, and expand the scale and profitability of enterprises, thus accelerating the development of enterprises. At the same time, improve the reputation of enterprises, establish a good image of enterprises, and constantly improve the share of enterprises in the market. While upgrading ourselves, we should use our strong competitive capital to weaken our competitors and make full use of economies of scale to improve the competitiveness of enterprises in the market.
Therefore, how to carry out financing reasonably and effectively has become the key to the survival and development of enterprises. We should consider how to choose and make decisions and make reasonable and thorough plans. When making decisions, enterprises must choose the financing mode that is most conducive to improving competitiveness, expanding income and accumulating funds, which is the key to enterprise financing.
References:
1, Wang Chenggang, "Problems and Countermeasures in Financing of Small and Medium-sized Enterprises in China" Coastal and Science and Technology
2. Fang Zhu's Corporate Financing in China: Institutional Change and Behavior Analysis, Peking University Publishing House.
3. Zheng Wenping and Luo Zhongwei, "Comparison and Reference of Financial Systems of American, Japanese and German Enterprises" China Industrial Economy
4. Hu's discussion on the financing of small and medium-sized enterprises
5. Ling's financial research on China's financing system reform and stock market positioning.
6. Li Weining Investment and Financing Management Shenzhen Haitian Publishing House
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