Using Enterprise'S Own Capital To Raise Funds

The internal capital of an enterprise is the most secure and secure source of financing for an enterprise.

It is the most flexible and the most advantageous one because it is the capital within the enterprise itself.

The biggest advantage of raising funds by means of self financing is that the funds can be completely controlled by themselves, and the cost of raising funds is the lowest. In addition to saving interest on deposit, the investment cost is low, so interest is not required to be paid.

The internal capital of an enterprise is a part of the capital that belongs to the enterprise but is not occupied or not occupied by the economy.

Therefore, the use of funds within the enterprise itself not only includes the idle funds of enterprises, special funds, but also the part of funds that need to be pferred from low efficiency to high efficiency.

Usually, internal funds can be divided into the following ways.

In the first place, the profit margin of the enterprise is the net income which is retained by the enterprise after the tax is paid.

The amount of retained profits depends on the proportion of the state's tax system and the prescribed profit margin.

In the strict sense, the source of funds for enterprises' internal financing should be provided by enterprises after capital appreciation through production and operation activities, that is to say, corporate profits.

Capitalization of profits is the essence of internal financing.

Two, depreciation fund, depreciation fund of fixed assets, is a major source of funds within the enterprise.

The depreciation fund is in principle the funds used to ensure that the fixed assets are simply reproduced by the production of investment, but some of them can also be used as a need to expand reproduction.

Three, the sale of idle assets of enterprises, the sale of idle assets of enterprises, as a way of internal financing, refers to the liquidation of a certain department or part of the assets of an enterprise to raise funds needed.

Selling the enterprise idle or precipitating assets does not mean that the enterprise loses power or fails to operate. It is a process of optimizing and reorganizing the enterprise resources. By selling off surplus or inefficient assets, enterprises can raise the necessary funds to engage in other production and operation activities, and at the same time, can change the business structure and direction, revitalize the stock assets, and improve the efficiency of capital operation.

Four, enterprise accounts receivable accounts receivable accounts receivable, including receivables to be sold on installment receivables, goods recovered in the next business cycle, receivables sold to Affiliated Companies, etc.

Accounts receivable are the creditor's rights of enterprises and belong to internal funds of enterprises.

The use of accounts receivable financing refers to the use of enterprise accounts receivable as collateral to obtain bank loans, or sell them to obtain the funds needed by enterprises.

The use of accounts receivable financing is a short-term fund raising method, which generally does not bring long-term adverse effects to the operation of enterprises.

However, when enterprises use accounts receivable to raise funds, enterprises should seize the right time and pay attention to the following points when choosing the opportunity: enterprises have one or several reliable accounts receivable for sale; short-term loan interest rate is too high, while savings deposit interest is relatively low; the financial condition of the enterprise is good, but because of other reasons, it is difficult to obtain loans; the enterprise lacks funds and is in urgent need of production and operation of working capital; and the enterprise wants to maintain customer relationship with the defaulted accounts receivable enterprises.

Five, it is difficult to define the funds that need to be pferred from low efficiency occupancy to high efficiency occupancy, which is difficult to define in real life, including investment in production with serious losses or low profits, and investment capital such as securities and real estate with low investment efficiency.

Based on the analysis of their own business status, the enterprises should pfer and reorganize assets with low internal rate of return on the basis of a comparative analysis with the same industry standards, so that the inefficient capital occupation will flow to efficient capital, so as to revitalized the vitality and vitality of capital.

However, the most important thing is that the amount of financing will be restricted by the strength of the enterprise itself. Generally speaking, the amount of funds within the enterprise is limited. Even if the relatively large number of large companies and large enterprises are large, it is often impossible for them to rely solely on their own fund-raising because of the huge amount of funds they need.

Especially in the early days of enterprises, too much reliance on their own funds is often the most unrealistic, because most enterprises do not have such a solid supply of funds.