Six Elements Of SME Financing Strategy

Enlarging the scale and occupying the market is the main purpose of the financing of enterprises. We should consider what products will be used to expand and increase sales, and how much market share will be brought to the enterprises.

At the same time, we must consider whether we can win other funds, enter the capital market, use various funds and resources, and make decisions in two markets to achieve complementary effects.

Why do we finance?

What is the total cost and total cost of financing?

Only when total income is greater than total cost can financing be made.

Financing costs range from small to large: financial allocation, commercial credit, internal fund-raising, bank loans, issuing bonds and issuing stocks.

Two, excessive financing, increasing financing costs, increasing liabilities, repaying burdens, and increasing risks (business and credit risks).

Inadequate financing, business impact, lack of product strength, relatively increased costs.

On the scale of financing, we should remember eight words: do what we can and make comprehensive decisions.

Three, timing is the key to business, development and development from the perspective of the enterprise.

From the outside of the enterprise, we should seize the good opportunity for the banks and other financing institutions to introduce the latest financial products and improve the financing environment of the enterprises.

Four, controlling the financing of the company will result in the loss of ownership and control rights, resulting in profit diversion and damage to the interests of enterprises.

Such as: mortgage of real estate certificate, patent technology disclosure, investment discount, exposure of important customers from upstream and downstream, and clarity of internal privacy of enterprises will affect the stability and development of enterprises.

Under the premise of guaranteeing considerable control over enterprises, the company should achieve both the purpose of financing and the pfer of ownership in an orderly manner.

The main purpose of enterprise financing is to expand the size of the market and occupy the market. It is necessary to consider the large market share and the overall interests of the enterprise with the expansion and sale of which products are used.

At the same time, we must consider whether we can win other funds, enter the capital market, use various funds and resources, and make decisions in two markets to achieve complementary effects.

Six, risk 1, the choice of less risky financing and financial products; 2, the use of risk control financing means; 3, when the known risk is large enough, there should be greater financing income as a guarantee; 4, the risk of financing projects should have a clear and accurate cognition.

The bank executives and investors believe that the more you know about project risks, the more you have the awareness and ability to guard against risks.