vide advice, but can not serve as a viable project a decisive basis. Strategy and internal needs of a variety of factors to consider is very important. [Paper Net Www.LunWenNet.Com]
Second, our analysis of the financing environment for SMEs
Enterprise is in a certain environment, a variety of economic resources, the organic collection. Business operations to adapt and understand the requirements of environmental change, to be invincible. Enterprises are faced with an environment is present in the surrounding businesses, affecting business survival and development of various objective factors and forces of the general, it is the basis for corporate financing choices. At the moment, the status quo of China's financing environment for SMEs mainly in the following areas:
(A) From the situation of SMEs in view of their own
China's SME business management and technical levels are relatively low, a lack of effective internal supervision and control mechanisms, such a result is caused by inefficient use of funds, the risk is relatively large. Thus, banks and other financial institutions and development of SME business confidence is low, so it will not easily borrow funds to SMEs.
(B) from banks and other financial institutions operating principles to consider
Banks and other financial institutions pay attention to fund the operation of \safety, liquidity\in practice, banks and other financial institutions to give customers a prerequisite for the loan is to ask customers to provide effective guarantees for SMEs with limited self-financing due to unable to provide effective security, while for SMEs operating risks, the third person in normal circumstances would not provide guarantees for the debt of small and medium enterprises.
Since it is impossible to provide full and effective guarantees, banks and other financial institutions will not give loans to small and medium enterprises.
(C) from the country's industrial policies and economic policies are concerned
Lack of government support for SMEs, SME financing difficulties also contributed to an important reason. China for SMEs, although there are a number of supportive policies, such as \People's Republic of China Township Enterprise Law,\which also stipulates that \state to use the credit means, to encourage and support the development of township and village enterprises\\governments above the county level in accordance with relevant state regulations, you can the establishment of rural enterprise development fund \township enterprise development fund dedicated to support the development of township enterprises \ etc., but because of the lack of an effective system to protect, these provisions are difficult to implement.
(D) from the view of China's financial control
Between enterprises can not borrow each other to some extent also increased the difficulty of financing for SMEs. Based on our current law, among the citizens, businesses and citizen, business or civic and financial institutions can occur between the legitimate lending between enterprises and between enterprises, however, been regarded as illegal loan lending relationships are not by law允许. In this way, for SMEs, he would lose a means of financing, intangible into the financing of SMEs has also increased the difficulty.
Third, small and medium enterprises should develop specific strategies and reasonable financing
Therefore, at this stage of China's SME financing environment for SMEs in terms of financing of adverse circumstances, the financing of SMEs in the development of specific strategies should pay attention to the following aspects:
(A) the amount of funding the pursuit of rationality
Right to shares of companies on behalf of large enterprises in terms of financing aimed at achieving optimal capital structure, namely, the pursuit of cost of capital, the minimum and maximum business value; while for SMEs is concerned, the purpose of financing directly to ensure that the necessary production and operation of funds. Lack of funds will affect the development of production, but excess can lead to the use of funds of funds, diminish the effect, resulting in a waste. As the SME financing is not easy, so operators are more relaxed in the face of the funding environment, they often accuse me of \Xin point soldiers, the more the better\error. However, if the money raised is unreasonable or not with the real needs, then a good thing becomes a bad thing, companies hand, may carry a heavy debt burden, further affect the financing capability and profitability. Therefore, the business community during the beginning of financing decision, according to the needs of enterprises for capital, corporate finance their own actual conditions and the ease and cost of decision-making circumstances, what one can determine the size of corporate finance and reasonable.
(B) the pursuit of effectiveness of the use of funds
The financing channels for SMEs and large enterprises do not like the way there is a big choice, but that does not mean that SMEs can only be \On the contrary, due to weak risk-resisting ability of SMEs, as well as funding difficulties, but also should each fund to make good trade-off, considering the operating needs and capital costs, financing risk and investment income, and many other factors, must be the source of funds and to invest in combined analysis of the
cost of capital rate of return on investment the relationship between the strings to avoid making mistakes .
(C) the pursuit of the ratio of capital structure
The use of funds for SMEs decide the type and quantity of funding. We know that the total assets of enterprises and non-current assets by current assets of two parts. Current assets are divided into two distinct behavior: First, their number changes with fluctuations in production and management of liquid assets, namely, the so-called transient liquid assets; 2 is similar to the level of fixed assets, as long-term stability of liquid assets, namely, The so-called permanent current assets. According to the structure of the matching principle, small and medium enterprises for fixed assets and permanent current assets on the financial resources to the financing of medium and long term financing is appropriate; due to seasonal, cyclical and random factors contribute to changes in business activities, the funds required are mainly the financing of short-term financing is appropriate. Emphasizes financing and investment in the capital structure ratio on the relationship between pairs of small and medium enterprises is particularly important.
(D) capital operation, in the pursuit of incremental funding at the same time pay more attention to financing of stock
Incremental funding means a quantitative increase in the total occupation of the amount of funds to meet the production and operation needs; stock financing is defined as the total occupied without increasing the amount of funds under the premise of the structure by adjusting the amount of funds used to accelerate capital turnover, and try to avoid unreasonable the use of funds to improve the use of funds effects units to meet the business needs of the expanding production and operation. Increment financing and the stock of the close combination of funding also reflects the financing of SMEs and investment activities, the inherent connection between the stock of financing because it is actually a kind of utilization of
capital and it belongs to the scope of investment activities. For example, companies would be the timely use of idle equipment, rent, sell transfer the form of \ventory financing\it will not prevent losses and capital backlog, but also help improve long-term capital mobility, relieve pressure on the financing too heavy .
(E) sources of funding, the pursuit of credibility to win
Take the initiative to maintain good relations with financial institutions to make it understand the business and see great prospects for companies willing to support the development of enterprises, which every successful SME operators who are compulsory lesson. Including its two aspects: one is the choice of financial institutions, should be chosen career and growth of SMEs in the future for their interest and willingness to invest in financial institutions; can provide business guidance to financial institutions; branches and more convenient transactions of financial institutions; well-funded, and the low cost of funds of financial institutions; staff quality, professional ethics sound financial institutions. The other hand, cooperation between SMEs to take the initiative to communicate with financial institutions, corporate business policy, development plans, financial position, indicating the difficulties encountered in order to win the performance and credibility of financial institutions, trust and support, rather than a variety of illegal or improper means of taking money.
(Vi) financing, select the appropriate size of the enterprise itself, the strength and the stage of
Finance income and costs on a comparison that really necessary financing, we need to consider what kind of financing options. In the choice of financing, usually on their own to consider the size, strength, strong or weak, and corporate stage of development, combined with the characteristics of the different means of financing, select the appropriate means of financing of this enterprise development, for example, in the early days of SMEs , its financing methods you can choos