"Financing" is a financial term. In a narrow sense, it is the behavior and process of raising funds for an enterprise. Broadly speaking, financing is also called finance, which is the financing of monetary funds. The parties involved raise or lend funds in the financial market through various methods.

The "New Palgrave Dictionary of Economics" explains financing as: Financing refers to monetary transaction methods used to pay purchase prices exceeding cash, or methods used to raise funds to acquire assets. monetary means.

Judging from the current situation of modern economic development, enterprises need to have a deeper and more comprehensive understanding of financial knowledge, financial institutions, and financial markets than ever before, because the development of enterprises cannot be separated from the support of finance. , companies must deal with.

Extended information:

Methods of corporate financing:

1. Bank:

The first thing you think of when you need financing It is a bank, and bank loans are known as the "reservoir" for entrepreneurial financing. Because banks have strong financial resources and most of them have government backgrounds, they have a strong "mass base."

2. Financing platform:

Due to the difficulty of financing from banks, third-party financing platforms are a good choice for financiers. For example, the largest third-party financing platform in China is the Investment and Financing Industry Provides relatively professional investment and financing information services.

3. Credit card:

Credit card With the innovation of commercial banking business, settlement methods are becoming increasingly electronic. Credit card, an electronic currency, is not only fashionable, but also useful for those who are engaged in business. When you are in urgent need of cash flow, it is also feasible to obtain certain funds through credit cards.

4. Policy pledge:

Does the insurance company "lend" money to the insurer by pledging the policy? Many people may express surprise, but this business has indeed emerged. If the policyholder is in financial difficulty or is in urgent need of cash flow, he or she can pledge his policy to the insurance company and receive a loan from the insurance company in accordance with relevant regulations and proportions.

5. Pawn shop:

Pawn may be the most vital industry from ancient times to the present. Obtaining funds through pawn shops has gradually become known to the people. Gold, jewelry, home appliances, real estate, motor vehicles, etc. can be pawned, and securities can be used as pledge.

6. Entrusted loan:

Entrusted loan is also a way to solve personal financial needs. To put it simply, the provider of funds lends funds to the demander through a commercial bank, and the borrower returns the principal and interest to the other party's account opened in the bank on time. The interest rate is 30% higher than the loan interest rate of the People's Bank of China for the same period, as specified by By mutual agreement.

Baidu Encyclopedia - Financing