The asset securitization financing method is an important financial innovation originated in the United States in the 1970s. Due to the ingenious conception and flexible method of the asset securitization financing method, in just over thirty years, There has been unprecedented development. Next, please enjoy the financing methods in life that I have collected and organized online. Financing methods in life
(1) Financial leasing
Small and medium-sized enterprise financial leasing means that the lessor purchases from the supplier based on the lessee’s choice of suppliers and leased items. The leased property is provided to the lessee for use, and the lessee pays the rent in installments within the period specified in the contract or contract.
If you want to obtain financial leasing for small and medium-sized enterprises, the project conditions of the enterprise itself are very important, because financial leasing focuses on examining the future cash flow of the project. Therefore, the success of financial leasing for small and medium-sized enterprises mainly cares about the leasing project itself. benefits, rather than the overall benefits of the enterprise. In addition, the credit of the company is also very important. Just like bank lending, good credit is the basis for the next loan.
(2) Bank acceptance bill
In order to conclude a transaction, both parties to the financing of small and medium-sized enterprises can apply to the bank for the issuance of a bank acceptance bill. After review and approval, the bank will officially accept the bank acceptance contract and accept the bill. The bank must sign or seal the acceptance bill indicating acceptance. In this way, a bank acceptance bill is called a bank acceptance bill. Specifically, a bank acceptance bill is a bank guarantee for the buyer. The seller does not have to worry about not receiving the payment, because the bank will definitely pay the payment due to the buyer's guarantee when it expires.
The advantage of bank acceptance bill financing for SMEs is that enterprises can achieve short, frequent and fast SME financing, which can reduce corporate financial costs.
(3) Real estate mortgage
Real estate mortgage SME financing is currently the most commonly used financing method for SMEs on the market. When financing small and medium-sized enterprises with real estate mortgages, enterprises must pay attention to China's legal provisions on real estate mortgages, such as the "Guarantee Law", "Urban Real Estate Management Law", etc., to avoid being deceived.
(4) Equity transfer
Equity transfer SME financing means that SMEs obtain funds by transferring part of the company's equity to meet the company's funding needs. Small and medium-sized enterprises actually want to introduce new partners when selling equity for small and medium-sized enterprise financing. The process of attracting direct investment. Therefore, the selection of objects for equity transfer must be very careful and thorough, otherwise the company may lose control and be in a passive situation. It is recommended that entrepreneurs consult corporate law professionals before carrying out equity transfer and proceed with caution.
(5) Providing guarantees
The main advantage of providing guarantees for small and medium-sized enterprise financing is that it can seize market opportunities, reduce the pressure on corporate funds, and improve cash flow. This kind of trade financing for small and medium-sized enterprises is suitable for small and medium-sized enterprises that have opened a letter of credit in the bank, imported goods have arrived at the port, but the documents have not arrived, and are eager to pick up the goods. Small and medium-sized enterprise financing companies that carry out delivery guarantee must pay attention to the fact that once the delivery guarantee procedure is completed, no matter whether there are any discrepancies in the documents received, the enterprise cannot refuse to pay or refuse to accept.
(6) International market development funds
This part of the funds mainly comes from the Central Foreign Trade Development Fund. If small and medium-sized enterprises want to raise funds through this channel, they should note that the main contents supported by market development funds are: overseas exhibitions, quality management systems, environmental management systems, software export enterprises and various product certifications, international market promotions, and the development of emerging markets. Markets, training and seminars, overseas bidding, etc., and priority support will be given to expansion activities in emerging international markets such as Latin America, Africa, the Middle East, Eastern Europe and Southeast Asia.
(7) Internet Financial Platform
Compared with other investment methods, the Aizou Internet Financial Platform conducts qualification reviews and on-site inspections of companies applying for financing, and selects companies with investment value. High-quality projects are disclosed to investors on investment and financing information docking platform websites such as the investment and financing industry; and an online investment trading platform is provided to generate legally binding loan contracts for investors in real time; the company's project operations are monitored and risk guarantee funds are managed. Ensure the safety of investors’ funds. The financing method created by Ai Investment is to let professional institutions do professional things.
On the one hand, it takes advantage of the publicity and openness of the Internet, and at the same time, it combines the professionalism of traditional financial institutions in risk control, credit review, etc. As an investment and financing platform, Ai Investment is in the middle position. On both sides are investors and demanders with financing needs, but it also cooperates closely with third-party guarantee institutions. With many years of professional risk control capabilities and funds exceeding 100 million, they provide professional guarantees for users’ investments. At the same time, it also cooperates with credit rating agencies and asset management institutions to provide users with comprehensive interpretations of investment information and provide guarantees for the follow-up of asset disposal. The choice of financing methods in life
1. Follow the pecking order theory of first "internal financing" and then "external financing"
According to the "pecking order theory" in modern capital structure theory, The first choice for enterprise financing is the enterprise's internal funds, which mainly refers to the after-tax profits retained by the enterprise. When internal financing is insufficient, external financing is used. When it comes to external financing, low-risk types of debt financing are chosen first, and then new stocks are issued. There are three reasons for choosing financing methods in this order:
(1) Internal financing costs are relatively low, risks are minimal, and use is flexible and autonomous. Enterprises that use internal financing as their main financing method can effectively control financial risks and maintain a sound financial position.
(2) The increase in debt ratio, especially high-risk debt ratio, will increase the financial risk and bankruptcy risk of enterprises.
(3) The equity financing preference of enterprises can easily lead to a reduction in the efficiency of the use of funds. Some companies invest the equity funds they raise in projects that they are not familiar with and have low investment returns. Some listed companies even invest them at will. Changing the use of funds in its prospectus does not guarantee the profitability of the use of funds after the change of use. In the absence of a significant improvement in the company's operating performance, new equity financing will dilute the company's operating performance, reduce earnings per share, and harm the interests of investors. In addition, as my country's capital market system continues to improve, the threshold for corporate equity refinancing will increase and refinancing costs will increase.
The financing sequence of most listed companies in my country is to give the issuance of stocks the highest priority, followed by debt financing, and finally internal financing. This financing sequence can easily lead to inefficient use of funds, weaken financial leverage, and promote a preference for equity financing.
2. Consider the actual situation and choose appropriate financing methods
Enterprises should choose more appropriate financing based on their own operating and financial conditions, as well as changes in macroeconomic policies. Way.
(1) Consider the impact of the economic environment. The economic environment refers to the macroeconomic conditions in which enterprises conduct financial activities. During periods of rapid economic growth, in order to keep up with the pace of economic growth, enterprises need to raise funds to increase fixed assets, inventories, personnel, etc. Enterprises can generally issue additional stocks , issuing bonds or borrowing from banks and other financing methods to obtain the required funds. When economic growth begins to slow down, companies' demand for funds decreases. Generally, the scale of debt financing should be gradually reduced and debt financing methods should be used as little as possible.
(2) Consider the capital cost of financing methods. Capital costs refer to the costs incurred by an enterprise to raise and use funds. The lower the financing cost, the better the financing returns. Since different financing methods have different capital costs, in order to obtain the required funds at a lower financing cost, companies should naturally analyze and compare the capital costs of various financing methods and try to choose financing methods and financing combinations with low capital costs.
(3) Consider the risks of financing methods. The risks of different financing methods are different. Generally speaking, debt financing methods require regular repayment of principal and interest. Therefore, there may be a risk of inability to repay, and the financing risk is higher. The equity financing method has low financing risk because there is no risk of repayment of principal and interest. If a company adopts debt financing, due to the effect of financial leverage, once the company's profit before interest and tax drops, the profit after tax and earnings per share will drop faster, which will bring financial risks to the company and may even lead to bankruptcy. risk. The successive bankruptcies of several major U.S. investment banks are related to the abuse of financial leverage and the disregard for risk control in financing methods. Therefore, enterprises must choose appropriate financing methods based on their own specific circumstances and considering the risk level of the financing method.
(4) Consider the profitability and development prospects of the enterprise. Generally speaking, the stronger the profitability of a company, the better its financial situation, the stronger its liquidity, and its good development prospects, the more capable it is of taking financial risks. When a company's investment profit rate is greater than the interest rate on debt funds, the more liabilities there are, the higher the company's return on net assets will be, which is more beneficial to the company's development and equity capital owners. Therefore, when a company is in a period of rising profitability and good development prospects, debt financing is a good choice. When a company's profitability continues to decline, its financial situation worsens, and its development prospects are poor, companies should use debt financing as little as possible to avoid financial risks. Of course, if an enterprise with strong profitability and the ability to expand its equity capital has the conditions to raise funds through the issuance of new or additional shares, it can use equity financing or a combination of equity financing and debt financing to raise funds.
(5) Consider the degree of competition in the industry in which the enterprise operates. When the industry in which an enterprise operates is highly competitive, it is relatively easy to enter and exit the industry, and the profitability of the entire industry is on a downward trend, equity financing should be considered and debt financing should be used with caution. If the company is in an industry where competition is low and it is difficult to enter and exit the industry, and if the company's sales profits will grow rapidly in the next few years, it can consider increasing the debt ratio to obtain financial leverage benefits.
(6) Consider the control rights of the enterprise. The financing of small and medium-sized enterprises often results in the loss of ownership and control of the enterprise, causing profit diversion and damaging the interests of the enterprise. For example: real estate certificate mortgage, disclosure of patented technology, investment conversion, exposure of important upstream and downstream customers, and clarification of internal privacy of the company, etc., will all affect the stability and development of the company. On the premise of ensuring considerable control over the enterprise, it is necessary to achieve the purpose of financing small and medium-sized enterprises and transfer ownership in an orderly manner. Issuing common stock will dilute the control of the enterprise and may transfer control to others, while debt financing generally does not affect or rarely affects the issue of control. Financing channels in life
1. Banks
When you need financing, the first thing you think of must be banks. Bank loans are known as the "reservoir" for entrepreneurial financing, because Banks have strong financial resources, and most of them have government backgrounds, so they have a strong mass base.
2. Credit card
With the innovation of commercial banking business, credit card settlement methods are becoming increasingly electronic. Electronic money such as credit card is not only fashionable, but also useful for those who are engaged in business. When you need urgent cash flow, it is also feasible to obtain certain funds through credit cards.
3. Policy pledge
Does a policy pledge insurance company lend money to the insurer? Many people may be surprised, but this business has indeed appeared. 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.
4. Pawn shop
Pawn may be the most vital industry from ancient times to the present. Nowadays, obtaining funds through pawn shops is gradually becoming known to the people. Gold, jewelry, home appliances, real estate, motor vehicles, etc. can be pawned, and securities can be used as pledge.
5. Entrusted loans
Entrusted loans are 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.