Traditional direct financing

Compared with indirect financing, direct financing has the characteristics of high market transparency and scattered risks, which is conducive to financial stability. In mature market economy countries, direct financing plays a dominant role in the financing system, while in China, the development of direct debt financing of enterprises is slow for a long time. In recent years, China's financial management system has gradually changed, especially after China's entry into WTO, the driving force of financial system reform has gradually changed from the pressure of endogenous change to the pressure of internationalization of the financial industry, the financial management system has been constantly adjusted, and the speed of financial innovation has gradually accelerated. The financial capital market led by China People's Bank and China Securities Regulatory Commission has developed rapidly. Financial supervision institutions with "three meetings and one line" as the main body are more and more in step with each other in terms of monetary policy orientation, regulatory policy coordination and financial product innovation. Business model innovation and product innovation of financial institutions are increasingly close to the financing needs of enterprises.

(B) traditional indirect financing

1. Bank loan

Bank loan refers to an economic behavior that banks lend funds to people in need of funds at a certain interest rate according to national policies and return them within the agreed time limit. The advantages of bank loans are: (1) simple operation; (2) The repayment period is flexible; (3) Compared with direct financing products, the entry threshold is lower, and there is no need to meet the credit rating, enterprise scale, operating performance and other conditions stipulated by direct financing products. The disadvantages of bank loans are: (1) high financing cost; (2) The financing scale is small. Bank loan is the financing support provided by a single financial institution to enterprises. (3) Strict restrictions on the use of funds. Loans should be issued by entrusted payment, which will make enterprises face greater obstacles or more risks in the application and use of bank loans.

2. Bill financing

Bill financing, also known as financing bill, means that the bill holder obtains a commercial bill through non-trade means and applies to the bank for discount, so as to obtain funds by bill and achieve the purpose of financing. One advantage of bill discount financing method is that banks do not lend money according to the asset size of enterprises, but according to market conditions (sales contracts). From the date of receipt of bills to the date of cash maturity, enterprises often spend as little as dozens of days and as much as 300 days, during which funds are idle. Bill financing relies on the exchange of funds generated by commercial activities, so this financing method has good applicability in enterprises with frequent business settlement.

3. Financing lease

Financial leasing is a special way of debt financing, that is, in the project construction, you need funds to buy some equipment, and you can apply for financial leasing from financial institutions. The equipment is purchased by the financial institution and leased to the project construction unit, and the construction unit pays the rent for renting the equipment to the financial institution by stages. Financial leasing is widely used for mortgage financing of aircraft, ships and other assets, and also for the preparation of large-scale power projects.

4. Financing of the project company

Project company financing refers to the project financing mode that the sponsors or investors of the proposed project first set up a limited liability project company in the form of equity (including joint venture), and then the project company directly invests in the proposed project and obtains the project asset rights and management rights, and the project company agrees to borrow money from the lender and is responsible for paying off the debts. Project company financing is not an external financing product in essence, but an investment and financing mode based on investment and financing arrangement, corporate governance structure construction, internal risk isolation and combination of internal and external financing. Its main operation mode is to build an independent corporate governance structure, invest some of its own funds, and then raise the remaining funds mainly from external indirect financing to build operational projects. Project company financing has the characteristics of simple structure and clear financial relationship, and it is the most widely used project financing structure in project financing practice at present.

(3) Innovative financing (domestic)

1. Insurance fund financing

Insurance funds generally refer to the capital and reserves of insurance companies. Reasonably guiding the flow of insurance funds and ensuring that insurance funds fully, reasonably and safely enter the financial market will bring huge financing sources to enterprises. According to relevant regulations, the use of insurance funds is limited to the following forms: bank deposits; Buying and selling bonds, stocks, securities investment fund shares and other securities, as well as investing in real estate.

The advantages of the debt investment plan for insurance capital infrastructure are: (1) The capital scale is large. By the end of 20 12, the total assets of insurance companies reached 7.4 trillion yuan, making them important investors in financial institutions. (2) The term of funds is long. Insurance funds mainly come from the premium input of the insured, especially the premium income of life insurance business. (3) The interest rate is low. The interest rate of the insurance fund debt investment plan will generally be significantly lower than the bank loan interest rate in the same period. Of course, because the target of raising funds is limited to insurance companies, there are some shortcomings in liquidity, and the financing interest rate may generally be higher than the bond interest rate in the same period. (4) There is no upper limit on the total amount of financing. The debt investment plan is not bound by the Securities Law. According to the new policy of 20 12, there is theoretically no upper limit of total financing. For a specific project, the financing amount of the debt plan shall not exceed 40% of the total project budget.

2. Financial derivatives business

Financial derivatives are new financial products derived from basic financial instruments, and their value is determined by the price changes of basic financial instruments. Financial derivatives are concepts corresponding to spot, including futures, options, swaps and swaps. For enterprises, financial derivatives, like futures and other forward commodity contracts, can smooth the fluctuation of financing costs and are effective tools to lock in financing costs and reduce financing risks. To carry out financial derivatives business, we must not have speculative profit psychology. Enterprises should balance the financing cost and avoid the risk of interest rate changes, and take it as an auxiliary means of enterprise financing.

3. Supply chain financing

Supply chain financing is closely related to supply chain management. If supply chain management is a management model for core enterprises and their supply chain networks, then supply chain financing is a business model in which core enterprises cooperate with banks to provide financial services for all nodes in the supply chain. On the one hand, effectively inject funds into the upstream and downstream supporting small and medium-sized enterprises in a relatively weak position to solve the problems of financing difficulties and supply chain imbalance of supporting enterprises; On the other hand, bank credit should be integrated into the purchase and sale behavior of upstream and downstream supporting enterprises to enhance their commercial credit and promote the establishment of long-term strategic coordination between supporting enterprises and core enterprises, thus enhancing the competitiveness of the whole supply chain.

The main operational ideas of supply chain financing are: first, straighten out the information flow, capital flow and logistics of supply chain-related enterprises; Core enterprises integrate the capital flow of banks or financial institutions with the logistics and information flow of enterprises according to the stable and supervised accounts receivable, accounts payable and cash flow; Then banks or financial institutions provide enterprises with comprehensive business services such as financing and settlement services.

4. Industrial investment fund financing

Industrial investment funds are also called venture capital funds or private equity investment funds. Generally speaking, it refers to raising funds to invest in the equity or quasi-equity of unlisted enterprises with high growth potential, and participate in the management of the invested enterprises, so as to realize capital appreciation through equity transfer after the invested enterprises mature. The characteristic of industrial investment funds is that the investment targets are mainly non-listed enterprises, and the investment period is usually 3 -7 years. The purpose of investment is to promote the development of the invested enterprise according to its potential value, and choose the right time to quit, so as to realize the capital appreciation income. As a venture capital industry, the investment behavior of industrial investment funds is less restricted, and there are fewer restrictions on fund raising. Therefore, enterprises can better solve the problems of short term, limited funds and lack of stability of traditional financing funds by setting up industrial investment funds and then raising funds through industrial investment funds to invest in enterprises.

(4) Innovative financing (overseas)

1. overseas direct listing financing

Direct listing means that domestic enterprises directly apply to overseas stock exchanges for listing. Including issuing B shares for listing on domestic stock exchanges; Directly issue shares overseas and go public; H shares; Red chips; Use depositary receipts to issue shares and go public. Direct overseas listing of domestic enterprises needs to be examined by China Securities Regulatory Commission before they can apply for listing on overseas stock exchanges. Because there are many legal obstacles for state-owned enterprises to set up shell companies overseas, and the red chip method can not greatly reduce the examination and approval process of state-owned enterprises' overseas listing, most state-owned enterprises go public directly.

Overseas direct listing requires enterprises to have their own strength, which is mainly suitable for large and medium-sized enterprises with strong economic strength and room for overseas expansion.

2. Indirect listing financing

Due to the complexity, high cost and long time of direct listing, in order to avoid complicated domestic examination and approval procedures, enterprises can choose indirect ways to list and raise funds overseas: that is, domestic enterprises register their companies overseas, and overseas companies obtain control over domestic assets through acquisition and equity swap, and then take overseas companies to list on overseas exchanges. Domestic enterprises buy shell companies overseas and then inject domestic assets or rights into shell companies. In practice, this acquisition method can be roughly divided into two types: one is to acquire listed companies in overseas main board market and growth enterprise market (such as Haier's acquisition of Hong Kong Zhongjian Digital); The other is to acquire OTC listed companies such as OTCBB and Pink Sheets.

Indirect overseas listing is mainly suitable for large and medium-sized enterprises with complicated overseas direct listing procedures, high approval constraints and high direct listing costs, as well as small and medium-sized enterprises that are difficult to meet the conditions for overseas direct listing.

3. Trade financing

Trade financing refers to short-term financing or credit facilities provided by banks to importers or exporters related to import and export trade settlement. It is a financing method for enterprises to increase cash flow by using various trade means and financial instruments in the course of trade. In the past, domestic trade mostly used irregular overdue accounts payable. After the gradual development of domestic commercial paper, it was accelerated by using commercial paper financing. In international trade, standardized financial instruments have played an important role in enterprise financing. The main ways of international trade financing include international factoring financing, forfaiting, packaged lending, export bill of lading, import bill of lading, delivery guarantee, export commercial invoice discount, etc.

4. Overseas RMB bond financing

Offshore RMB bonds refer to bonds denominated in RMB issued outside Chinese mainland. Due to the low financing cost, issuing offshore RMB bonds has become the focus of large domestic enterprises to expand financing channels.

5. Domestic insurance and foreign loans

Domestic insurance and foreign loan business refers to the business in which an enterprise issues an unconditional and irrevocable counter-guarantee to a domestic bank, and the domestic bank issues a letter of guarantee or standby letter of credit to an overseas bank for its overseas subsidiary, and the overseas bank provides financing to the overseas subsidiary. The background of domestic insurance and foreign loan business is that foreign exchange control is implemented in China, and the flow of funds at home and abroad is inconvenient, which has caused two problems: first, the overseas subsidiaries have poor qualifications and low brand awareness, which leads to financing difficulties; Second, the cost of capital at home and abroad is quite different. Domestic financing interest rate is high, while foreign financing interest rate is relatively low. The former makes it difficult for overseas enterprises to operate, which is not conducive to domestic enterprises to "go global"; The latter leads to that once external funds return to China, they can solve the financing problem of domestic enterprises or obtain excess profits. Therefore, it is helpful for enterprises to carry out domestic insurance and foreign loans to solve the financing problems of domestic and foreign enterprises and reduce the financing cost.