There are two basic financing methods for enterprises: one is debt financing; One is equity financing. Most enterprises pay more attention to debt financing, that is, financing through credit companies such as banks, which is what we usually call loans. Before the emergence of equity financing, debt financing can be said to be a good financing method. By borrowing, you can expand your financial strength, and enterprises can do more things and get faster development. It is much faster to develop enterprises with this financing method than to expand reproduction with profit surplus. However, this financing mode also has its shortcomings: \x0d\ 1. The amount of financing should be linked to the total assets of the enterprise, which can generally only reach 50-60% of the net assets of the enterprise. If an enterprise has a large-scale development project and needs a lot of money, it is generally difficult to solve it; \x0d\2。 Need mortgage and guarantee. Mortgage and guarantee are indispensable. And assets can only be mortgaged once; \x0d\3。 The use cycle of funds is short. At that time, no matter how big the amount of funds is, it is possible to lend it after all the funds have been paid off (sometimes it cannot be lent). \x0d\ What is equity financing? Simply put, it is to use the equity of the enterprise to finance. The institutions engaged in this kind of financing are mainly venture capital companies and private equity fund companies. After finding a good enterprise, these financial institutions hold shares in the enterprise through investment. Then we are bound to the enterprise and grow together. When the enterprise becomes stronger and bigger, it will recover its investment through listing or selling its equity, and profit from it. This financing method has the following advantages: 1, no interest; 2. No guarantee is required; 3. No repayment is required. Of course, there is no such thing as a free lunch. Venture capital firms and private equity firms will not easily invest their money in any one company. Before investing, they should strictly carry out round after round of research and investigation on the enterprise. If you can't meet their standards, they will never invest easily. \x0d\ This financing method puts forward high requirements for enterprises. Everything in the world is balanced: what is easy to get must be limited; Things that are not easy to get must be very demanding. Therefore, we entrepreneurs should give consideration to both, that is, actively do a good job in debt financing and make use of all available external conditions; We should correctly understand and actively prepare for equity financing. A domestic investment guru told me that capital is not a problem now, and there are not many enterprises that can really stand scrutiny. As long as you practice your internal skills, the investment company will come to you.