The ways for enterprises to raise long-term funds include depreciation, retained earnings, long-term bank deposits, issuing corporate bonds and issuing stocks. Among them, enterprises that attract investment can raise funds through absorption. In most cases, it will be divided into state investment, enterprise investment and individual investment. The characteristics of absorbing direct investment are that it helps to increase the reputation of enterprises, help enterprises to form production capacity as soon as possible, and reduce financial risks.

Disadvantages of long-term liabilities

1, the interest rate of long-term liabilities is much higher than that of short-term liabilities;

2. Long-term liabilities have little flexibility. If the enterprise has long-term liabilities, even if there is no capital demand, it is difficult to plan ahead and can only continue to pay interest;

3. Short-term liabilities have a short term, and there is often a risk that the principal cannot be repaid on time;

4. Short-term liabilities also have great uncertainty risks in interest expenses. Using short-term liabilities to raise funds requires constantly renewing debts. After the loan time is up, the interest on the next loan is uncertain.