Effective methods of financing for small and medium-sized enterprises

Financing is also called finance, which is the financing of monetary funds, and the behavior of the parties to raise or lend funds in the financial market in various ways. Judging from the development of modern economy, as an enterprise, it is necessary to have a deeper 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, and enterprises must deal with them.

1. Bank financing

Bank loan is the most conventional and lowest-cost financing method. Direct bank loan generally requires enterprises to provide relevant counter-guarantee measures, which can be credit, guarantee, mortgage, pledge and lien, but the most common, easy and feasible methods are fixed assets mortgage, rights pledge and guarantee company guarantee. Therefore, small and medium-sized enterprises have to combine their own characteristics, sort out their own on-and off-balance-sheet resources and find a suitable method. Common methods are:

1. Fixed assets mortgage loan.

banks generally use different discount rationing loan lines according to different fixed assets. Machinery and equipment are generally allocated with loans at a discount of 1-3. At present, most banks have not adopted equipment mortgage loans because it is difficult to dispose of equipment when risks arise; Land and commercial facade are generally 5% off with loans; Loans for houses and office buildings are at a maximum discount of 3%. For some enterprises with large scale, stable cash flow and heavy assets, some banks have launched the sequential mortgage business for the needs of business competition, that is, they have mortgaged the mortgaged assets again and registered the mortgage, which has greatly improved borrowing capacity. In order to improve the financing amount of fixed assets mortgage, enterprises can mortgage fixed assets to guarantee companies, and the guarantee companies can guarantee loans to banks. The amount of secured loans can generally reach or exceed the assessed value of fixed assets. For example, if an enterprise applies for a loan from a bank with its own commercial door, the estimated value of the commercial facade is 1 million yuan, and the enterprise can generally obtain a loan amount of 5 million yuan through direct bank loans; But if you apply for a loan from a bank through a guarantee company, you can get 1 million yuan? A bank loan amount of 15 million yuan or more.

if the assets owned by an enterprise have stable cash flow (including but not limited to fee income, rental income and other operating income) as the repayment source, and the related operating assets are expanded, rebuilt and decorated, the operating assets can be used as collateral for the loan and the accounts receivable related to the operating income can be used as pledge to apply for a relatively long loan from the bank, which is commonly referred to as the operating property loan. Operating property loans can generally apply for a higher loan amount and a longer loan period (3 years? 8 years) and flexible repayment methods (paying interest on a monthly basis, repaying the principal in one lump sum at maturity, or paying the principal in installments and paying interest on a monthly basis, etc.).

2. Transfer of rights and pledge of loans.

(1) Transfer of rights. Also known as factoring business. Enterprises will transfer the accounts receivable generated after selling goods or providing services to banks, which will provide financial services for accounts receivable loans and accounts receivable management. This kind of loan needs to provide accounts receivable with two elements: first, accounts receivable are accounts receivable of large enterprises recognized by banks; Second, large enterprises need to confirm the transfer of accounts receivable creditor's rights. This kind of financing is often used for upstream and downstream customers in the industrial chain.

(2) pledge of accounts receivable or invoice financing. After the enterprise sells the goods and issues an invoice, it can use the generated accounts receivable as pledge, register the pledge and apply for a short-term loan from the bank. When a bank handles this kind of loan, if it can't receive the money after the accounts receivable expire, the loan enterprise needs to buy back the invoice and repay the corresponding principal and interest, so this kind of loan is relatively inflexible. At present, some guarantee companies use invoices as collateral. When the accounts receivable are not recovered, the loan term can be extended to one year or longer by replacing invoices and accounts receivable.

(3), bill discount financing. Enterprises obtain loans from banks by fully endorsing and transferring their bank acceptance bills. At present, banks generally discount bank acceptance bills, but it is difficult to discount commercial acceptance bills issued by enterprises.

3. chattel mortgage loan.

At present, about 6% of the total assets of SMEs in China are movable property such as accounts receivable and inventory. How to make movable property play the role of financing is difficult to promote in most banks at present, mainly because the supervision of movable property is not in place. However, if logistics supervision enterprises are introduced to supervise movable property, loans can be processed after signing a supervision agreement on commodity financing pledge.

4. Credit loan.

(1) domestic letter of credit financing. At present, some domestic banks have carried out domestic L/C loan business, that is, for trade-oriented enterprises, they can apply to the host bank to open a domestic L/C, issue a payment commitment to the seller, and promise to fulfill the payment responsibility to the seller when the documents meet the terms stipulated in the L/C. This is also a popular financing method at present.

(2) M&A loans. For high-quality customers who meet the national industrial policy and bank credit policy, have high industrial or strategic relevance between the acquirer and the target enterprise, and the M&A transaction is legal and compliant, they can apply for M&A loans from the bank to pay the price of the M&A transaction.

(3) Joint loan and joint guarantee. This is the most common credit loan model developed by banks, mainly targeting customers in markets, associations and parks, and initiated through their management committees and associations, with a 3? Seven customers who know each other and trust each other apply for short-term loans from banks for the joint guarantee and joint loan entities. Different banks have different regulations in this kind of business, mainly in the proportion of margin, loan amount and loan subject requirements. Usually, the loan amount is controlled within 5 million yuan for a single household.

5. Standard factory building mortgage loan.

In the era of industrialization, enterprises specialized in building industrial workshops have emerged. The standard workshops built by enterprises are generally universal, complementary and standardized, and they are sold to production-oriented small and medium-sized enterprises. After purchasing the workshops, small and medium-sized enterprises often have a shortage of liquidity, so some banks have launched mortgage loans for small and medium-sized enterprises that purchase the workshops in the park. Generally, small and medium-sized enterprises need to pay 3% down payment, and the longest repayment period can reach 7 years.

second, mezzanine financing

mezzanine financing is a new financing mode, mainly equity+creditor's rights financing mode. The financing institutions adopting this method are mainly investment companies and private equity investment fund companies. This method can solve the problem that enterprises can obtain much-needed financial support without collateral and other counter-guarantee measures, that is, enterprises will transfer part of their equity, but will eventually buy back their equity and pay a certain income in the future. This kind of financing is relative to bank financing.

iii. trust financing

trust refers to the act that the trustor entrusts the property right to the trustee based on his trust in the trustee, and the trustee will manage or dispose of it in his own name for the benefit of the beneficiary or for a specific purpose according to the wishes of the trustor. In 28, trust companies launched the trust products for SMEs for the first time in China. Since then, trust financing has also become an important source of financing for SMEs. At present, there are two financing methods for small and medium-sized enterprises in domestic trust: one is that trust companies pool their funds in the form of trust contracts and directly provide loans to a single small and medium-sized enterprise; The second is to introduce the government and guarantee institutions to form? Politics, faith, enterprise and insurance? Multi-party cooperation mode. Recommended by the government, guaranteed by a guarantee company, a number of small and medium-sized enterprises with financing needs form a project loan package, and trust companies issue trust products, and the funds raised are invested in packaged small and medium-sized enterprises.

iv. financial leasing

this financing mode is mainly based on the financing mode that small and medium-sized enterprises obtain loans by purchasing new equipment or selling and repurchasing equipment, which can promote the technological upgrading and industrial upgrading of core equipment of small and medium-sized enterprises and optimize the financial structure of enterprises. The usual methods are: 1. Financing lease of newly purchased equipment. When an enterprise has no money to buy equipment, it can apply to the leasing company, which will buy new equipment from the equipment supplier and lease it to the enterprise for use. When the lease expires, the equipment will be owned by the enterprise. 2. Lease the self-owned equipment after it is sold. Small and medium-sized enterprises can sell their own equipment to the leasing company at a fair value, and then rent the equipment from the leasing company by means of financial leasing, so as to obtain funds for investing in the equipment.

V. Financing of asset management companies

Asset management companies mainly buy and operate non-performing assets divested by financial institutions. After disposing of non-performing assets, asset management companies have a lot of funds, but their business scope determines that their funds can only be used to buy non-performing assets, not to issue loans, and a large number of idle funds need to find a way out, so disguised financing has become the way out for asset management companies to find benefits at present. The specific method is: SMEs can lend a loan to banks or microfinance companies first, and then the loan is acquired by asset management companies in the form of non-performing loans, thus realizing financing in disguise.

VI. SME private placement bond

SME private placement bond is a corporate bond issued by SMEs in a non-public way, and it is agreed to repay the principal and interest within a certain period. Private placement bond is one of the most important innovations in the capital market. It is a highly market-oriented product that does not require administrative examination and approval. It is issued by filing, with no financial indicators required for the issuing enterprises, no mandatory credit rating and upgrading, and no special restrictions on the use of raised funds. The scale of bond issuance by a single enterprise is between 3 million yuan and 2 million yuan, and the issue interest rate is between 7% and 11%. It can be said that compared with other financing channels for small and medium-sized enterprises, private debt for small and medium-sized enterprises is more convenient, efficient and flexible.

VII. Fund financing

In the United States, fund financing is the main channel for SMEs to obtain financing, and half of the funds for SMEs come from funds; In China, more than 9% of SME financing comes from bank loans, and fund financing is just emerging. However, private capital is rapidly entering the fund industry, and a large number of venture capital funds, venture capital funds and industrial investment funds have been set up, and small and medium-sized enterprises with high quality and good growth are sought. First, small and medium-sized enterprises can seek cooperation with the fund to obtain development funds; Second, for high-quality projects, fund companies can be set up to raise funds from specific targets to solve the source of project funds.

Of course, the financing of SMEs is difficult, on the one hand, because the macro-financial policies and financing system that SMEs are facing now need to be improved, and they can't meet the capital needs necessary for the development of SMEs. On the other hand, because the credit quality of small and medium-sized enterprises is relatively poor compared with large enterprises, information asymmetry increases the difficulty of financing for small and medium-sized enterprises. To solve the financing problem of small and medium-sized enterprises, it is necessary to solve it separately according to the actual operation, upstream and downstream situation, credit situation, industry situation and project situation of small and medium-sized enterprises.

this paper tries to find some feasible ways to solve the financing problems for small and medium-sized enterprises according to the current operational financing methods, so as to help solve the financing problems for small and medium-sized enterprises.

financing channels for enterprises

financial leasing

financial leasing has special advantages in solving the financing problems of enterprises that other small and medium-sized enterprises do not have, and it is a feasible choice to solve the current financing difficulties of enterprises. Financial leasing is a new financing method for small and medium-sized enterprises, which integrates credit, trade and leasing, and is characterized by the separation of ownership and use right of leased objects. The lessor purchases the equipment according to the leased equipment and suppliers selected by the lessee for the purpose of providing financial financing to the lessee, and the lessee obtains the long-term use right of the equipment at the expense of paying the rent by signing a financial lease contract with the lessor.

for the lessee, financial leasing is adopted to realize the financing purpose of small and medium-sized enterprises through the way of melting things, thus alleviating the financial pressure of fixed investment. In addition, the problem of liquidity shortage can also be solved by means of sale and leaseback. The so-called leaseback means that the enterprise sells the existing fixed assets to the leasing company, and the leasing company continues to hand over the assets to the enterprise for use in the form of leaseback, so that the enterprise not only obtains funds, but also does not affect the normal production and operation.

research shows that it is easier to succeed in equipment leasing business for private small and medium-sized enterprises. First, the market research and demonstration of private small and medium-sized enterprises before the introduction of equipment will generally be done more fully, and the payment of rent will be guaranteed; Secondly, the disposal of non-payment of lease fees by private small and medium-sized enterprises can be less interfered by other non-economic factors and can be handled in full accordance with market rules; Third, commercial banks have the advantages of leasing business in terms of business outlets, management systems, professionals and information networks.

Therefore, it should be a practical financing method for small and medium-sized enterprises to carry out second-hand equipment leasing business for private small and medium-sized enterprises by commercial banks.

financing guarantee company

financing guarantee company channel: pawning is perhaps the oldest business, and it has a disgraceful history in the eyes of many people. In the financing of small enterprises, pawn has regained the market with its unique advantages. There are more than 1, pawn shops in China, and some new ones are under examination and approval. Pawn is a financing method for small and medium-sized enterprises, which takes physical objects as collateral and obtains temporary loans in the form of physical ownership transfer. In view of the backlog of unsalable goods in many small and medium-sized enterprises, pawn shops can help small and medium-sized enterprises to raise liquidity by using idle assets, thus playing an active role in revitalizing the existing assets of enterprises and promoting the circulation of goods.

compared with bank loans, besides loan interest, pawn loans also need to pay higher comprehensive fees, including storage fees, insurance premiums and the cost of pawn transactions, so the cost of pawn loans is higher, and the scale of pawn loans is relatively small, but pawn loans have incomparable advantages over bank loans. First of all, it is convenient and quick, and it can solve the fund demand of the household quickly and timely; Secondly, the products are flexible; Third, the deadline is short and the turnover is fast; Fourth, because it is a pledge and mortgage in kind, it does not involve credit issues. These points are very suitable for the capital demand characteristics of small and medium-sized enterprises.

venture capital

venture capital originated from silicon valley in the United States in the 194s.

without any property as collateral, it exchanges funds with the company's equity held by the company's operators. Venture capital has experienced a long period of introduction and growth in China, and it should be said to be a relatively mature financing method for small and medium-sized enterprises in terms of policy system and operation.

venture capital is most suitable for small and medium-sized high-tech enterprises with high-tech products or projects and broad development space and market prospects, such as communications and semi-industries.