Enterprises need to carefully analyze and study how to choose a financing method before financing, how to grasp the financing scale and the timing, conditions, costs and risks of various financing methods.
Considering the impact of the economic environment loan computer（貸款計算機）.
The economic environment refers to the macroeconomic conditions of a firm's financial activities. In times of rapid economic growth, in order to keep up with the pace of economic growth, companies need to raise funds to increase fixed assets, inventories, personnel, etc. When the economic growth begins to slow down, and the demand for capital of enterprises decreases, generally, the scale of debt financing should be gradually reduced, and the use of debt financing should be minimized.
2 Consider the capital cost of the financing method.
The cost of capital refers to the cost of raising and using funds for a business. The lower the financing cost, the better the financing return. Since different financing methods have different capital costs, in order to obtain the required funds with lower financing costs, companies should naturally analyze and compare the capital costs of various financing methods. Financing is for developing projects and making profits.
A financing plan can only be successful if the financing benefits are greater than the total cost.
3 Consider financing risks.
Different financing methods have different risks. Generally, there is a risk of non-payment due to debt financing methods that have to repay principal and interest on a regular basis. Financing risk is relatively large, while equity financing is less risky because there is no risk of repayment of principal and interest. The failure of many investment banks is related to the abuse of financial leverage and the neglect of risk control in financing methods. Therefore, enterprises must consider the degree of risk of financing methods according to their own specific conditions, and choose appropriate financing methods.
4 Consider the profitability and development prospects of the enterprise.
As a source of business income, anyone cares about the history, status, and prospects of the market. Therefore, when financing, we must consider how to use the funds to improve product output and quality, expand the market, occupy market share, and create overall benefits for the enterprise Cards returned(還卡數).
Generally speaking, the stronger the profitability of the enterprise, the better the financial situation, the stronger the liquidity, the better the development prospects, and the greater the ability to take financial risks. When the profit rate of enterprise investment is greater than the interest rate of debt capital, the more debt, the higher the return on equity of the enterprise, which is more beneficial to the development of the enterprise and the owners of equity capital.
Therefore, when a business is in a period of rising profitability, debt financing is a good choice; when business profitability is declining, a business should use debt financing as little as possible to avoid financial risks. Of course, for companies with strong profitability and strong equity expansion capabilities, if they have the conditions to raise funds through new shares or new shares, capital or equity financing can be combined with debt financing.
【5】Consider the degree of competition in the industry in which the company operates.
The industry in which the company operates is highly competitive, and it is easy to enter and exit the industry. When the profitability of the entire industry is on a downward trend, equity financing should be considered, and debt financing should be used cautiously. The industry in which the company operates has a low degree of competition, and it is difficult to enter and exit the industry. When sales profits grow rapidly in the next few years, it may consider increasing the debt ratio to obtain the benefits of financial leverage.
Consider control of the business.
SME financing often loses business ownership and control, resulting in profit shifting and harming business interests. Such as: mortgage of title certificates whatsminer m30s++ for sale, disclosure of patented technologies, discounts on investment stocks, exposure of important upstream and downstream customers, and clear internal privacy of enterprises, etc., will affect the stability and development of enterprises. On the premise of ensuring considerable control over the enterprise, it is necessary not only to achieve the purpose of financing for SMEs, but also to transfer ownership in an orderly manner. Debt financing generally has little or no effect on control.