Funding Normal operation of any enterprise, all of the fund. Financing is not only an important method of financial management, top management is sometimes the biggest business challenges. 1, short-term funding ????Short-term capital usually refers to less than 1 year of funding, mainly for the payment of wages, purchase of raw materials. Raising sources and channels: 1. Option 1: private lending ????Mainly to other family members, relatives and friends to borrow money. ????Apply to small businesses. 2. Option 2: Commercial Credit ????Enterprises to purchase products, goods, services, deferred payment in a certain time (on credit) or advance payment, equivalent to sales direction to provide a loan to the buyer. ????To prevent abuse of commercial credit, usually specified in terms of payment discounts for periodical payment terms. 3. Option 3: loans from financial institutions ????To commercial banks or insurance companies, trust investment and securities companies, credit unions, foundations, and o ther loans from financial institutions. ????There are two types of short-term loans: unsecured credit, guarantee or mortgage. Unsecured loans is common in small or high credit rating companies, generally require security or collateral. 4. Option 4: commercial bills issued ????Commercial bills is a short-term unsecured promissory notes. Issued by the payee or payer. Accepted by the acceptor and on the due date to the payee or endorsee payments. ????Usually to large enterprises with high credit issued. Co untries limit control. 5. Programme 5: sale of receivables ????Also known as asset securitization (ABS), about corporate accounts receivable and future interest in the proceeds of bonds sold. ????General revenue of these enterprises should have long -term stability, have some cash flow. China is only the beginning in some areas of the national economy based on industry pilot. 6. Option 6: Financing from other enterprises ????A project cooperation or joint ventures to attract investment capital, investors do not participate in specific operations, only won a fixed return on investment. 7. Programme 7: internal potential ????Such as through the establishment of internal bank, subordinate unified financial accounting, settlement and funds transfers surplu s and deficiency subordinate enterprises, for internal financial intermediation, improve the efficient use of internal funds to reduce the external financing. ????Internal bank for the internal unincorporated organization, for a certain amount of business groups. Second, long-term funding ????Long-term capital generally refers to more than 1 year of funding, the main and in equipment, fixed assets investment. Raising sources and channels: 1. Option 1: issue of shares ????Issued by the company or subsidiary company shares become listed companies, direct financing from capital markets. ????Listing of currently available channels are: ???(1) in Shanghai, Shenzhen Stock Exchange A share, B listing by; ???(2) Hong Kong SAR, Japan, the American Stock Exchange, OTC market directly; ???(3) emerging stock markets in the world (such as Australia, New Zealand, Canada) direct the stock exchange; ???(4) through merger, acquisition, conversion and other backdoor way to achieve real control of listed companies and an indirect market. ????In view of the public supervision of listed companies more transparent, generally the parent company should not be listed, but will be listed on the main unit spin-off package. ????Amount of internal control and issue of shares with the prior approval system. Current policy-oriented emphasis on state-owned enterprises. 2. Option 2: issue corporate bonds ????By issuing corporate bonds or convertible bonds, financing from capital markets. ????Domestic bonds and prior approval has volume control system. Current policy-oriented emphasis on state-owned enterprises. 3. Option 3: long-term loans ????From the financial institution long-term borrowing. State regulation of industrial policy mainly through the loan structure. Can be as much as possible: ??(1) export credit, including credit buyers and sellers; ??(2) domestic or international syndicated loans; ??(3) The Government's policy of discount or preferential financing. 4. Option 4: Rent ????Divided into a finance lease and lease-kind lease. During the tenancy the lessor has ownership of property, the lessee is only right to use. Rental costs can enter the cost due to tax benefits enjoyed. ????To expand the flow of funds, the availability of leveraged lease or sale leaseback approach. Where the latter is the business of real estate or other long-term assets sold to financial institutions to obtain funds, and then rent back to use. 5. Programme 5: Project Financing ????Corporate design packaging project proposals to attract funding for projects to BOT, ABS, mutual funds, technology venture capital fund shares way to get financial support. ????Mainly used for large-scale, basic items, such as roads, railways, bridges, airports, ports, power plants, water, telecommunications, environmental protection, oilfield, mining, agriculture comprehensive development tracts, luxury hotels and so on. 6. Programme 6: internal financing ????Specific programs and channels are: ????¡ñ using its own capital ????¡ñ attract new businesses to increase their investment capital ????¡ñ rolling into business profits ????¡ñ the use of foreign investment income ????¡ñ selling low-quality assets or the assets are inconsistent with the corporate strategy ????¡ñ employee stock ownership or financing ????¡ñ managers buy (stock) 7. Programme 7: The establishment of a finance company ????Finance is an independent enterprise legal person, is generally handled within the members of the Enterprise Group's financial services unit of non-bank financial institutions, its business units, including members of the group of RMB deposits, loans, investment, settlement, security, agents and discounting , concurrently group trust, financial leasing, commissioned by the competent departments, members of the group or unit trust loans, investment services, and temporary financial difficulties, the lending and securities business. ????States on the establishment of a more financial Gongsi a strict management system to require companies and close layer Jituan own business in one billion yuan Yi Shang Zi Chan, finance companies, money paid less than 50 million yuan of capital Ying Bu conditions, Muqian approval by the Zhongyangyinhang, generally more difficult to set up enterprise groups eligible for financial companies. Third, corporate financing strategies 1. Integrated enterprise financing to consider: ????¡ñ the amount of funds the size of ????¡ñ the length of funding period ????¡ñ funding sources ????¡ñ debt or equity capital nature ????¡ñ power structure of the enterprise ????¡ñ financial relations stability and to minimize financing costs 2. The use of financial leverage, the proportion of assets and liabilities of the pursuit of the best companies. ???(1) Due to the nature of debt financing, its interes t in corporate finance fees support the following subjects. As the cost reduction to achieve a reasonable income tax, equity investments can increase the rate of return, so moderate debt is wise. At present, China's private enterprise liability is too low, management is too conservative and should increase efforts to borrow. ???(2) whether good or bad enterprise performance, repayment of debt capital is rigid. Excessive debt will increase business risk. At present, China's state-owned enterprises are over-indebtedness, liability should be reduced to a reasonable range. 3. Enterprises according to the development of strategic planning, investment planning, operational scenarios, to develop short, medium and long-term funding requirements planning, and so de termine the overall financing program, select a reasonable financing structure. 4. Enterprises should first improve the efficiency of internal funds in order to reduce external financing pressures. 5. Enterprises should consider capital, labor, technology and other elements of the synergy between the elasticity of substitution and to increase the input of other factors, to reduce the funding needs or cash flow, such as: ????¡ñ land use right or fixed assets, less cash inputs ????¡ñ to reduce the cash investment in finance leases ????¡ñ barter trade (barter) ????¡ñ equity swap ????¡ñ special permission of government (with gold content) to reduce project costs ????¡ñ valued intangible assets ????¡ñ Compensation trade ????¡ñ the use of franchising 6. To increase corporate security, enlarged debt capacity. ????Optimize the structure of existing assets, improve asset quality, increasing for mortgages, secured assets, in particular, to deduct, through the small business capital controls greater social c apital, there are many companies in real control, ownership, disposal the right to enlarge debt capacity to finance business development required huge amount of money. 7. Business groups unified financial management: (1) common external financing, system by system also, to get credit offers, convenience and reduce risk. (2) to provide credit guarantee unity, trust, leasing and insurance. (3) centralized bank account, the effective monitoring of capital flows subordinate enterprises. 8. The establishment of financial advisers (financial consultants) system. ????In accordance with international practice, corporate finance have to hire financial advisers guidance. (1) business consultant with Permanent Financing (financial adviser) unit, the unit mainly for corporate finance aid planning, programming, agency finance, underwriting and securities underwriting. (2) At present, domestic financial advisers from the securities companies, investment banks, trust fund management companies, investment management companies, accounting firms, financial consulting firms and other financial services options. 4, with finance, and ????From domestic and international business development process and experience, combined with industrial capital and financial capital is inevitable. Shaping the financial functions of large enterprise program: Option 1: establish a solid relationship between banks and enterprises ????--- The original financing companies to optimize the network to a major bank as the basis, form the main channel of financing, expanding further on the basis of this assistance, new financing channels. ????--- Main Bank System and the implementation of credit line credit management, through the bank and long-term contracts, the formation of communities of interest. Scenario 2: the introduction of shares of financial institutions ????When the establishment of joint-stock companies to attract financial institutions to invest in shares or debt to equity of existing established relationships with financial institutions, property rights, to enjoy the priority of financial institutions to offer enterprise support. ????Under the existing commercial banking laws, commercial banks can not invest in shares of the company. Non-bank financial institutions can invest in shares of enterprises, such as credit unions, insurance companies, trust companies, securities companies, fund management companies, financial companies. Option 3: The shares of financial institutions ????On banks or non-bank financial institution shares, as shareholders of financial institutions, financial institutions, through the influence of access to priority support. Powerful business groups on financial institutions through the holding, so satisfied in the group range. ????At present, China's financial reform process, there are some opportunities for equity participation of financial institutions should promptly seize. For example: ????¡ñ (stock market downturn) on the acquisition of securities companies ????¡ñ clearing of trust and investment company acquisition or equity participation ????¡ñ restructured urban credit cooperatives into city commercial bank shares ????¡ñ launch investment insurance ????¡ñ involvement in a lease or consumer credit organization ????¡ñ involvement in a joint-stock, private banks ????¡ñ involvement in a mutual fund, venture capital funds Programme 4: mutual shareholding enterprises and financial institutions ????Between enterprises and financial institutions holding shares or the ring, so that support suppression paradox ¬Ä Qu Xing Xing heart-shaped Pie, forming the closest property rights. ????These programs have different features, strengths and weaknesses and scope of the enterprise should form their own special financial system, shaping the financial function, proceed from reality, easy things first, an implementation of a mature, gradually fixed. ????For some large groups, not only to seek the support of financial capital, but also to the financial industry as the company industrial categories, the industrial capital into financial capital, to penetrate the financial sector, so that the financial industry first as a growing point of the potential benefits of the company and then grow into a pillar industry group. If the owners involved in the financial industry for more huge financial profits and financial capital, forming the core of the financial capital of the consortium-based holding group model.