Ten Misunderstandings Of Private Enterprise Financing

Enterprise financing is a key link in the process of enterprise development. The long-term development of private enterprises must have a clear long-term development strategy. Enterprise capital operation strategy must be put into consideration in the long-term development strategy of enterprises, and from inside to outside, create a business pattern that capital is willing to flow into the enterprise.

In the course of development, many private enterprises look at corporate finance as a short-term behavior. They hope to win a bank loan or equity financing, but there is little chance of success.

In order to change the financing difficulty of private enterprises, the author thinks that we need to get out of the following financing misunderstandings.

Some private enterprises, in order to raise funds, whitewash financial statements or even fake products at all costs, and financial data are divorced from the basic operation of enterprises.

Some private enterprises think that their business benefits are good. It is very easy to get financing. They do not want to spend time and energy on packaging enterprises. They do not know that the capital side pays more attention not only to the short-term profits of enterprises, but also to the long-term development prospects of enterprises and the risks faced by enterprises.

Two, lack of long-term planning and temporary cramming. Most private enterprises only think of financing when they are faced with financial difficulties. They do not understand the nature of capital.

The nature of capital is profit seeking, not emergency, not charity.

In normal operation, enterprises should consider the financing strategy and establish extensive contacts with the capital side.

Three, eager to get money and ignoring the internal financing of enterprises, they only thought about money, and some basic work was not done in time.

Before the financing of private enterprises, we should first comb the enterprises, clarify the relationship between property rights, assets ownership and related enterprises, and clearly display the business and company business in front of investors, so that investors can rest assured.

Four, financing narrow vision, only to see bank loans or equity financing, the financing way of many enterprises, not just bank loans and equity financing, leasing, guarantee, cooperation, mergers and acquisitions and other means can achieve the purpose of financing.

Five, only recognize the money, do not recognize the people, and the private enterprises are eager to finance. They do not consider the impact of financing on business development.

In addition to capital, private enterprises should also consider whether investors are helpful to enterprises in terms of business operation and enterprise development.

Six, only want to finance, do not want enterprises to standardize.

In the process of financing, private enterprises should continuously promote the standardization of enterprises and enhance their financing capabilities through the standardization of enterprises.

Seven, only expand, do not shape the corporate culture, the private enterprises in the financing process, only the expansion of enterprises, did not shape the corporate culture, eventually led to the scale of enterprises bigger, but the enterprise has lost the original cohesion. The internal or various departments of the enterprise group lacked common values and no synergy.

Eight, only expand, do not establish a reasonable corporate governance structure. Many private enterprises continue to expand through financing, but business management is becoming more extensive and loose.

With the expansion of enterprises, enterprises should constantly improve the corporate governance structure, so that the company's decision-making can go on a standardized and scientific way, and avoid the risks of enterprise expansion process through standardized decision-making and management.

Nine, underestimate the difficulty of financing, and mistakenly believe that only by relying on their own small circle can you get the funds. Some private enterprises often underestimate the difficulty of financing, and expect too much of the individual funds in front of them.

Ten, unwilling to spend money, professional financing consultants, private enterprises, have strong financing intentions, but few people really understand the financing. They always want to make a phone call. Investors will invest their capital in enterprises, simplify their financing, and do not want to hire professional financial advisers.

A lot of people think that financing only needs to write a business plan. It is cheap to find an organization or an individual or even a student to write, regardless of whether he has the experience of financing and financing channels, so long as the price is low.

Corporate finance is very professional. Financing consultants should have rich financing experience, extensive financing channels, have sufficient knowledge and understanding of the capital market and investors, and have strong professional planning ability. They should consider all kinds of problems encountered in the financing process and the ways to solve them.