Different financing methods will have different impacts on the company's subsequent operations. The financial director can analyze the company's financing costs based on the actual situation. Funds raised through loans are mainly used for enterprise production operations and equipment investment, while funds obtained through other financing methods, namely discounts and inventory auctions, are mainly used to solve the enterprise's temporary fund shortage, such as the need for advertising.

Although short-term loans have the lowest cost of capital, we need to consider its opportunity cost. According to the rules, short-term loans require one-time repayment of principal and interest upon maturity. This repayment method puts greater pressure on the company to repay the loan when the loan matures, because the company has a large demand for funds in the early stages of operation, such as expanding production scale. If you borrow debt, the short-term loan will be repaid before the production line is launched, so it is easy for the company to have no money to build new lines because of the loan repayment. In other words, the management team must first ensure that the company is profitable before there is room for short-term loans. Secondly, the time and amount of short-term loan borrowing need to be planned, and the proportion of short-term loans to the total loan amount needs to be appropriate.

The maximum borrowing period of a long-term loan is 5 years. Although the interest rate is higher than that of a short-term loan, the cost of a long-term loan is mainly the interest expense incurred each year. For companies in the growth stage and with Companies with good development prospects have relatively little repayment pressure. However, due to the poor liquidity of long-term loans, the financing activities of long-term loans must be subject to the requirements of investment decisions and investment plans in terms of financing time and amount. Moreover, interest expenses will affect the company's equity limit, thereby affecting the later period. temporary debt. Discounting is not only used when a company has cash flow problems. As an excellent CFO, he should foresee when the company will have cash difficulties and what the gap will be. Then, by carefully analyzing the account period and amount of accounts receivable, Find the optimal discount plan, which not only solves the problem of insufficient cash, but also achieves a reasonable combination of corporate accounts receivable and minimizes discount expenses.