Will Rongxin go bankrupt if its capital chain is broken?
Will go bankrupt. As the carrier of economic activities, enterprises aim at maximizing profits, but often when they reach a certain scale, they will fall into a strange circle: that is, the efficiency will decrease and the capital turnover will slow down, which will seriously affect the normal operation of enterprises. If the enterprise is short of funds, it can't maintain the healthy operation of the company and its management is poor. Continuous losses will make the company short of funds and poor management. At the same time, banks and shareholders will lose confidence in the company, and it is difficult for the company to get financial support, which further strengthens the degree of capital shortage. Or take a lot of your assets to mortgage a new project, but the new project is not as high as expected, and the repayment time of the bank is up again. At this time, the money can't be borrowed. This is called the capital chain break, the bank will auction the mortgaged assets, and the company will face bankruptcy.