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How to understand the enterprise's moderate debt management strategy?
There are advantages and disadvantages to the use of moderate debt management strategy:

1, you can quickly raise funds in the fierce market competition, effective access to financial leverage, reduce the cost of enterprise funds, improve the governance mechanism of the external monitoring factors;

2, debt management will not affect the control of the enterprise owner of the enterprise, is conducive to the retention of control of enterprises, and is conducive to maintaining existing shareholders' control over the enterprise;

3, large amounts of debt to help overcome the waste of funds caused by the production and operation process, and enhance its control over the enterprise. Maintain the control of the existing shareholders of the enterprise;

3, a large amount of debt is conducive to overcoming the phenomenon of idle and wasteful funds caused by the process of production and operation, to enhance the sense of responsibility and urgency in the use of funds, and consciously strengthen the management, improve the utilization of funds and economic efficiency.

4, but debt management is also a "double-edged sword", in improving the profitability of the enterprise at the same time, increase the financial risk of the enterprise

Supplement:

Moderate debt management strategy refers to the enterprise has its own funds as the basis, in order to maintain normal business operations, expand the scale of operations, start a new business, etc., in order to maintain normal business operations, expand the scale of operations, start a new business, etc., in order to maintain normal business operations, expand the scale of operations, start a new business. In order to maintain the normal operation of the enterprise, expand the scale of operation, open up new business, etc., generate financial needs, cash flow shortfalls, through bank borrowing, commercial credit and the issuance of bonds and other forms of absorption of funds, and the use of these funds to engage in production and operation activities, so that the enterprise assets continue to be compensated for, value-added and renewed a modern enterprise financing business model.