Specifically, financing is the behavior and process of raising funds for enterprises. That is, according to their own production and operation, capital ownership and the needs of the company's future operation and development, enterprises adopt certain methods to raise funds from investors and creditors of the company through scientific prediction and decision-making. Any enterprise financing is carried out through certain channels and ways in a certain market environment.

1. Small and medium-sized enterprises, especially small enterprises, rely more on internal financing than large enterprises in the choice of financing channels;

2. In the choice of financing methods, SMEs rely more on debt financing, and mainly rely on loans from financial intermediaries such as banks;

3. The debt financing of small and medium-sized enterprises is characterized by small scale, high frequency and more dependence on short-term loans with strong liquidity;

4. Compared with large enterprises, small and medium-sized enterprises rely more on the financing channels of non-financial institutions such as business credit and equipment leasing between enterprises, as well as various informal financing channels of the people.

Tips: The above information is for reference only and does not represent any suggestions.

Response time: February 7, 2022. Please refer to the latest business changes announced by Ping An Bank in official website.