Bank loan is the most commonly used financing channel for enterprises, but the basic practice of banks is to "love the poor and the rich" and take risk control as the principle, which is determined by the business nature of banks. As far as banks are concerned, they are generally unwilling to take too much risks, because banks have no right to claim profits when borrowing, so they are unwilling to borrow from risky enterprises or projects, even if they have high expected profits. On the contrary, enterprises with strong strength and stable income or cash flow are welcomed by banks. Due to the above characteristics, compared with other financing methods, bank loans mainly have the following shortcomings: First, the conditions are harsh, there are too many restrictive clauses, the procedures are too complicated, time-consuming and laborious, and sometimes they may not be completed in one year; Second, the loan period is relatively short, and long-term investment can rarely be loaned; Third, the loan amount is relatively small, and it is difficult to solve all the funds needed for enterprise development through banks. Especially in the start-up and start-up period, it is difficult for enterprises to obtain bank loans because of the high loan risk.

Securities financing Securities financing is a direct form of financing in the market economy, with direct and extensive public participation, the strictest market supervision, the highest requirements and broad development prospects. Securities financing mainly includes stocks and bonds, and operates the capital market on this basis. Different from credit financing, securities financing is determined by many market participants, and it is the behavior of investors to investors and the public to the public. It is directly constrained by public and market risks, and the future risks are exposed and priced now, and the risks are directly borne by investors. Equity financing. Stocks can be listed at home, abroad, on the main board or in high-tech enterprises, such as the Growth Enterprise Market (NASTAQ) in the United States and the Growth Enterprise Market in Hong Kong. Issuing shares is a kind of capital financing, investors have the right to claim the profits of enterprises, but the investment funds can not be recovered, and investors bear greater risks, so the expected return required is higher than that of banks. From this perspective, the capital cost of stock financing is higher than that of bank loans. Investment promotion is generally a kind of equity financing, but it is not sold through the open market, and it is a private financing method to find strategic investors. Therefore, its advantages and disadvantages are similar to those of issuing shares for listing, but it is also welcomed by some enterprises through attracting investment and financing, because there is no need to disclose enterprise information and the risk of being acquired by others is small.