Structured financing is a financial tool to provide funds for enterprises or individuals under certain conditions. It usually adopts a combination of various financing methods to meet the financing needs of customers to the greatest extent. Structured financing allows borrowers to choose different financing tools, such as interest rate or probability control products, commodity trading, issuing bonds, etc. In order to obtain the financing that best suits the needs of borrowers.

Structured financing has many advantages. One of the important advantages is that it can flexibly adjust the financing period and interest rate stability. In addition, structured financing needs a lower credit rating, because it usually uses hedging, insurance or margin to reduce credit risk. Another advantage is that it can reduce the cost of capital and tax burden. For example, structured financing can use countries with lower tax rates to reduce tax burden.

What is the application scenario of structured financing?

Structured financing is usually used for large-scale financial projects, such as large-scale infrastructure projects, energy projects, real estate transactions or portfolios. In addition, it is also suitable for the special financing needs of some small enterprises. With the advantages of structured financing, enterprises and individuals can obtain more flexible, lower-cost and more stable funds. Although structured financing has certain risks in practice, it is still a very popular financial tool and has been widely used in various industries around the world.