There are two basic financing modes for enterprises:

One is debt financing; One is equity financing. Investors are required to open an account in the securities business department for more than 18 months, be over 18 years old, and have financial assets of more than 500,000 yuan.

Most enterprises pay more attention to debt financing, that is, financing through credit companies such as banks, which is what we usually call loans. Before the emergence of equity financing, debt financing can be said to be a good financing method. By borrowing, we can expand our financial strength, and enterprises can do more things and achieve faster development. It is much faster to develop enterprises with this financing method than to expand reproduction with profit surplus. However, this financing model also has its shortcomings:

1. If the financing amount is linked to the total assets of the enterprise, it can generally only reach 50-60% of the net assets of the enterprise. If an enterprise has a large-scale development project and needs a lot of money, it is generally difficult to solve it;

2. Need mortgage and guarantee. Mortgage and guarantee are indispensable. And assets can only be mortgaged once;

3. The use cycle of funds is short. At that time, no matter how big the amount of funds is, it is possible to lend it after all the funds have been paid off (sometimes it cannot be lent).