There are two financing methods for enterprises: debt financing and equity financing. Debt financing, also known as bond financing, is a financing method for enterprises to use external funds for compensation. Including: bank loans, short-term bank financing (bills, accounts receivable, letters of credit, etc. ), short-term corporate financing bonds, asset-backed medium-and long-term bond financing, financial leasing, government discount loans, inter-governmental loans, loans from world financial organizations and private debt fund loans. For the funds obtained by debt financing, the enterprise must first bear the interest of the funds, and in addition, it must repay the principal of the funds to the creditors after the loan expires. The characteristics of debt financing determine that its purpose is mainly to solve the problem of working capital shortage of enterprises, rather than spending under capital; Equity financing means that the shareholders of an enterprise are willing to give up part of the ownership of the enterprise and introduce new shareholders through capital increase. With the funds obtained from equity financing, the enterprise does not need to repay the principal and interest, but the new shareholders will share the profits and growth of the enterprise as the old shareholders do. The characteristics of equity financing determine its wide use, which can not only enrich the working capital of enterprises, but also be used for investment activities of enterprises. The characteristic of debt financing is 1. Debt financing is only to obtain the right to use funds, not ownership. There is a cost in the use of debt funds, and enterprises with debt maturity must pay interest and return the principal. 2. Debt financing can improve the return on capital of enterprise ownership funds and has financial leverage. 3. Compared with equity financing, debt financing may bring creditors' control and intervention to the enterprise under certain circumstances, but generally it will not cause control problems to the enterprise. Debt financing analysis Debt financing can be divided into three categories according to different channels, namely: bank loans, bond issuance and private lending. The issuance of corporate bonds is strictly controlled in China, which requires not only high conditions for issuers, but also strict examination and approval. At present, only a few large state-owned enterprises have issued corporate bonds. For private enterprises, issuing corporate bonds is an unrealistic debt financing channel. Private lending is a financing behavior that is not protected by law in China's current legal system, and may even be considered as "illegal fund-raising" and punished by law. However, in reality, many small and medium-sized private enterprises are extremely active in lending through illegal and quasi-illegal gray financial institutions such as private banks and rural cooperative funds, which reflects the huge demand of private enterprises for debt financing, but the non-standard private financing determines that it cannot become the mainstream form of debt financing. Bank loan is the main form of debt financing, but for small and medium-sized private enterprises, which account for the vast majority of private enterprises, it is unthinkable for many enterprises to obtain bank loans. According to the statistics of Shenzhen Information Statistics Department, there are nearly 65,438+10,000 small and medium-sized enterprises in Shenzhen, at least half of which have never borrowed a penny from banks. About13 enterprises have loans with a total amount of less than 2 million yuan; Only a few enterprises can borrow enough money from banks. The main factor that makes it difficult for private enterprises to obtain bank loans is the current bank credit policy from the macro-policy point of view. So far, China's state-owned commercial banks' loans to enterprises are largely classified according to the nature of ownership. It is easier for small and medium-sized state-owned enterprises to obtain bank loans, but it is much more difficult for township enterprises and collective enterprises to obtain loans. Some private enterprises can't get loans from state-owned banks at all, even though they have strong credit capacity and good benefits. The main reason is the value judgment of "public" surname and "private" surname. The data shows that the contribution of state-owned economy to the national industrial added value accounts for 3 1%, and the contribution of non-state-owned economy reaches 68%. The loans obtained by non-public enterprises from banks only account for more than ten percentage points of the total. On the one hand, it shows that the utilization rate of non-public economic loans is extremely high, on the other hand, it can be seen that non-public economic funds are relatively scarce. From the micro level, the reputation of private small and medium-sized enterprises is also an important reason why banks dare not lend. Many private enterprises have many "congenital" shortcomings: there are defects in property rights system and enterprise system, and many "sequelae" need to be cured; Insufficient capital accumulation and weak development potential; Investors lack entrepreneurial experience, are blind and have low success rate; Business objectives are short-term, and some even gain short-term benefits by practicing fraud and destroying the environment; Lack of management foundation, some enterprises go into recession after rapid expansion in a short period of time. On the one hand, these conditions increase the transaction cost of banks, on the other hand, they also increase the credit risk of banks, and naturally they cannot obtain loans. Although there are many obstacles mentioned above, in the long run, bank loans will surely become the main form of debt financing for private enterprises. With the economic growth and the establishment and improvement of the market-oriented system in China, it is difficult for private enterprises to obtain loans from banks. After the mid-1990s, China gradually stepped out of the predicament of capital shortage. From 1996, banks began to show a deposit deficit. At present, the deposit deficit of banks has reached 2.3 trillion yuan. The loan pressure forces commercial banks to gradually change the credit policy based on ownership and pay attention to the economic benefits and development potential of enterprises. Many private enterprises with sound financial structure and healthy development have begun to attract the attention of banks. For example, Minsheng Bank aimed at the development of small and medium-sized private enterprises at the beginning of its establishment. Since its establishment three years ago, its Shenzhen branch has issued loans and credit lines to SMEs totaling more than 654.38+0 billion yuan. In 2000, the bank used a loan of 2 billion yuan to support the development of small and medium-sized enterprises. Over the past year, the central bank has cut interest rates many times, making the interest rate of bank loans reach the lowest level after the reform and opening up, greatly reducing the financing cost of bank loan financing and providing a good opportunity for enterprises to use bank loans. Advantages of debt financing The advantage of debt financing is that it does not involve your equity, so it does not involve your property rights and management rights. You can still maintain your own independent enterprise and project operation mode. The financial institutions that provide debt financing are all aimed at high-quality enterprises and high-quality projects, requiring enterprises to have certain credit and cash flow support, and there must be enough guarantees when debt financing, which has precisely become the difficulty of debt financing. In particular, debt financing is generally short-term and can only be used to make up for the shortage of liquidity "position", which is not suitable for new projects, especially those with long payback period and slow effect. Generally speaking, for the demand for working capital loans generated by short-term operations, enterprises should try to adopt commercial credit methods such as credit purchase to reduce the borrowing amount of short-term funds. For short-term funds that must be borrowed from outside, enterprises should make a debt repayment plan on the basis of prudent cash budget, and then obtain short-term financing (such as credit line, revolving credit agreement, etc.) at relatively favorable interest rates. ), and shall not rashly carry out short-term financing, and pay short-term debt through high-cost and high-risk long-term financing when the debt cannot be repaid at maturity. In this way, it will inevitably lead to the deterioration of the financial situation of enterprises and the increase of financial risks.