How to optimize the financing structure of enterprises

Through a simple analysis of the current situation of financing of small and medium-sized enterprises, this article points out that small and medium-sized enterprises have a single indirect financing method, a lack of direct financing channels, and an imperfect credit system. The lack of corresponding legal and regulatory guarantee systems and the lack of financial institutions to serve small and medium-sized enterprises are the main problems in the financing of small and medium-sized enterprises in my country. Analyzing the reasons and starting from the perspectives of policy system, direct financing, indirect financing, etc., the channels for enterprise financing are: Which ones? What I will tell you below is how to optimize the corporate financing structure. How to optimize the corporate financing structure Part 1

1. What are the channels for corporate financing?

(1) Loans. Loans are the main financing channel for enterprises and the most traditional financing channel. This financing method can be offset against corporate profits before tax, which can reduce corporate income tax. Of course, enterprises need to bear interest costs, which may also involve mortgages, etc. Enterprises need to consider repayment risks. Loans in a broad sense also include credit loans. Enterprises can use bank credit to obtain loans without providing collateral. In addition, loans from non-bank financial institutions also fall under the category of loans.

(2) Borrowing. Enterprises can borrow funds from other market entities with sufficient funds and then use these funds for development. These social entities are enterprises or even individuals, but they need to pay attention to the requirements of financial accounting standards, etc. Large-amount loans from other enterprises can be made through entrusted borrowing, which is safe, formal and reliable.

(3) Listed. Going public is one of the common financing methods for large companies, which can raise large amounts of funds through the stock market. At present, in addition to the main board, GEM, etc., in addition to the Shenzhen Stock Exchange and the Shanghai Stock Exchange, the country is vigorously developing the New Third Board, which provides great convenience for small and medium-sized enterprises in financing, and the cost of listing on the New Third Board is lower than that of the main board. Time is fast and it is a very good choice.

(4) Equity. For companies that cannot be listed, they can obtain funds by obtaining venture capital by discounting their equity. Financing can also be obtained through equity transactions.

The financing channels of enterprises are not limited to the above. Financing from affiliated enterprises, internal financing, etc. are all feasible financing channels, and enterprises can choose according to the actual situation.

2. What are the corporate financing techniques?

First of all, when a company is financing, it must fully consider the risks that may be brought about by financing, and whether the property pledged by the company will have any impact on the operation of the company. impact and whether there are unnecessary legal risks.

Secondly, enterprises must comprehensively evaluate the impact of various financing channels on financial accounting, whether they can offset the tax base, and whether they can optimize the annual financial plan.

Finally, the scale of corporate financing must be appropriate. First, the financing scale is consistent with the company's capital needs. Excessive funds will bring excessive financing costs; second, if it exceeds the company's own financing scale, it may also affect the company's loan repayment and operating strategies.

3. How to optimize the financing structure of enterprises?

It is necessary to vigorously develop multi-level capital markets and provide more direct financing with low cost, convenience and long repayment period to provide small and micro enterprises with The company provides a full range of financial services.

(1) Actively utilize capital market financing. Support local governments to standardize the development of regional equity trading markets and improve the multi-level capital market system. It is necessary to vigorously encourage enterprises to list and raise funds in multi-level capital markets such as the "New Third Board" and regional equity trading markets, and promote qualified listed enterprises to transfer to higher-level trading markets. Increase the government's incentives for companies listed on different trading markets and mobilize the enthusiasm of companies for direct financing. By the end of 2014, Wuhan Equity Custody and Trading Center had 356 listed companies, 556 registered and custodian companies, and 1,835 companies of various types on display, achieving a total financing amount of 11.197 billion yuan, effectively improving the financing structure of small, medium and micro enterprises.

(2) Promote the development of venture capital. Vigorously develop angel investment, venture capital, industrial investment and various private equity investments and public funds, and provide full life cycle equity financing services for small and micro enterprises at different growth stages. Support qualified venture capital companies, equity investment companies, and industrial investment funds in issuing corporate bonds to enhance their ability to serve small and micro enterprises. In order to promote the development of various funds, it is recommended to establish a venture capital guidance fund of funds at the national and provincial levels with government investment or equity participation. The fund of funds will establish a number of industrial funds by attracting social capital, and the government will determine the investment direction.

(3) Expand the scale of bond financing. Strengthen debt financing guidance for small and micro enterprises and encourage qualified small and micro enterprises to raise funds through the inter-bank bond market. Vigorously promote regional collective bonds, small and medium-sized enterprise collective bonds and other debt financing tools that meet the financing needs of small and micro enterprises. Establish and improve the credit enhancement mechanism for debt financing of small and micro enterprises, reduce the debt costs and debt financing risks of small and micro enterprises, and steadily expand the scale of debt financing of small and micro enterprises. How to Optimize the Financing Structure of Enterprises Part 2

In the process of rapid development of small and medium-sized enterprises, they are faced with many difficulties, among which financing difficulties are a common problem that hinders the development of small and medium-sized enterprises. Government departments at all levels and the financial system have made a lot of efforts to solve the financing problems of small and medium-sized enterprises, but difficulties still exist.

At present, the basic characteristic of SME financing is narrow financing channels, which is mainly reflected in the fact that bank loans are still the main financing channel for SMEs. A survey by the People's Bank of China in August last year showed that 98.7% of the financing of China's small and medium-sized enterprises came from bank loans; the "polarization" of credit activities of small and medium-sized enterprises has become increasingly obvious, with good returns

Small businesses are increasingly becoming the customers that financial institutions compete for. Small and medium-sized enterprises that are not in very good condition are either left out or shut out due to guarantee or mortgage conditions. Private enterprises are more difficult to obtain loans than state-owned enterprises; direct financing channels Lack of, due to the imperfect venture capital system, the lack of a complete legal protection system and government support system, which affects the exit of venture capital, and it is difficult for small and medium-sized enterprises to raise equity through equity financing; other financing channels are also very narrow. Although my country has established an innovation fund for technology-based small and medium-sized enterprises and international market development funds, but due to their small number and limited service scope, it is difficult to meet demand. Financing difficulties not only inhibit the development of small and medium-sized enterprises, but also are not conducive to stimulating the entrepreneurial enthusiasm of the whole society, slowing down the process of my country's economic and social development.

Although the financing problems of small and medium-sized enterprises are mainly due to narrow financing channels, when solving the financing difficulties of small and medium-sized enterprises, we should not just focus on banks, but should focus on building an effective, multi-level financing system, from indirect Financing and direct financing will be started at the same time. The underlying reason behind the difficulty in getting loans is information asymmetry. Many small and medium-sized enterprises in our country are non-state-owned enterprises, and many small and medium-sized enterprises have irregular management and chaotic accounts, which results in high loan management costs and high risks. As a result, the credit of small and medium-sized enterprises, especially private enterprises, is relatively low, which has led to the phenomenon of so-called ownership discrimination. Therefore, from their own perspective, small and medium-sized enterprises must strengthen their own management, especially financial management and long-term planning, and strive for as many financing opportunities as possible. From outside the enterprise, we should vigorously develop private, local small and medium-sized financial institutions to solve the financing difficulties of small and medium-sized enterprises. Accelerate the construction of the service system for small and medium-sized enterprises, establish a complete service organization system for small and medium-sized enterprises nationwide, actively promote the construction of the credit system for small and medium-sized enterprises, and give full play to the role of guarantee institutions for small and medium-sized enterprises. This will also help to overcome the factors of information asymmetry and provide services for small and medium-sized enterprises. Corporate financing provides information support.

At the same time, while expanding indirect financing channels, we must pay full attention to the expansion of direct financing channels. This is the fundamental way to solve the current financing bottleneck of small and medium-sized enterprises. Enterprises require different financing methods at different stages of their life cycle. For example, equity financing is more suitable for start-up and growth periods, while debt financing is more suitable for enterprises entering a stable period. At present, the development of direct financing has been taken seriously. The Third Plenary Session of the 16th Central Committee of the Communist Party of China put vigorous development of the capital market at an unprecedented level. The "Decision" passed by the Plenary Session clearly stated that "establish a multi-level capital market system, improve the capital market structure, enrich Capital Market Products" is a major measure to promote the reform, opening up and stable development of my country's capital market. The establishment of a multi-level capital market can effectively and to a greater extent meet the capital needs of diversified market entities, especially small and medium-sized enterprises, and is conducive to promoting the flow and reorganization of various types of capital. A smooth modern property rights system creates conditions that are conducive to promoting the conversion of savings into investment through diversified channels, reducing financial systemic risks and reducing macroeconomic fluctuations caused by investment fluctuations.

Chinese people should be soberly aware that because many small and medium-sized enterprises in our country have evolved through the so-called "state retreat and private enterprise" movement, that is, through the "government-owned private entrepreneurs" movement, this Helping "private entrepreneurs created by the government" has neither real ability nor credibility. Therefore, it is very normal for the public to distrust such enterprises.

Therefore, the fundamental way to solve the financing difficulties of small and medium-sized enterprises is that small and medium-sized enterprises must improve their business quality and credibility, and rely on their own efforts and integrity to compete fairly in the market economy.

Here, we must appeal to the government, hoping that the government can abide by the relevant provisions of the Constitution, vigorously strengthen and support the state-owned economy, and must not ignore the relevant provisions of the Constitution and continue to allow foreign companies, private companies, and "private enterprises" A policy that enjoys super-national treatment but state-owned enterprises are actually treated unfairly.

Corporate Financing Paper

Abstract:

This article is based on the financing difficulties of small and medium-sized enterprises in my country and the current policy-oriented background of financing guarantees, combined with the development of financing guarantees for small and medium-sized enterprises in Jiangxi Province Situation, taking Nanchang credit guarantee institutions as the main research object, the analysis is carried out from the perspectives of government agencies, policy guarantee companies, commercial guarantee companies, banks, etc., by analyzing the functional role, risk control, operation mechanism types of guarantee institutions, etc., Discuss the financing guarantee issues for small and medium-sized enterprises in Jiangxi Province.

Keywords:

Financing guarantee; small and medium-sized enterprises; credit guarantee agency

1. Development status of financing guarantee for small and medium-sized enterprises in Jiangxi Province

As an important component of sustainable economic development, the financing guarantee system for small and medium-sized enterprises, which has emerged in response to their financing difficulties, has become an important focus of society.

After several years of exploration and practice, the financing guarantee institutions for small and medium-sized enterprises in Jiangxi Province have gradually formed a financing guarantee system dominated by policy guarantee institutions and increasingly developed by commercial guarantee institutions, especially Nanchang City. However, Nanchang City's financing guarantee system is still in the construction and development stage, and there are many difficulties in market operation, exposing many shortcomings. Credit guarantee institutions for small and medium-sized enterprises in Jiangxi Province have strong development momentum. However, due to the economic downturn in recent years, the number of guarantee institutions has decreased from 253 in 2011 to 153 as of June 2015. Some institutions that have false registered capital, do not focus on financing guarantee business, or are unable to carry out financing guarantee business normally due to their own strength have quietly withdrawn from the financing guarantee industry. While the number of institutions dropped sharply, business tightened. In 2015, the balance of insured liability of financing guarantee institutions was 34.22 billion yuan, and the number of insured enterprises was 9,337, a decrease of 1.01 billion yuan and 1,925 enterprises respectively from the beginning of the year. The business shrank significantly. In 2015, the compensation situation of guarantee institutions also increased significantly compared with previous years, including Jiangxi Huazhang Hanchen Guarantee Group Co., Ltd. and other well-known guarantee institutions in the industry. According to data from the Jiangxi Provincial Bureau of Statistics, in 2015 In the first half of the year, the province's new guarantee compensation was 310 million yuan, an increase of 150 million yuan over the same period last year, an increase of nearly 100%. There were 35 compensation guarantee institutions, and the guarantee compensation rate was 2.3%, an increase of 1 percentage point over the same period last year.

2. Main problems existing in financing guarantees for small and medium-sized enterprises in Nanchang City

(1) Guarantee institutions have insufficient self-owned funds, are small in scale, and have a single operating model. Access to guarantee institutions in Nanchang City The threshold is not high, the registered capital is mostly concentrated below 100 million yuan, the scale is generally small, and there is no scale effect in operations. Once a guarantee institution encounters poor management or a bleak market that causes the capital chain to break, it is easy for the guarantee institution to go bankrupt and the person in charge to be unaware of the fate of the institution. This not only seriously harms the interests of small and medium-sized enterprises, causing their long-term development to be affected by the interruption of financial circulation; at the same time, some banks may raise the threshold for financing guarantees and reduce cooperation with guarantee companies, making it more difficult for guarantee companies to survive. On the other hand, due to the high risks and difficulty in making profits in the financing guarantee business, commercial guarantee institutions have not formed a sufficient scale, and the number of private guarantee institutions is very small due to standardization issues. The existing financing guarantee system in Nanchang is still dominated by policy guarantee institutions. It is difficult to create market vitality.

(2) Guarantee institutions have insufficient internal controls and lack of professional talents. Most of the existing guarantee institutions have failed to establish effective risk control and debt recovery systems. Many guarantee institutions focus all their energy on understanding and understanding the situation before financing approval. During the evaluation, there was insufficient due diligence on whether the use of funds after approval was in line with the original intention of the application, and whether the supply of funds would help the applicant company improve its operating capabilities to support its repayment of the guaranteed funds. There were many cases where the guaranteed funds were used for equity investments, etc., which were not in compliance with the financing guarantee. The phenomenon of conditions increases the risk that the guaranteed funds will need to be compensated due to poor management of the applicant company. In addition, the financing guarantee industry requires knowledge support in economics, finance, law and other aspects. However, currently, most of the middle managers of Jiangxi Small and Medium-sized Enterprise Credit Guarantee Companies still have a bachelor's degree. The scarcity of professionals who are competent in risk identification, analysis and assessment has resulted in the failure of guarantee institutions to effectively improve their ability to identify and control risks, increasing the risks of the guarantee institutions' own operations.

(3) Excessive government intervention and policy support needs to be further implemented. Nanchang’s policy guarantee institutions are mostly established with government funding and assistance. Relevant departments ignore the market rules of the guarantee institution’s business operations and do not make decisions in personnel appointments and daily work. Administrative interference in other aspects is serious. If guarantee institutions cannot be responsible for their own profits and losses, rent-seeking problems such as "relationship-based favor guarantees" and "blind guarantees" will occur, disrupting the normal order of the economic market, bringing additional risks to guarantee institutions and banks, and leading to the collapse of the guarantee system for small and medium-sized enterprises. The guarantee market mechanism cannot effectively play its role. On the other hand, although the government issues risk compensation to policy guarantee institutions every year, the support is far from enough. For commercial guarantee institutions, there is no government risk compensation, and these risks are entirely borne by themselves. As a result, financing guarantee companies are unable to have sufficient funds to expand business channels and innovate guarantee models, which is not conducive to long-term development.

(4) The risk sharing mechanism is not perfect and there is a lack of re-guarantee system. At present, in the cooperation process between Nanchang guarantee institutions and banks, the guarantee institutions almost always bear 100% of the responsibility. Jiangxi Small and Medium Enterprises Credit Guarantee Company has had three compensation cases since its opening, totaling more than 20 million yuan, and each time it was compensated in full. The lack of a risk-sharing mechanism means that once risks arise in guaranteed loans, financing guarantee institutions need to repay all principal and interest. The rights and responsibilities of guarantee institutions and banks are not equal, which violates the principle of fairness and increases the burden on guarantee institutions. At the same time, the lack of re-guarantee institutions also prevents the risk of financing guarantees from being effectively dispersed. As of May 2015, the establishment of re-guarantee institutions in Jiangxi Province is still in the discussion stage, and relevant policies are still being formulated. This seriously restricts Jiangxi Province. The development of the guarantee industry.

(5) The development environment is backward, the credit rating is lagging, and the auxiliary procedures are complicated. In terms of credit rating of enterprises, banks and guarantee agencies have their own rating systems. Guarantee agencies mostly conduct credit ratings of small and medium-sized enterprises internally. , lack of information exchange with banks. Information is not shared between the two.

There is currently a lack of authoritative institutions and external rating index systems for credit rating of guarantee institutions. When the credit status of guarantee institutions is uncertain, banks have doubts about whether the guarantee institutions can fulfill the bancassurance contract, especially for small and medium-sized enterprises evading debts. Under such circumstances, there are great concerns about whether guarantee institutions can still fulfill their reimbursement responsibilities, which seriously affects the efficiency of cooperation between banks and guarantee institutions. On the other hand, due to the imperfect relevant operating environment, the mortgage and pledge registration procedures for buildings and other land attachments, construction land use rights, etc. involved in financing guarantees have problems such as cumbersome procedures, complicated procedures, and too long duration, which reduces the ability to avoid risks. Practical operability.

3. Countermeasures for the development of financing guarantees for small and medium-sized enterprises in Jiangxi Province

(1) Strengthen the construction and internal management of guarantee institutions, reduce quantity and increase quality. Guarantee institutions should strengthen based on their own exposed problems. Self-construction, improve the internal control system of the guarantee business, strengthen the evaluation mechanism of the guarantee business, strictly standardize the business operation process, formulate scientific and rigorous decision-making procedures, establish a post-event recovery and disposal system, a risk early warning mechanism and an emergency response mechanism, and strengthen the management of guarantee projects risk assessment and management. Strive to reduce quantity and increase quality, and establish an institutional system with moderate quantity, reasonable structure, orderly competition and good operation by refining and strengthening a group of powerful and influential financing guarantee institutions.

(2) Encourage the entry of private capital and develop mixed ownership guarantee institutions. In recent years, private financing in Jiangxi Province and some credit intermediaries and business activities (shadow banking) outside the traditional banking system have become increasingly active and integrated. The resource construction of mixed ownership guarantee institutions is conducive to promoting the sunshine of private financing and making up for the shortcomings of the development of formal financial guarantees. Support private guarantee institutions to enlarge guarantee resources and strengthen guarantee strength through capital increase, merger, reorganization, etc., and encourage farmers to invest and spontaneously establish loan guarantee funds to cooperate with banking financial institutions, which will help enrich the financing guarantee operation model and alleviate financing needs. Better provide directional fund raising and management, fund matching, credit reporting, consulting and other services for small and medium-sized enterprises.

(3) Innovate financing guarantee models and improve risk tolerance. A large part of the profits of guarantee institutions in Nanchang rely on premium income, entrusted loan income and some investments in treasury bonds and corporate bonds. There are not many income channels. In this regard, the small and medium-sized enterprise credit mutual financing project piloted by Jiangxi Small and Medium-sized Enterprise Credit Guarantee Company in Fengxin County is worth learning from. The unsecured pure credit group financing model of "corporate credit + mutual risk compensation + policy guarantee" allows some companies with good credit to enter the credit mutual financing system and enjoy credit loan risk compensation and preferential policies of banks and other financial institutions, Nanchang Other guarantee institutions in the city should also try to innovate financing guarantee models in order to develop better and faster. At the same time, guarantee institutions can appropriately increase risk tolerance on the basis of improving the guarantee business evaluation mechanism, and more fully utilize the leverage effect of guarantee funds, so that guarantee institutions can maximize their effectiveness in financing issues of small and medium-sized enterprises, thereby better promoting Solving the financing problems of small and medium-sized enterprises in Jiangxi Province.

(4) Accelerate the construction of a multi-level guarantee system and work together to promote the development of financing guarantees. Although Jiangxi Province currently has a "joint guarantee method" re-guarantee pilot, the re-guarantee agency is still under discussion and construction, and there is no The re-guarantee system was formally established. Relevant departments should strengthen organization and leadership to promote the construction of a multi-level guarantee system, strive to establish provincial re-guarantee institutions as soon as possible, and start studying the construction of provincial financing guarantee funds. Effectively utilize the Provincial Government Financial Affairs Office, the Provincial Small and Medium Enterprises Bureau, the Jiangxi Small and Medium Enterprises Credit Guarantee Industry Association and other units to form a joint effort to improve the guarantee compensation system, coordinate and promote the joint efforts of all parties in the supervision and information of financing guarantee business exchanges and promote the development of financing guarantees.

(5) Improve the bank-enterprise guarantee cooperation method and reasonably determine the risk sharing mechanism. At present, most guarantee institutions in Nanchang City are fully compensated, and the relatively low guarantee fees cannot fully cover the operating risks of the guarantee institutions. This unfair risk sharing model seriously dampens the enthusiasm of guarantee institutions. Therefore, on the one hand, government departments should coordinate or legislate to promote the establishment of a relatively reasonable risk-sharing mechanism between banks and guarantee institutions, guide banks to increase credit lines, encourage banks to reduce guarantee agency deposit fees, and control guaranteed loan interest rates within a reasonable range to promote the guarantee industry. development. On the other hand, study and plan to establish a government guarantee fund so that financing guarantee risks can be reasonably shared among the government, banking financial institutions and financing guarantee institutions; use provincial re-guarantee agencies to guarantee the risks of loans to banking and other financial institutions Provide reasonable compensation, promote the implementation of a reasonable and highly operational bank-guarantee business cooperation model, and expand and deepen bank-guarantee cooperation.

(6) Optimize the development environment, accelerate the construction of credit information, and focus on the training of professional talents. First, continue to implement existing support policies such as business subsidies and guarantee fee subsidies for guarantee institutions, and improve the registration capital replenishment and guarantee institutions. Guarantee risk compensation mechanism and promote the construction of financing guarantee supervision and regulatory system. The second is to speed up the construction of credit information so that the banking industry and re-guarantee institutions can provide differentiated management to cooperative financing guarantee institutions to improve the level of risk control. The third is to simplify the approval procedures for guarantee institutions to handle registration of counter-collateral mortgages and pledges, improve registration efficiency, reduce processing fees, and provide necessary assistance for the protection and recovery of their creditor's rights.

The fourth is to strengthen the construction of professional talents, introduce high-level guarantee professionals, establish university training bases, conduct regular training for financing guarantee practitioners, and organize guarantee institutions to study abroad and exchange experiences, etc., to inject fresh blood and strength into the financing guarantee industry in Jiangxi Province.

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