Equity financing is a way of enterprise financing, which can strengthen the economic strength of enterprises. Equity financing requires shareholders' consent and legal procedures. I. Equity financing process of finance company 1. The enterprise management authority determines the financing plan and authorizes the person in charge, or the shareholders' meeting authorizes it to the board of directors; 2. Conduct basic due diligence by yourself, and hire external professional financial consultants to assist when necessary to prepare the company's basic introduction materials or business plan; 3. Introduce investment institutions for preliminary negotiations; 4. After signing the confidentiality agreement, interested investment institutions conduct due diligence; 5. Communicate and negotiate until the final investment plan is determined and the investment agreement is signed; 6. The board of directors of the company and the board of directors complete the necessary decision-making procedures; 7, the funds in place, for capital verification, industrial and commercial change registration procedures. Second, the advantages of equity financing Equity financing has the following advantages in enterprise investment and operation: 1. Equity financing needs to establish a relatively perfect corporate governance structure. The corporate governance structure of a company is generally composed of shareholders' meeting, board of directors, board of supervisors and senior managers, which form multiple risk constraints and rights balance mechanisms. It reduces the business risk of enterprises. 2. In modern financial theory, the securities market, also known as the open market, refers to the trading of standardized financial products in a wide range of institutionalized trading places under certain market access, information disclosure, fair bidding and market supervision systems. The corresponding loan market, also known as the agreement market, means that in this market, the financing activities of both borrowers and borrowers are directly agreed. In financial transactions, people pay more attention to the openness and availability of information. Therefore, the securities market is superior to the loan market in terms of information openness and capital price competitiveness. 3. If the borrower occupies a large share in the ownership structure of the enterprise, the possibility of using enterprise loans to engage in high-risk investment and moral hazard will be greatly reduced. Because if you do this, the borrower will suffer huge losses, so the greater the net asset value of the borrower, the greater the motivation for the borrower to act according to the wishes and wishes of the lender, and the less likely the bank will default and lose its debts. The above is the equity financing process of the finance company. Financing is of great significance to the development of enterprises. Without sufficient funds, it is only a pipe dream for enterprises to grow.