What does enterprise financing mean?

1. What does corporate financing mean? Enterprise financing is a behavioral process of raising funds for project construction, operation and business development based on the assets, rights and interests and expected income of the enterprise. The development of an enterprise is a process of financing, development, refinancing and redevelopment. General enterprises have to go through product management stage, brand management stage and capital operation stage. With the continuous development of modern enterprises, it is more and more common for enterprises to cooperate with social professional institutions to solve their own problems. The emergence of accounting firms, law firms, financial public relations, financing consultants and other professional institutions provide professional services for all stages of enterprise development. With the continuous refinement of social division of labor, the development of enterprises has since embarked on the road of standardization. Analysis of enterprise financing refers to an economic activity in which an enterprise, according to its own production and operation situation and the use of funds, uses internal accumulation or raises funds needed for production and operation from investors and creditors of the enterprise through certain channels and methods. Capital is the blood of an enterprise and a necessary condition for its production and business activities. Without sufficient capital, the survival and development of enterprises can not be guaranteed. Enterprise financing refers to the financial activities of enterprises to raise funds needed for production and operation from relevant external units and individuals as well as internal enterprises. Organizational innovation refers to the change of organizational rules, trading methods, means or procedures. Enterprise financing generally refers to the long-term source of funds for non-financial enterprises. Under the condition of market economy, there are generally two ways of enterprise financing: one is endogenous financing, that is, the process of transforming the available funds accumulated by itself into investment. The other is external financing, which refers to the process of capital injection by external investors or investment institutions and the conversion of funds into shares. The development of enterprises mainly depends on whether they can obtain stable sources of funds, and enterprise financing mainly refers to the financing behavior of enterprises in the financial market. Therefore, enterprise financing is closely related to capital supply system, financial market, financial system and credit culture. Financing in a narrow sense is the behavior and process of raising funds by enterprises. That is, according to the company's own production and operation, capital ownership and the needs of the company's future operation and development, through scientific prediction and decision-making, the company adopts certain methods to raise funds from the company's investors and creditors and organize the supply of funds to ensure the company's normal production needs and financial management activities. The motivation of the company to raise funds should follow certain principles and be carried out through certain channels and ways. Generally speaking, enterprise financing has three purposes: want to expand, want to pay off debts, and have mixed motives. Financing in a broad sense is also called finance, that is, the financing of monetary funds and the behavior of the parties to raise or lend financing funds of enterprises in various ways in the financial market. Financing can be divided into direct financing and indirect financing. Direct financing is a financing activity conducted directly by the government, enterprises, institutions and individuals as lenders of last resort, without the intermediary of financial institutions. The financing funds are directly used for production, investment and consumption. Indirect financing is a financing activity from the last borrower to the last lender with financial institutions as the medium, such as corporate financing banks and trust companies. The outcome of enterprise competition ultimately depends on the speed and scale of enterprise financing, no matter how advanced technology you have and how broad the market is. Financing can be compared to a commodity project. The subject of the transaction is the project, the buyer is the investor and the seller is the financier. The secret of financing is to design a win-win result. China people like to find relationships in financing. Actually, it doesn't matter. The important thing is to find the right door. There are business model division of labor, professional division of labor and procedural division of labor in financing, and financiers need to design their own financing model according to the characteristics of investors. Financing is not done overnight, but a process. With regard to financing tactics, Mr. Max Fang listed eight tactics, and introduced his own special skill-circle gang. The sources of funds for financing enterprises mainly include endogenous financing and exogenous financing, in which endogenous financing mainly refers to the enterprise's own funds and the funds accumulated in the process of production and operation; Helping enterprises to finance is the external source of funds for enterprises, which mainly includes direct financing and indirect financing. Direct assistance to enterprise financing refers to the activities of initial public offering (IPO), rights issue and additional issuance, so it is also called equity financing. Indirect financing refers to debt financing activities such as loans from banks and non-bank financial institutions, so it is also called debt financing. With the progress of technology and the expansion of production scale, it is difficult to meet the capital needs of enterprises by relying solely on internal auxiliary financing. External assistance in enterprise financing has become an important way for enterprises to obtain funds. External assistance to enterprise financing can be divided into debt assistance to enterprise financing and equity assistance to enterprise financing. Fast-track enterprise fast financing channel refers to opening up sources of funds from within the enterprise. There are three aspects to open up the sources of funds from within the enterprise: the enterprise's own fast financing channel funds, the tax and interest payable by the enterprise, and the unused or undistributed special funds for the fast financing channel. Generally, in enterprise mergers and acquisitions, fast financing channel enterprises choose this channel as much as possible, because this method has good confidentiality and fast financing channel enterprises do not have to pay borrowing costs, so the risk is very small, but the amount of funds is related to enterprise profits. Fast financing channel mainly refers to the financing of financial institutions (such as banks), and its cost is mainly interest liabilities. Bank loan interest can generally offset corporate pre-tax profits, thus reducing corporate income tax. Non-financial institutions and enterprises have a lot of financing space, but because of the relatively low transparency, the state has quota control over fast financing channels. From the perspective of tax planning, the fast financing channel enterprise borrowing, that is, inter-enterprise borrowing, has the best effect. Issuing bonds and stocks to the society belongs to direct financing, which avoids the interest expenses of intermediaries in the fast financing channel. Because loan interest and bond interest can be used as financial expenses, that is, part of enterprise costs, to deduct pre-tax profits, thus reducing the income tax base, and dividend distribution should be carried out after the fast financing channel enterprises pay taxes, so there is no expense deduction problem in dividend payment, which relatively increases the tax cost. Therefore, in general, the tax burden borne by fast financing channel enterprises is heavier than that borne by borrowing from banks, and the tax burden borne by borrowing funds is heavier than that borne by issuing bonds to the society. Fast financing channels: internal fund-raising and equity financing can be exempted from personal income tax. Generally speaking, the tax burden borne by enterprises in self-accumulation mode is heavier than that borne by loans to financial institutions, while the tax burden borne by loan financing mode is heavier than that borne by financing modes such as borrowing, and the tax burden borne by inter-enterprise borrowing funds in fast financing channels is heavier than that borne by enterprises in raising shares. According to Article 15 of the Company Law: "A company may invest in other enterprises; However, unless otherwise provided by law, it shall not become an investor who is jointly and severally liable for the debts of the invested enterprise. " What does enterprise financing mean? At present, many large companies are generally small private enterprises when they are established, and the capital they set up may be only a few hundred thousand. However, in the process of operation, because of continuous development, continuous financing and redevelopment, enterprises have changed from small enterprises to large enterprises, so financing is a very important measure.