What is the use of SME financing?
1. Financing helps small and medium-sized enterprises to obtain stable financing: through financing, small and medium-sized enterprises can not only ensure their sufficient funds, but also ensure their relatively stable financing;
2. Financing can make up for the shortage of funds needed by small and medium-sized enterprises;
3. Financing can help small and medium-sized enterprises to grow and improve their overall competitiveness. If enterprises want to grow, they must expand their business scope, explore markets, acquire resources and innovate, all of which are inseparable from a large amount of funds. Financing can provide funds for small and medium-sized enterprises and improve them in all aspects;
4. Financing can reduce the switching cost of small and medium-sized enterprises in the capital market: if small and medium-sized enterprises can continue to develop rapidly after financing, then with the expansion of their scale, they are likely to get more investment, thus improving the financing efficiency of enterprises and reducing their switching costs in the capital market, so as to obtain stable financial support during the growth of the whole enterprise.