1. Inventory and accounts receivable have increased substantially, occupying working capital.
This will easily cause the enterprise's capital chain to be tense or even broken, and this effect will often affect the capital chain of upstream raw material suppliers, and it will be difficult for upstream enterprises to recover accounts receivable.
2. A large number of overdue guarantees
Once the trustee fails to fulfill his debt obligations, the guarantor will be forced to bear the responsibility for payment. The guarantee chain formed by enterprises is like dominoes, and normal enterprises will break the capital chain because of taking on too many guarantee responsibilities.
3. Blind expansion and diversification
Many enterprises blindly expand into unfamiliar industries when the economic boom is high. The return on investment of these incremental investments and new industries is often far from the expected cash flow, which brings serious risks to the capital chain of enterprises.
4. The asset price bubble burst.
If the enterprise holds a large number of bubble assets, when the asset price bubble bursts, the asset value of the balance sheet will shrink seriously and the financial situation of the enterprise will deteriorate rapidly. The decline in liquidity and asset level will significantly increase the risk that enterprises will not be able to pay off due debts.
5. The financing structure is unreasonable.
Short-term loan and long-term investment are common problems of private enterprises, and serious short-term loan and long-term investment will bring heavy pressure to the capital chain of enterprises. Once short-term loans and long-term investments are combined, blind investment or diversified investment will cause a multiplier effect of financial risks. Once the external environment changes suddenly and the money supply shrinks, it is easy to cause the capital chain of enterprises to break.
6. High financial leverage and a large number of private loans.
High financial leverage means that there are a large number of outstanding debts, which is naturally the direct cause of the break of enterprise capital chain. During the financial crisis, enterprises borrowed a lot of private loans, which was tantamount to quenching thirst by drinking poison.
7. The influence of severe external economic environment
The severe external macroeconomic environment such as the financial crisis and the European debt crisis will often have a quite negative impact on the funds of enterprises, including the sharp decline in corporate income, tight monetary policy, and suppliers' demands for payment.
8. Corporate governance factors
If the corporate governance system is not perfect, the actual controller of the company may empty the company and exhaust the company's resources; Imperfect corporate governance also makes the decision-making process lack of checks and balances, and the probability of enterprise decision-making mistakes will increase, which will lead to enterprise failure.