What is a financing treasure?

A: In a narrow sense, financing is the behavior and process for enterprises to raise funds. 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.

Broadly speaking, financing is also called finance, that is, the financing of monetary funds and the behavior of the parties to raise or lend funds in the financial market in various ways.

Financing can be divided into direct financing and indirect financing. Direct financing is a financing activity that enterprises, institutions and individuals directly act as lenders of last resort without the intermediary of financial institutions, and 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.