Enterprise financing refers to the movement process of financing with enterprises as the main body, which makes the supply and demand of funds between enterprises and their internal relations change from imbalance to balance. The main causes of enterprise financing risk are: 1, and the debt scale is too large. Because the interest on debt funds is paid before the enterprise income tax, the risk borne by creditors is relatively small and the required rate of return is low. 2. Unreasonable capital structure. Objectively, there is an optimal combination of capital structure. In financing, enterprises should constantly optimize the capital structure and make it reasonable until they reach the capital structure with the lowest comprehensive capital cost. 3. Improper choice of financing methods. Different financing methods will have their own advantages and disadvantages in different periods. If the choice is improper, it will increase the extra expenses of the enterprise and reduce the interests of the enterprise. 4. The term structure of liabilities is unreasonable. On the one hand, the debt period of an enterprise refers to the arrangement of short-term liabilities and long-term liabilities, on the other hand, it refers to the time arrangement of obtaining funds and repaying liabilities. 5. Improper financing sequence. In the order of financing, enterprises should rationally plan debt financing and equity financing, and pay attention to maintaining the interval. 6. The expected cash inflow is insufficient and the liquidity of assets is poor. The principal and interest of liabilities are generally required to be repaid in cash. Therefore, even if the enterprise is profitable, whether it can repay the principal and interest on time depends on whether the expected cash inflow of the enterprise is sufficient. The main strategies to prevent financing risks are: establishing an effective risk assessment and analysis model, reasonably determining the capital demand, controlling the time of capital investment, carefully choosing financing mode, striving to reduce the cost of capital, perfecting the mechanism of enterprise financing risk prevention, improving the self-strength and management level of small and medium-sized enterprises, establishing the enterprise credit guarantee system and strengthening the legal awareness of enterprises.
Legal basis:
Guiding Opinions of General Office of the State Council on Taking Multiple Measures to Alleviate the High Financing Cost of Enterprises.
Article 1 Maintain a reasonable and moderate increase in the total amount of money and credit. We will continue to implement a prudent monetary policy, comprehensively use a variety of monetary policy tools, maintain a stable and moderate liquidity, and create a good monetary environment to alleviate the high financing costs of enterprises. Optimize the base currency, moderately increase the micro-loans and rediscount for supporting agriculture, focus on structural adjustment, optimize credit investment, and provide strong support for key areas such as shantytown renovation, railways, service industry, energy conservation and environmental protection, and weak links such as "agriculture, rural areas and farmers" and small and micro enterprises. Earnestly implement the credit policy of ensuring and controlling, and do not engage in "one size fits all" for enterprises with market benefits in overcapacity industries. Further study and improve macro-prudential management indicators. Implement the "targeted cuts to required reserve ratios" measures and give full play to the role of structural orientation. (Responsible by China People's Bank)
Article 2 Restrain the unreasonable increase of financing cost of financial institutions. Further improve the corporate governance of financial institutions, and regulate the market pricing competition order by improving the internal capital transfer pricing ability and optimizing the allocation of funds, and curbing irrational competition behaviors such as disguised high-interest deposits. Further enrich the financing channels of the banking industry, strengthen the management of interbank wholesale financing, and improve the diversification of bank financing and the stability of capital sources. Vigorously promote the securitization of credit assets, revitalize the stock and speed up the capital turnover. As soon as possible, relevant guiding opinions and supporting management measures for standardizing the development of Internet finance will be introduced to promote fair competition. Further crack down on illegal fund-raising activities and maintain a good financial market order. (People's Bank of China, China Banking Regulatory Commission, China Securities Regulatory Commission, China Insurance Regulatory Commission, Ministry of Industry and Information Technology, etc.). )
Article 3 Shorten the financing chain of enterprises. Supervise commercial banks to strengthen loan management, closely monitor the flow of loan funds, prevent illegal misappropriation of loans, and ensure that loan funds directly flow to the real economy. According to the deployment of the State Council, we will strengthen the management of shadow banking, interbank business and wealth management business, and clean up unnecessary capital "channels" and "bridges". In principle, the source or application of funds for various wealth management products should be directly connected with the real economy. Effectively rectify price increases at different levels, reduce regulatory arbitrage, and guide the healthy development of related businesses. (People's Bank of China, China Banking Regulatory Commission, China Securities Regulatory Commission, China Insurance Regulatory Commission and foreign exchange bureau are responsible)
Derivative problem:
What are the influencing factors of financing risk?
Internal cause analysis of financing risk: 1, debt scale. The scale of liabilities refers to the size of the total liabilities of an enterprise or the proportion of liabilities in the total funds. The scale of enterprise debt is large, the interest expense increases, and the possibility of insolvency or bankruptcy due to the decrease of income also increases. At the same time, the higher the debt ratio, the greater the financial leverage of the enterprise = [pre-tax profit and interest/(pre-tax profit and interest)], and the change range of shareholders' income will also increase. Therefore, the larger the debt scale, the greater the financial risk. 2. Debt interest rate. In the case of the same debt scale, the higher the interest rate of the debt, the more interest expenses the enterprise bears, and the greater the possibility that the enterprise faces the danger of bankruptcy. At the same time, the interest rate has a great influence on the change range of shareholders' income, because the higher the debt interest rate, the greater the financial leverage and the greater the influence on shareholders' income. 3. Term structure of liabilities. The term structure of liabilities refers to the relative proportion of long-term loans and short-term loans used by enterprises. If the term structure of liabilities is unreasonable, such as short-term borrowing when long-term funds should be raised, or vice versa, it will increase the financing risk of enterprises. The reasons are as follows: first, if enterprises use long-term loans to raise funds, their interest expenses will be fixed for a long time, but if enterprises use short-term loans to raise funds, the interest expenses may fluctuate greatly; Second, if an enterprise borrows a lot of short-term loans and uses them for long-term assets, there may be a risk that it will be difficult to raise enough cash to repay the short-term loans when they expire. At this time, if creditors are unwilling to issue short-term loans because of the poor financial situation of the enterprise, the enterprise may be forced to declare bankruptcy; Third, the long-term loan financing speed is slow, the acquisition cost is usually high, and there will be some restrictive clauses.
External cause analysis of financing risk: 1, operational risk. Operating risk is the inherent risk of enterprise's production and operation activities, which is directly manifested in the uncertainty of enterprise's pre-tax profit and interest. Operating risk is different from financing risk, but it also affects financing risk. When an enterprise is fully financed by equity, the operating risk is the total risk of the enterprise, which is completely shared by shareholders. When enterprises adopt equity and creditor's rights financing, due to the expansion of financial leverage on shareholders' income, the volatility of shareholders' income will be greater, and the risks they bear will be greater than the operational risks. The difference between them is the financing risk. If the enterprise is not well managed, the operating profit is not enough to pay interest expenses, not only the shareholders' income will be wiped out, but also the interest will be paid by equity. In severe cases, the enterprise will lose its solvency and be forced to declare bankruptcy. 2. Expected cash inflow and asset liquidity. The principal and interest of liabilities are generally required to be repaid in cash (monetary funds). Therefore, whether the enterprise can repay the principal and interest on schedule according to the contract depends on whether the expected cash inflow of the enterprise is sufficient and timely and the overall liquidity of the assets. Cash inflow reflects the actual solvency, while the liquidity of assets reflects the potential solvency. If an enterprise makes a mistake in investment decision, or the credit policy is too lenient, it will face financial crisis if it cannot realize the expected cash inflow in full or in time to pay the principal and interest of the loan due. At this time, in order to prevent bankruptcy, enterprises can realize their assets, but the liquidity of various assets is different, among which the liquidity of cash on hand is the strongest and the liquidity of fixed assets is the weakest. The overall liquidity of enterprise assets is different, that is, the proportion of various assets in total assets is different, which has a great relationship with the financial risk of enterprises. When the overall liquidity of enterprise assets is strong and there are many assets with strong liquidity, its financial risk is small; On the contrary, when the overall liquidity of enterprise assets is weak and there are more assets with weak liquidity, its financial risk is greater. Many enterprises go bankrupt not because they have no assets, but because their assets can't be realized in a short time and they can't repay their debts on time, so they have to declare bankruptcy. 3. Financial markets. The financial market is a place for financing. The debt management of enterprises is influenced by the financial market. For example, the interest rate of debt depends on the supply and demand of funds in the financial market when loans are obtained, and fluctuations in the financial market, such as changes in interest rates and exchange rates, will lead to financing risks for enterprises. When enterprises mainly use short-term loans for financing, such as financial tightening, tight money supply, and sharp rise in short-term loan interest rates, interest expenses will increase substantially and profits will decrease. What's more, some enterprises will go bankrupt and liquidate because they can't pay the soaring interest expenses.