The role of financial companies

1, in the management and use of funds, promoted the enterprise from extensive to intensive. Before the establishment of the finance company, there was no direct credit relationship between the member enterprises of the group company. Some enterprises often had very tight funds, while others had idle funds. After the establishment of the finance company, to a certain extent, the funds of the member enterprises were concentrated for comprehensive operation. At the same time, Hefei Finance Company can use financial means to concentrate the idle funds of domestic enterprises of the group company to avoid the occurrence of "triangle debt", thus reducing the financial expenses of the group company as a whole, improving the efficiency of the use of funds of the group company and accelerating the process of asset integration operation of the group company.

2. Timely solve the urgent need for funds of enterprise groups to ensure the normal production and operation of enterprises. After the establishment of the finance company, it knows the production characteristics of the enterprise better than the bank, and can provide emergency funds for the enterprise in time to ensure the normal production and business activities.

3. Financial companies take capital as a link and service as a means to enhance the cohesion of the group company. On the one hand, the finance company absorbs some member enterprises of the group company as its own shareholders and connects everyone with the bond of equity capital; On the other hand, the funds absorbed by finance companies have become an important source of credit funds for the member enterprises of the group company, thus further strengthening the ties between the member enterprises of the group company and forming a situation of mutual support and mutual promotion.

4. Enhance the financing function of enterprise groups and promote the development of group companies. Finance companies not only handle general deposit, loan and settlement business, but also actively develop new businesses such as bills and buyer's credit according to the development strategy and production and operation characteristics of enterprise groups, which has played a very good role in expanding sales and reducing inventory for enterprises.

5. Promote competition in the financial industry. It is beneficial for financial institutions to improve service quality and efficiency and deepen financial system reform. Among all financial institutions, financial companies are still quite weak, far from being able to compete with other financial institutions, especially banks. However, in order to survive, financial companies must win customers by improving service quality, which objectively plays a role in promoting other financial institutions to deepen reform and improve service quality.