The function of finance company is to improve the utilization efficiency of group funds and realize the optimal allocation of internal resources. Finance companies generally have an independent and professional fund settlement and service system, which can centrally manage the funds within the group, effectively improve the efficiency of fund use and reduce the risk of funds.
In addition, finance companies have certain advantages in external financing, which can effectively reduce financing costs. As an important member of a group enterprise, a financial company can obtain unified credit from a bank more than a single enterprise, and a group company has stronger anti-risk ability for banks.
Finance companies can also effectively control the risks of group funds, and also develop other businesses, such as supply chain and factoring, to improve the utilization channels of group funds.
What are the financial enterprises?
Financial enterprises refer to enterprises engaged in financial services, including banks, insurance companies, securities companies, fund companies and trust companies, which provide financial services to the society, support economic development and promote social harmony. This paper will introduce the types, characteristics and functions of financial enterprises in detail.
Types of financial enterprises:
1. Bank
Bank is a common financial enterprise. They are mainly engaged in financial services such as deposits, loans, payments, foreign exchange, etc., which are helpful for customers to save and invest, the flow and use of funds, and support economic development.
2. Insurance companies
Insurance companies are mainly engaged in property insurance, life insurance and other non-property insurance businesses to provide protection for customers and prevent damage due to unexpected losses.
3. Securities companies
A securities company is a kind of financial enterprise. They are mainly engaged in securities investment, brokerage business, investment banking business, financial consulting and other services, providing investors with fund management and investment advice to help investors achieve their investment goals.
4. Fund companies
Fund companies are engaged in fund management and investment management, providing investors with investment advice and helping them achieve their investment goals.
5. Trust companies
Trust companies are mainly engaged in property trust, property management, financial consulting and other businesses, providing customers with property protection, asset management and financial consulting services to ensure the safety of customers' assets.