Why do enterprises need financing?

Enterprises need financing because they need funds to invest and run their businesses.

Financing can help enterprises expand their business scope, promote development, increase market share, purchase assets or conduct research and development.

In addition, financing can also reduce the cost of enterprises, because enterprises can obtain more capital through financing, thus reducing their debt ratio and managing the company's financial situation more effectively. In addition, financing can also help enterprises solve the short-term funding gap, so that enterprises can better cope with liquidity risks and emergencies. Therefore, financing is very important for the healthy development of enterprises.