What happened to the old hat financing case?

Financing refers to the monetary transaction means to pay the purchase price exceeding cash, or the monetary means to raise funds for the acquisition of assets. Financing usually refers to the activities of direct or indirect financing between the holders and demanders of monetary funds. Financing in a broad sense refers to an economic behavior in which funds flow between holders to make up for the shortage. This is a two-way interactive process of funds, including financial integration (source of funds) and financial withdrawal (use of funds). Narrow financing only refers to financial integration.

Financing type:

1. Financial financing. From the financing point of view, financial financing methods can be divided into: budget allocation, financial loans, state-owned assets investment through authorized institutions, policy bank loans, extra-budgetary special construction funds and financial subsidies.

2. Bank financing. From the perspective of financing, that is, the use of funds by banks, there are mainly various agency loans, such as credit loans, mortgage loans, secured loans, discount loans, financial leasing, securities investment and so on.

3. Commercial financing. There are also various ways, mainly including the forms of buying goods on credit and receiving money in advance between enterprises in the process of commodity trading.

4. Government bond financing. This method mainly includes stock standard financing and bond financing.

Financing decision-making process

The process of financing decision-making of enterprises is also the process of determining the optimal capital structure. The specific decision-making procedure is:

First of all, when an enterprise is faced with multiple financing schemes to raise a sum of money, it can calculate the weighted average capital cost of each financing scheme separately, and then choose the one with the lowest weighted average capital cost.

Secondly, the financing scheme with the lowest weighted average capital cost rate is only the best scheme among various schemes, which does not mean that it has formed the optimal capital structure. At this time, enterprises should observe investors' demand for loans and the price fluctuation of the stock market, and analyze the rationality of the capital structure according to financial judgment. At the same time, enterprise financial personnel can use some financial analysis methods to analyze the capital structure in more detail.

Finally, according to the analysis results, improve the capital structure of the enterprise in the further financing decision.

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