Xu Health: how venture financing the verge of crisis

Entrepreneurs in the pre-financing must have a clear financing strategy

"Sudden capital flow on how the problem?» "Shandong a feed company boss suddenly complained to me. From the venture since last year, training farmers, the development chain, the internal construction work in a Fengshengshuiqi, but he did not note that the rapid development of the company would have a better system of capital flow has brought too much pressure.

In fact, almost all entrepreneurs will encounter similar problems, especially the brink of crisis, entrepreneurship, finance and how effective use of funds is also a problem in the problem.

Financing Strategy

Entrepreneurs in financing before the need for a clear financing strategy, particularly the brink of crisis, especially entrepreneurs.

Clear the proceeds and financing costs. Is the cost of funds, financing is not better, entrepreneurs financing to act within our capability. Only after in-depth analysis, are convinced that use of the funds raised by the expected total revenue is greater than the total cost of financing, is necessary to consider financing. This is the decision-making enterprises for financing the primary prerequisite.

Tried to keep control of the enterprise. The financing of enterprises, especially the brink of crisis in the start-up enterprises, often corporate control and ownership of some of the loss. This not only caused corporate profits segregation, but also a direct impact on enterprise production and management autonomy, independence, making the interests of existing shareholders to huge losses and may even affect the efficiency of enterprises and the recent long-term development. The financing of enterprises it is necessary to ensure access to financing for development, but also ensure that the interests of entrepreneurs, in order to maintain strong entrepreneurial passion.

Select the most conducive to improving the competitiveness of enterprises in the mode of financing. The financing of enterprises need to find the best capital structure. For example, on the financing period, can be divided into short-term financing and long-term financing. Financing for enterprises to do the decision-making, that is, in short-term financing and long-term financing weigh between two ways, the choice of what to do, depends primarily on the use of financing and financing the risk of sexual preference.

The mode of financing

Through venture financing to ride out the storm or have become entrepreneurs in practice. Entrepreneurs commonly used means of financing major direct financing and indirect financing in two forms.

The so-called indirect financing, mainly referring to bank loans. Banks with bad money, especially for entrepreneurs. However, in certain circumstances there are exceptions, that is, you take that or collateral to obtain loans guaranteed by the circumstances, banks will still be happy to lend you the money. More suitable for the entrepreneurs are the main form of bank loans and mortgage loans secured two.

In addition to indirect financing, bank loans, many entrepreneurs have access to direct financing channels, such as equity financing, debt financing and internal funds, such as finance leases.

Equity financing is not through financial intermediaries, financing the enterprise's equity through the sale of access to a form of financing, such as the sale of stocks through access to financing. Of entrepreneurs, venture capital is a common equity financing. In China, Internet industry enterprises have received a lot of venture capital success stories.

Debt financing refers to raise funds through borrowing, capital providers to recover the principal and interest due as a creditor of the mode of financing. Private lending is a debt financing of.

Source: manager