1, credit financing
Credit financing, refers to the entrepreneurs in order to meet the needs of its production and operation, the same financial institutions signed an agreement, to borrow a certain amount of funds, debt financing in the agreed period. Credit financing sources include policy banks, commercial banks and insurance companies. Among them, the commercial bank loans are the main channel of China's entrepreneurs access to credit funds. At present, the main commercial bank loans in the form of: four types of loans, credit loans, secured loans and bills discounted.
As the majority of commercial banks in China will target customers for high quality customers, quality of large state-owned enterprises, the entrepreneurs set a higher entry threshold, but also provide loans less species, innovation lag, price is higher, the restrictive clause, credit demand is hard to meet the entrepreneurs, small amount, high frequency a quick turnaround, strong aging. On the other hand, most of the business organization of smaller, mortgage (guarantee) products, the lack of internal management system is not perfect, management risk is big, the security risk management and financial institutions of the requirements do not match, resulting in most business organizations lack the necessary credit support. But the bank loan financing speed, lower financing costs, interest tax deduction, maturity can renew loans and other advantages, the main financing channel is still the entrepreneurs. Even though there are many difficulties, entrepreneurs have to choose cooperation from the banks, to establish a good relationship, improve the financing environment, pay attention to skills, establish a credit financing brand and so on, as far as possible for the banks to support.
2, bond financing
Bond financing, refers to a legal person enterprises to integrate into a mode of financing needed funds through the issuance of corporate bonds. Relative to bank loans, bonds financing has lower financing costs, financing deadline variety, single financing scale, fund use flexible, can expand the popularity of enterprise advantage. Relative to equity financing, bond financing has low cost, strong management constraints, corporate control, information disclosure is not affected by the pressure small, has many advantages such as "tax shield". Since 1981 the Chinese bond market started since, our country's debt financing instrument is unceasingly rich, mainly including corporate bonds, corporate bonds, convertible bonds, short-term financing bonds, ultra short term financing bonds, medium-term notes, small collection of bonds, small and medium-sized non-financial enterprises set the bill etc.. However, at present China's bond market in the state-owned enterprises account for a larger proportion of corporate bond financing, there are many limitations in the main bonds, investment main body, raise, underwriting, fund use, suitable for bond financing the venture organizations rarely. Among them, corporate bonds, corporate bonds, convertible bonds, short-term financing bonds, ultra short term financing bonds, medium-term notes mainly is suitable for the large state-owned enterprises, listing Corporation, and debt collection of small and medium enterprises and small and medium-sized non-financial enterprises set bill though changed the entrepreneurial organization can hardly bond issuance (notes) direct financing of the history, but with the conditions of the entrepreneurial organization mostly consistent with the bank lending requirements, collection of bonds (notes) superiority is not obvious. And most have good prospects for the development of the entrepreneurial organization very difficult also to meet the listing requirements, set bond (notes) financing often is the flower in the mirror.
3, private lending
The early start of the amount of capital required is small and has a high degree of uncertainty, the lack of attractive to banks and other financial institutions, private lending has become another important channel for venture capital. Entrepreneurs face equipment purchase, compensation and other emergency funding needs, through the folk lending could obtain the necessary funds, although interest rates higher, but the sensitivity of short-term emergency financing to the interest rate is low, the ability to accept the interest rate risk premium space and time.
Compared with bank credit or rural credit cooperatives, private lending procedures are simple, for flexible, convenient, entrepreneurship is a more effective way of financing. But the folk loan interest rates are higher, once the disadvantageous, is easy to fall into the abyss of usury, unable to extricate themselves. At the same time, China's laws on private lending legitimacy judgment standard is not clear, especially to large-scale investment, for the purpose of legitimate private lending and in violation of the provisions of the illegal fund-raising fuzzy boundaries, is not easy to distinguish, the folk lending while also exist system considerable risk. Therefore, entrepreneurs are borrowing, attention should be paid to calculate capital requirements, audit qualification, the parties signed loan contract, timely repayment of loans and other details of several aspects.
4, the financing lease
Financing lease is a set of financing and financial, trade and technology in one of the new financial industry. It is by the lessor according to the lessee to lease and supplier selection or recognition, lease will be obtained from the supplier of the financing lease contract by the lessor to the lessee possession, use, collect rent from the lessee, the lease period of 1 years of trading activity. Lease financing includes direct lease, after sale leaseback, leveraged lease, sublease, project financing lease, trust financing leasing form.
Financing lease procedures, convenient, flexible credit requirements of low, moderate cost, financing deadline is longer, is beneficial to reduce the tax burden, to avoid the economic risk. In contemporary social science and technology development change rapidly and entrepreneurship and financing difficult situation, entrepreneurs through financing lease, only a small amount of money can be advanced technology and equipment to achieve the desired, greatly easing the technology reform faces many entrepreneurs in the fund shortage problem, promote the upgrading of equipment.
Although the financing lease eased entrepreneurs fixed investment fund pressure to a certain extent, but the lease financing in China is still an emerging business, Finance Leasing Company and leasing business model is more a single, product structure design is relatively simple, the lessee can choose the space is limited, can not meet the financing needs of the majority of entrepreneurs. At the same time, the financing lease financing cost is higher, in the economic downturn, the financial difficulties, fixed rent paid to become a heavy burden on enterprises. Entrepreneurs through within a reasonable period after receiving demand still does not pay the rent, the lessor may require payment of the full rent, or it may terminate the contract, take back the leased property, have a great impact on the production and operation of the lessee. Leasing equipment is also difficult to performance improvement, with the passage of time, residual value of assets loss is not conducive to long-term development of faster, entrepreneurship.
5, trust financing
Trust financing, refers to the trust property entrepreneurs will be able to generate cash flow to "true sale" means the transfer to the ad hoc trust, the trust institution investors to raise funds, the funds to purchase the trust property set to entrepreneurs, and the trust property can be expected future cash flow to pay investors at maturity principal and interest.
Basic trust financing is the expected future earnings cash flow instead of the trust property itself, has the advantages of financing flexibility, procedure is simple, convenient and flexible, bankruptcy remote, can avoid the entrepreneurs and capital supply side of asymmetric information and credit problem of insufficient resources, is conducive to the optimization of enterprise governance structure, and enhance the liquidity of assets, to raise long-term funds. But the trust financing has the limited size of the financing, product is less, equity exit impeded obstacles.
Trust Investment Company may, according to the needs of the market, according to the different settings of trust business varieties of the purposes of the trust, the trust property or management of the trust property mode. Trust financing way is flexible, can be in debt financing, equity financing or financing structure can also be. At present, China's trust supporting financing mainly trust loans, equity fund trust, trust financing leasing, asset based securitization etc..
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