In a narrow sense, financing is the behavior and process for enterprises to raise funds, that is, according to their own production and operation status, capital ownership status and the company's future business development needs, through scientific prediction and decision-making, they adopt certain methods to raise funds from investors and creditors of the company, organize the supply of funds, and ensure the company's normal production needs and asset management activities.
Broadly speaking, financing, also known as finance, is the financing of monetary funds, and the parties raise funds or finance funds from the financial market in various ways.
Corporate financing is divided into
1. Provide capital
Enterprises use capital systems, mechanisms and means to obtain resources. Enterprise capital improves capital liquidity through listing, and the future value of the enterprise is close to the present stage, so that the capital-increased joint-stock system with close liquidity can be integrated into the reform opportunities of state-owned enterprises with commercial credit and brand value, and the value of state-owned assets, especially intangible assets, can be underestimated or forgotten, and shares can be purchased for joint venture hedging. Illegal financing Some large state-owned enterprises get rid of non-core enterprises when they change, and some enterprises misjudge the industrial prospects and wait for future changes. With the continuous improvement of the legal system of market economy, the capital financing mechanism and environment such as bankruptcy protection for enterprises on the verge of bankruptcy and bond financing support for mergers and acquisitions by investment banks are becoming more and more perfect.