Tell me about the financing channels available to companies

Legal subjectivity:

From the perspective of the source of funds raised, financing channels can be divided into internal channels and external channels of the enterprise. 1. Internal financing channels Internal financing channels of enterprises refer to the sources of funds developed from within the enterprise. There are three sources of funds from within the enterprise: the enterprise's own funds, the taxes, profits and interests payable by the enterprise, and the enterprise's unused or unallocated special funds. Generally, in corporate mergers and acquisitions, companies choose this channel as much as possible, because this method has good confidentiality and the company does not have to pay external borrowing costs, so the risk is very small, but the amount of funding sources is related to the company's profits. 2. External financing channels External financing channels refer to the sources of funds developed by enterprises from the outside, which mainly include: professional bank credit funds, non-bank financial institution funds, other corporate funds, private funds and foreign capital. Financing from outside the enterprise has the advantages of speed, flexibility and large amount of funds. Therefore, it is generally the main source of financing in the process of mergers and acquisitions. However, its disadvantage is that confidentiality is poor, and enterprises need to bear high costs, thus generating higher risks. You should pay attention to it during use. The borrowing financing method mainly refers to financing from financial institutions (such as banks), and its cost is mainly interest liabilities. Borrowing interest from banks can generally be used to offset corporate profits before tax, thereby reducing corporate income tax. There is a lot of room for financing operations from non-financial institutions and enterprises, but due to relatively low transparency, the state has limited limits on this. From the perspective of tax planning, corporate borrowing, that is, borrowing funds between companies, has the best effect. 3. Enterprise financing channels (1) Bank borrowing Bank borrowing is the most commonly used financing channel for enterprises, but the basic approach of banks is to "dislike the poor and love the rich" and take risk control as the principle. This is determined by the nature of the bank's business. For banks, they are generally unwilling to take too many risks, because banks do not have the right to claim profits when borrowing money, so they are unwilling to borrow money from risky companies or projects, even if they have high expected profits. On the contrary, companies with strong strength and stable earnings or cash flow are popular loan targets for banks. Because of the above characteristics, the main shortcomings of bank borrowing compared with other financing methods are: first, the conditions are harsh, there are too many restrictive clauses, the procedures are too complicated, time-consuming and labor-intensive, and sometimes it may not last even a year; second, the loan period is relatively It is relatively short, and it is rare to get a loan for long-term investment; third, the loan amount is relatively small, and it is difficult to obtain all the funds needed for enterprise development through banks. Especially for enterprises in the start-up and entrepreneurial stages, the risk of loans is high, and it is difficult to obtain bank loans. (2) Securities Financing Securities financing is a direct form of market economy financing, with direct and extensive public participation, the strictest market supervision and the highest requirements, and has broad development prospects. Securities financing mainly includes stocks and bonds, and capital market operations are based on this. Different from credit financing, securities financing is decided by many market participants. It is an investor-to-investor and public-to-public behavior. It is directly subject to public and market risks. Future risks are exposed and priced now, and the risks are directly controlled by investors. bear. Equity financing. Stocks can be listed domestically or overseas. They can be listed on the main board or in the high-tech enterprise sector, such as the GEM in the United States (NASTAQ) and Hong Kong. Issuing stocks is a kind of capital financing. Investors have a claim on corporate profits, but the money invested cannot be recovered. Investors take greater risks, so the expected returns required are higher than those of banks. From this perspective, stocks The capital cost of financing is higher than bank borrowing. (3) Investment promotion Investment promotion is generally a kind of equity financing, but it is not sold through the public market. It is a financing method that seeks strategic investors privately. Therefore, its advantages and disadvantages are similar to those of issuing stocks and going public. However, because there is no need to disclose corporate information and the risk of being acquired by others is small, financing through investment promotion is also welcomed by some companies. Legal objectivity:

Article 178 of the "Company Law": When a company increases capital and a limited liability company increases its registered capital, shareholders subscribe for capital contributions for the new capital, and if a limited liability company is established in accordance with this law, they pay the capital contribution. Relevant regulations are implemented. When a joint-stock company issues new shares to increase its registered capital, shareholders shall subscribe for new shares in accordance with the relevant provisions of this Law on the payment of share capital for the establishment of a joint-stock company.