Traditional Culture Encyclopedia - Traditional customs - What is the difference in the cost of different financing methods for SMEs?

What is the difference in the cost of different financing methods for SMEs?

Cost of financing, stock-based financing is the highest, bonds are low

The larger the enterprise, the lower the cost of financing

SME financing is now very difficult, the most important is through the direct financing of the bank, the cost of financing is generally 10%-50% above the interest rate of one-year loans (i.e., 6.6%-9%), followed by private borrowing, the cost of financing 50%-100%.

Costs

Low cost, the bank is not willing to put, willing to put is private lending, the cost and high.

In addition to these two ways, the fastest financing is private debt, the cost of 9%-13%, followed by trust financing (but trust companies generally do not pick up small and medium-sized enterprises), small and medium-sized enterprises, if there is potential for development, preferred the new three boards (listed and then stock transfer financing, bank loans and so on are very convenient), and finally, if you can stay up for two to three years can IPO.