Traditional Culture Encyclopedia - Traditional customs - What to do about the high cost of business financing
What to do about the high cost of business financing
Simply put, it means you borrow other people's money to do your own thing.
There are several forms of financing:
Financing can be divided into debt financing and equity financing, which can be subdivided into commercial credit, internal financing, equity financing, debt financing, bond financing, project financing and so on.
Difficulty in financing mainly means that the funds are not turned over - high cost and low profit.
Difficulty in financing. Mainly manifested as: can not get loans, financing expensive, financing risk, financing chaos. 90% of small and medium-sized enterprises can not get loans from the formal banking system; a large number of small and medium-sized enterprises to use private borrowing, interest rate cost is very high; all kinds of funds have to participate in the high interest loan business led to the chaos in the field of financing.
Cost inversion: the common understanding is that the market price of the product is lower than the cost price.
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