Personal financing in a broad sense refers to an economic behavior in which funds flow among holders to make up for gaps. This is a two-way interaction process of funds, including the inflow of funds (the source of funds) and the lending out (the use of funds).
Financing in the narrow sense of personal financing only refers to the integration of funds.
Personal financing is mainly before and during the business. When a feasible business plan has been formed and ready to be put into action, it is found that there is insufficient funds. If the funds are available, the business can be launched immediately. For example, if you want to open a small-scale laundromat near a residential area, you need 40,000 yuan in funds, but you only have 20,000 yuan in your hand, and there is a gap of 20,000 yuan. This requires financing. Another example is that you run a small store and find that a certain type of product will be popular in the area in the near future, so you plan to buy it. However, since the funds are all occupied by existing commodities, it is no longer possible to purchase new commodities, and financing is also required at this time. Of course, there are financings for various purposes. Due to the differences in the amount of funds, time, and cost of different financing methods, operators must consider which financing method is most suitable for them.
One is the common way of financing is personal loans. If you have a good project you want to manage, the first thing you think of is to borrow money from relatives and friends. This financing method is best for projects with less capital and less risk, and it is suitable for simple production and operation and the initial stage of capital accumulation. But the disadvantage is that once the business loses money, it will be shameless to face relatives and friends.
The second is “financing” by shareholders. After all, those relatives and friends who are rich are a minority. And considering that in some cases, acquaintances are not easy to handle, so you can consider finding a suitable investment partner. In the past, investment partners were mainly found in the region, but now the transportation and communication tools are very convenient, and it is possible to find investment partners at home and abroad. After confirming a business project, if you have no funds, you may consider sacrificing part of your interests to others in exchange for a certain amount of funds to achieve the purpose of starting operations and making profits.
In a broad sense, all financing activities for the construction of a new project or the acquisition of an existing project, or the debt restructuring of an existing project can be called project financing. In a narrow sense, project finance refers to a non-recourse or limited recourse financing or loan activity that is secured by project assets, expected income or equity. The project financing, we generally refer to only refers to the concept in a narrow sense.
Enterprise financing refers to the enterprise starting from its own production and operation status and the use of funds, according to the needs of the enterprise’s future operation and development strategy, through certain channels and methods, using internal accumulation or raising funds required for production and operation from investors and creditors of the enterprise an economic activity. Enterprise financing refers to the activities in which enterprises raise funds necessary for their survival and development through various channels and methods. Funds are the blood in an enterprise and a necessary condition for an enterprise to carry out production and operation activities. Without sufficient funds, the survival and development of an enterprise cannot be guaranteed. Enterprise financing refers to the financial activities in which an enterprise raises funds needed for production and operation from relevant external units and individuals as well as from within the enterprise. Organizational innovation refers to changes in organizational rules, transaction methods, means or procedures. Enterprise financing generally refers to the long-term source of funds for non-financial enterprises. Under market economy conditions, enterprise financing methods can be generally divided into two types: one is internal source financing, that is, transforming the accumulated funds available for use into investment the process of. The development of an enterprise mainly depends on whether it can obtain a stable source of funds. Enterprise financing mainly refers to the financing behavior of enterprises in the financial market. Therefore, corporate financing is closely related to the capital supply system, financial market, financial system and credit culture.
The first is the fund organization, and the method is the dark loan of fake stocks. The so-called counterfeit stock loan, as the name implies, means that the investor invests in the project in the form of a shareholding but does not actually participate in the management of the project. After a certain period of time, the shares will be withdrawn from the project. This method is mostly adopted by foreign funds. The disadvantage is that the operation cycle is longer, and the company’s shareholder structure and even the nature of the company need to be changed. There are many foreign funds, so if you invest in this way, the nature of the domestic company will be changed to a Sino-foreign joint venture.
The second financing method is bank acceptance. The investor transfers a certain amount, such as 100 million, to the company account of the project party, and then immediately asks the bank to issue a bank acceptance of 100 million yuan. The investor takes away the bank acceptance.