1.2.3 Financing strategies for the maturity of the enterprise
After entering the mature stage, the company's main products have been recognized by the market, and the brand recognition has been greatly improved; The level of standardization of enterprise operation and management has been significantly improved; Product sales are increasing day by day, and the overall profitability level is improving, but the marginal profitability has declined, and it is difficult to achieve rapid growth.
At the same time, the cash income of the enterprise far exceeds the cash expenditure, the enterprise has a certain financial strength, the safety of production and operation is significantly improved, and the risk is reduced.
The shortcomings lie in the fact that it is difficult for enterprises to inject more profit growth momentum into their own development, the existing funds are not fully utilized, and the ability of enterprises to borrow money is insufficient.
Enterprises at this stage can obtain financial support through debt financing. After entering the mature stage, the cash income of the enterprise is usually higher than the cash expenditure, and it can obtain a certain amount of capital accumulation in business activities; By achieving large-scale operation and standardized management, the safety of the overall operation is improved, and the company has a certain ability to repay debts, so enterprises may wish to expand financing according to their own development needs and further improve their profitability.
Debt financing is an ideal option for mature companies, such as issuing bonds to obtain more funds, without affecting the interests of the controlling shareholder, and at the same time using financing leverage to promote their own development.
In this process, the enterprise has to bear the following risks: it is unable to repay the principal and interest within the agreed period, resulting in a decline in creditworthiness; Inability to liquidate assets quickly; The interests of economic agents are affected by the instability of bond interest rates; Wait a minute.
Faced with these situations, businesses should develop solutions in a timely manner. Specifically, it determines the debt ratio according to its own actual situation, and selects bonds with a long maturity that can be converted into company shares under certain conditions.
Corporate Finance: Equity Financing× Debt Financing× IPO Listing × M&A Financing1.2.3 Financing Strategies for Enterprises in the Mature Stage are in hand, please wait a while,
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