Capital is the premise and guarantee of enterprise operation and development, in today's socialist market economy system, first of all, if enterprises want to develop and grow, occupy a larger market share, they must solve the problem of financing difficulties, obtain sufficient financial support, for this reason, enterprises can raise funds through the issuance of stocks, bonds or bank loans; Secondly, enterprises want to improve market competitiveness and carry out diversified operations, and they also need huge funds in the process of market competition; Finally, if enterprises want to grasp the initiative of survival and development, innovation is inseparable, and each innovation requires a large amount of financial support, so enterprises need to have a further understanding of financing issues.

At present, in the rapid development of the market economy environment, the key to the success or defeat of enterprises in the market competition lies in the speed and scale of enterprise financing, therefore, financing has become a necessary means of enterprise development.

Financing management is a financial management activity in which an enterprise raises funds required for production and operation from units, individuals or from within the enterprise. Specifically, it is the behavior and process of raising funds by enterprises, that is, according to their own production and operation conditions, the status of funds held, and the needs of enterprises for future business development, through scientific prediction and decision-making, and adopting certain ways and methods to raise funds from investors and creditors from certain channels, so as to ensure the normal production, operation and management of the company.

◆ The role of corporate financing management

Capital is the first driving force for enterprise production, and whether an enterprise can obtain stable funds is the basis for achieving enterprise goals.

Today's society is a capital society, and enterprises can only obtain greater profits by creating a financing platform with wider coverage. The purpose of financing is to build a broader platform and obtain more lucrative returns. At the same time, the difference in financing methods is also the key to the profitability of enterprises, financing can reduce expenses and increase enterprise value by reducing costs; It is also possible to improve the profitability of enterprises by increasing the cost of capital; It is also possible to influence the market and increase the value of the enterprise through the difference in distribution methods. The different selection methods also reflect the risk appetite of managers, and managers should make full use of financing management to bring more value to the enterprise.

◆ Principles of corporate financing management

In order to expand production and rationally allocate resources, enterprises should understand and follow several basic principles of financing, and strive to create greater wealth for enterprises.

(1) Matching of income and risk, the principle of rationality of capital institutions.

Enterprises may encounter various risks in the process of financing, such as policy risk, interest rate risk, economic risk, management risk, integrity risk, rating risk, etc. If the enterprise does not consider the capital structure of the enterprise in the process of financing, that is, the composition and proportion of various capital sources of the enterprise, it blindly raises more financing. In the face of these risks, the company's capital chain will collapse, eventually leading to bankruptcy.

(2) The principle of lowest cost and best way.

When it comes to costs, it is necessary to consider the cost of capital and the cost of financing, the cost of capital may be raised internally or externally, and the enterprise has to pay the price for the use of funds. This article considers the cost of financing, i.e., the financing fees and usage fees that the company should bear. The financing cost of the enterprise determines the financing efficiency, the higher the financing cost, the lower the financing efficiency, the less money the enterprise makes, therefore, the enterprise should choose the best financing method to reduce costs and improve income.

(3) The demand period of funds and the principle of appropriate use period.

Different enterprises, different businesses, and different periods of demand for funds. Enterprises need to subdivide different capital needs, such as new products in the high-tech field, which take a long time to be accepted by consumers, resulting in a relatively long time for enterprises to demand funds; For some common goods, it takes less time for consumers to accept them, and the amount of capital required by enterprises is smaller, so managers need to carefully consider whether to conduct short-term financing or long-term financing.

and (4) the principle of holding control.

In today's market economy, there is a close link between corporate financing and corporate control. Enterprise financing involves the governance of the enterprise, the regulation of the control of the enterprise, the influence of the interests of shareholders and the development of the enterprise, just like the enterprise with a fixed creditor's rights and equity, the shareholder or operator is the controller of the enterprise, but in the face of bankruptcy, the enterprise can only rely on financing, and the control of the enterprise will be transferred to the hands of creditors.