The Research For The Choice Of Financing Methods In Shannxi Liuhua Hotel

With the rapid development of travel hotels in our country, the competition becomes heated between the same vocation. The management rules of the travel hotels are to provide merchandise and server to the clients in the manner of fixed asserts and equipments. Therefore, we must rebuild and often update the equipment and upgrade the hardware to keep the equipment always convenience to use and new. In order to obtain enough capital, we can use the way of financing.This paper uses the method of economics and management and combines qualitative analysis with quantitative analysis to study . Via the case enterprise which is Liuhua hotel to study how to choose the financial method. Many literatures in this paper use the theories of finance in modern enterprises, such as the MM theory, financial gap theory and pecking order theory. Through concluding many major sources, structures and methods of financing faced by small and medium sized enterprises, we analysis the manage status of Liuhua hotel and other targets which affect the financing, such as solvency, payoff ability and operating ability. Through researching the choice of financing methods, the most suitable strategy for the Liuhua hotel should be as follows: firstly, based on the inside financing and depreciation fund and current income form the most part; secondly, attaching the importance of indebtedness financing, which has choice like the credit financing, non-bank financial institution financing and business credit financial. With the more open of capital market, enterprise should pay high attention to the enterprise bond financing; thirdly, we should work hard to gain the policy supports of financing, and obtain the specialties rebuild fund which is interest-free offered by the directorate. Through analyzing, we sequence the financing methods from easy to hard. And evaluates the two factors, which can infect the choice of financing methods: evasion of risk and capital structure, and also puts forward some important questions about how to enhance the capacity of the refinancing.The reserach of how to choice the financing method in Shannxi Liuhua hotel has very important significance for travel hotels, and also has reference value to the other small and medium-sized enterprises.