2007 Financing Plan Design For Jinyang Company

In the new trend that the elasticity of the macroeconomic variables, such as interest rate, exchange rate and price, becomes larger while the competition is more and more fierce in the industry, corporate finance has already played a significant role in internal management and keeping rapid growth of the company. The bank then acts as ideal assistant for the company with her expertise, rich experience and global resources. The paper designs an annual financing plan for Jinyang Company from bank's perspective.On the basis of macroeconomic analysis, company business analysis and company financial analysis, the paper concludes that the macroeconomy is optimistic, the industry the company belongs to is of great potential, and the operational and financial conditions of Jinyang Company are fine. Later in the paper, the goals and the existed problems are presented, and so is the way of thinking for the solutions. According to the solution way of thinking, the paper then makes a set of financing plan for the Company, which contains six sub-plans, i.e(.1)an accounts group, cleaning up various accounts so as to uniformly manage the accounts conveniently;(2)receivables and payables management system, reporting the breakdown of every receipt and every payment;(3)long-term RMB financing, providing facility for equipment innovation;(4)fund management plan including foreign exchange forward and interest rate swap, hedging to reduce interest rate risk and exchange rate risk;(5)trade financing, or forfeiting, facilitating capital liquidity for the company;(6)contract service guarantee, helping the company develop a new market. These plans help the Company realize her goals under controllable risk of the bank, so as to reach the goal of corporate finance.The paper, with the case of Jinyang Company, describes how the bank deals with a corporate financing case. Especially through the plan designs, the paper explains how the bank helps the company accomplish her goals with her resources and international financial market.