Jd Financing Analysis And Platform Structures

It's well-known among businessmen that capital is important because sustained additional funds are required for the company's normal business activities. With the scale of production and operations expanding, more and more funds will be needed. Therefore the company must constantly replenish its capital and add investments. There are mainly two sources of additional funds: internal financing (a company accumulates funds all by itself) and external financing such as bank loan financing, equity financing, debt financing, lease financing, project financing and credit financing. Using its own funds, of course, is the least expensive and risky method. Normally speaking, however, it's difficult for enterprises to develop relying on the accumulation of its own funds. As its own funds can not fully meet the company's need, external financing is inevitable.With China's rapid economic development, a lot of companies have emerged of which many have good prospects but cannot gain greater growth because they can not get the necessary funds to develop. Therefore, these companies have turn to the international capital market in which diversified international capital markets have become relatively mature and have enough funds as well as different financing channels and securities markets to adjust to various financiers. Some of the security markets have high requirements while some others have relatively low threshold. With a relatively better market, high quality management team and transparent financial system, a company will have the opportunity to finance by overseas listing as long as it operates according to the listing rules of the overseas stock market regardless its size and whether it has made profits.This paper mainly analyzed financing channels, financing cost and financing risks of JD company drawing on of basic financing theories, in which a specified company was used as a practical example. Qualitative and quantitative analysis were done to explore the most appropriate platform for the company. Three parts are included: First, the basic theories of company financing was presented, including the current financing channels, quantitative analysis of financing decision-making and risk analysis of companies financing. Second, we studied a specified company to find the source of financing difficulties. Third, a comprehensive financing platform suitable for the company's actual conditions was established from a perspective of more financing channels, lower financing costs and smaller financing risk.