On The Financing Of Equipment Manufacturing Enterprises And The Countermeasures

Equipment manufacturing industry is a core component of the manufacturing, which provides equipment for national economy and national defense. It is a foundation of economic development, particularly industrial development. To build a strong equipment manufacturing industry is to improve China's comprehensive national strength and the fundamental guarantee for industrialization. The equipment manufacturing industry requires substantial financial support in many aspects because of its own characteristics, such as technology development, product design, raw materials purchase, manufacturing, sales channels, terminal services and so on. Therefore, the financing of the equipment manufacturing industry has become the key to revitalization and development. The whole industry had been affected seriously by economic crisis in 2008. Both of large-scale equipment manufacturing enterprises and small and medium ones faced more serious financial problems, such as corporate repayment crisis, capital chain breaks and so on. These are major issues related to corporate survival. If there are no effective financing channels and methods, enterprises not only fail to develop, but also face bankruptcy and liquidation. It can be concluded that solving the financing problems is the key to revitalize the entire equipment manufacturing industry. This paper analyzes the reasons of why financing is difficult, and proposes suggestions on countermeasures accordingly. Furthermore, based on analysis of innovative financing channels, we try to provide some new ideas to solve the financing problems for equipment manufacturing enterprises.