Research On The Implementation Mode Of Financial Outsourcing In HT

With the continuous improvement of the GEM market, more and more public attention has been drawn to the development of small and Medium-Sized Enterprises. Because of relatively small size, low degree of specialization, low transparency of financial information, SMEs have a lot of difficulties in financing. Thus financial outsourcing is exactly the solution to the problem.Financial Outsourcing refers to outsourcing certain financial management process to external professional organizations, and it is those organizations which take over the operation and implements the management model of financial strategies. The mode differs from the bookkeeping, belonging to a higher level of business process outsourcing. Implementation of financial outsourcing enables enterprises to focus on their core business and improve core competitiveness.Although the theory of financial outsourcing has been improved fast, its applications developed rapidly in Europe and the United States. But many years later, financial outsourcing was introduced in our country, and its development is slow and even stagnant. SMEs are a major part of our enterprises, with more evident characteristics. Introducing financial outsourcing can help them concentrate on their core competitiveness, move away from their small and comprehensive development mode to gain a competitive position in the market.The article introduces the financial outsourcing connotation, advantages and risks based on the Life Cycle Theory. According to HT’s growth characteristics and stage of development, this article proposes financing strategy by analyzing the HT Company’s financial management status. Through analysis of roots of the HT financing difficulties, it points out the feasibility of the implementation of financial outsourcing in HT Company based on the development of its market in China and those successful cases in foreign countries. The purpose of this paper is to build a framework of financial outsourcing to solve the dilemma of HT’s financing difficulties. Specific methods used in this paper include:case analysis, taking HT as an example, it makes an in-depth analysis of the dilemma of HT’s financing difficulties and proposes solutions and implementations of financial outsourcing; comparative analysis method, comparing the status of implementation of the international and Chinese markets, it analyzes their own characteristics and difficulties the domestic SMEs are faced with, and aims to provide recommendations on HT.This article has a strong practical significance of domestic SMEs which are growing fast and facing financial difficulties, and it can help them to design a mode of financial outsourcing. This paper creatively puts life cycle theory into practice, and provides solutions for financial outsourcing of SMEs, that is to design a practical mode for HT.