Non-IPO Financing Risk And Its Control Of Our Country’s Small And Medium Garment Enterprises

Garment industry is China’s important livelihood industry to promote the economicdevelopment, and garment enterprises in more than90%are small and medium enterprises.Small and medium garment enterprises in stimulating local economic development, expandingforeign trade clothing, solving the employment and strengthening of national fiscal revenue hasplayed an important role. But the "financing difficulties, financing expensive" is the core issuesof having restricted the development of small garment enterprises. The main reason is thatrespecting to large enterprises, small and medium garment enterprises financing have a big risk.Capital is divided into two kinds of debt financing and equity financing, debt financing risks aremainly companies may not be able to repay the debt or damage to the interests of shareholders,equity financing risk is relatively small. For ease financing difficulties of small and mediumgarment enterprises, in addition to the strong support of governments, financial institutions andsocial capital, the small and medium garment enterprises also need to strengthen their capacity torespond to the risk. The risks to make a correct identification and assessment, strengtheningfinancing internal risk control, which is to deal with small and medium garment enterprisesfinancing difficulties and needs.As small and medium garment enterprises small, it is difficult for direct financing throughappearing on the market. Therefore, this article is written from perspective of small and mediumgarment enterprises non-IPO financing risk internal controls. At first, analysis the status anddifficulties causes of financing small and medium garment enterprises financing, describes thecurrent common small and medium garment enterprises’ non-IPO financing methods, andidentify small and medium garment enterprises’ financing risk, analysis external causes offinancing risks, and propose financing risk assessment methodologies. secondly,build non-IPO financing risk assessment system to small and medium garment enterprises, use group AHP todetermine the index weight, combine with the efficiency coefficient method for financing acomprehensive assessment of risks and use cases to verify the feasibility and effectiveness of theevaluation system; finally, This paper put forward the control measure of small and mediumgarment enterprises’ non-IPO finance risk from the aspects of strengthening small and mediumgarment enterprises own strength and improving the mechanism of corporate finance internalcontrol.