Case Study On Financing Channel Of KF Seed Industry Company

KF is an agricultural leading enterprise in Heilongjiang Province, which is mainly engagedin research and development, production, processing, sales and services of crop seed. For along time, the money of equity financing is derived from the accumulation of internal funds.Creditors’ rights financing mainly depends on bank credit funds. At the same time, externalenterprises and the insiders of KF company provide guarantee, which brights more bank loan.At present, if the company has demands of funds, it’s first thought is creditors’ rightsfinancing, which leads to the insufficiency of other financing channels. KF company,therefore, needs to reasonably choose the financing channels, and timely solves the problemof financing difficulties.According to the research status at home and abroad, based on the relevant theories offinancing and summary of seed industry, combining with the present situation of KF companyinternal and external financing environment, this article uses SWOT method to analysefinancing environment.Therefore, based on the financing environment and financing channels,using Fisher discriminant method based on principal components, discriminanting theselection of financing channels, it comes to a conclusion that KF company should mainlyfocus on equity financing channel after2015, and three advice will be put forward: positivelybecoming listed on the new three board, sparing no effort to be listed in GEM, adhering to theimplementation of equity financing channels which give internal equity financing priority. Atthe same time, giving suggestions of positively developing variety rights pledge financing andrelying mainly on creditors’ rights financing channels while bond financing channelssubsidiary. At last, smooth financing security measures are put forward in two aspects:improving the capital usage efficiency and information credibility.