Rosearch On Financing Problems Of Liling Huaxin Porcelain Insulator&Electric Apparatus Co.,Ltd

SMEs play an important role in activating market, increasing employment, improving people’s livelihood, promoting the adjustment of economic structural, etc. However, due to the small size of the assets and output of SMEs, poor ability to respond to market risk, weak financial base, a lower level of financial management, once the macroeconomic fluctuate, changes in economic policy, the Government’s policy the tendency changes are easy pose a threat to its survival. Small businesses often shorter production cycle, and it is difficult to grow and develop. It can be said that the financing problems of SMEs constraints its development. Therefore, to promote the healthy sustainable development of SME, the study of SME financing issues has a significant theoretical and practical significance.Liling Huaxin Porcelain Insulator&Electric Apparatus Co., Ltd is a growth-oriented SME in the high voltage electric porcelain industry, due to the limitations of the internal and external environment constraints and conditions of the business, there are some problems urgent need to relieve in the process of financing. Based on the analysis of the financing problem of Liling Huaxin Porcelain Insulator&Electric Apparatus Co., Ltd, this article adopts the research method of combining the theory with case analysis. By collecting relevant information of Huaxin, and then making comparison and induction, the thesis carries out deep analysis and research on financing problems of Huaxin, thus paves the way for making the financing strategies.In this paper, ratio analysis and comparative analysis method are used to study the financing situation of Huaxin on three aspects of the financing environment, financing way and financing ability. The financing problem is mainly exposed to the poor external environment, the irrational financing structure, the high cost of financing, low level of corporate credit and lack of long-term financing planning, etc. To solve these problems, Huaxin should seek a favorable external environment actively, and make efforts to enhance the company’s financing ability in order to optimize the current financing situation. This paper argues for optimizing growth financing situation of SMEs such as Huaxin, in addition to the company’s own efforts need the full support and cooperation of the parties, to reach a vision to improve SMEs’financing problems.