Application Of Direct Debt Finance-company As Practice

With the deeply reform of finance market, bond market of China make a great leapdevelopment. As a result, bond issuing takes the second position in the total social financing。There are more and more financing ways, just like Loan,bond, lease, and trust loan inChinese market. Which way of finance should a company chose with considering its ownbusiness situation and financial demand, like exploring new financing ways, lower financingcost and optimizing debt structure.This paper takes company A for example, analyzes its main business and financing status.With the expanding of all parts of business, company A wants to get more working capital indebt, and want to use other ways beside loan.To make a more comprehensive accuracy and efficient decision for company A, thispaper implement AHP theory to build a quantitative financing decision-making model. Withthe output of the model, we can conclude that the most suitable way of financing forcompany A is bond. At last, this paper introduces processes of bond issuing and how tochoose underwriter、rating institute and lawyer in practice.