A Research On Financing Structure And Financing Plan Of OQ Company-Limited

As the foundation of the economic development, small-medium sized enterprises are of great significance in promoting the economic transformation in China. Globalization has stimulated the communication as well as cooperation inside and outside China, which provides enormous opportunities for the SMEs to sustain a long and healthy development. But at the mean time, the globalization also confronts the SMEs with a lot of challenges from heated competition, among which source of sufficient funding accounts a lot. How to gratify the demand of continuous sufficient funding is the top one plight that SMEs has to overcome.Based on pecking-order theory, we use OQ Company-limited as a case study to analyze the financing modes used in each corresponding time periods to see the influencing factors in choosing the specific financing modes, in the hope that we can provide some valuable reference for SME companies especially the scientific and technological enterprise to choose the best financing modes during their development. Within the dramatic evolution of information and technology, financial innovation are endless, choices for financing have become even more diverse, but how to make a proper choice with regard to financing modes so as to solve the current problem of financing for enterprises as well asto provide continuous support for the future development of enterprises is the top priority for SMEs.At the first, this paper gives a brief introduction about the current situation of OQ Company-limited; a SME located in Zhejiang Province and specialized in professional facility manufacturing for fishery industry. On the base of literature review, on-the-spot investigation, means of data analysis and the questionnaire survey, we get to know the real situation confronted by the company, combing the interior micro-circumstance with the exterior macro-circumstance, so that we can have a clear image of the progressing process as well as its development situation and we also be certain about its financing needs and problems in gratifying these demands. And then, aimed at solving the existing impediments in its financing modes, we use a large base of data analysis to put forward a available way to deal with that problem and related financing modes. At last, on the light of current financing modes and according to the operation and management, financial conditions and equity structure, we come up with a proper financing mode and design a specific tactic—the New Three Board Financing Scheme Design for OQ to analyze the effectiveness of the proposed tactic.By analyzing OQ company’s financing model in different time periods in the process of its development and studying the feasibility and effectiveness of the proposed financing model tactic, we discussed various factors, which affect the OQ Company financing strategy and financing effectiveness, eventually we can provide a reference for small and medium enterprises to make effective financing decision basis.