Research For WG Company's Financing Problem

WG Company, as a local government financing platform, not only the WG has make a positive contribution to the economy of GaoXin district, it also has Achieved excellent results in all respects. Because recently the government conducted a strict management for the local government casts financing platform, the WG's financing has been some impacts. How to solve the financing problem is a conundrum for the company.This paper summarizes the various researches about enterprise financing at present. With the use of a combination of theory and practice, this paper tries to propose some solutions to its financing strategy on the basis of analysis. Through the analysis of WG company's financing status and financing environment, this paper arrived at the conclusion that: The company has the industry and local economic advantage in financing, but there are also other disadvantages such as the decision is subject to the government, over reliance on bank loan, the company structure is unreasonable, the financial situation is not stable. On the basis of above analysis there comes new financing methods of WG company: In the internal finance respect, WG can choose to save surplus reserve and sell off the idle assets. If the internal finance cannot met the goal, the company may consider some other ways such as bank loan extension, real estate investment trusts, debt financing instruments of non-financial enterprises. Lastly, In order to ensure the effective implementation of the new financing strategy, the company needs to take corresponding improvement in governance structure, operation mode and system building. Hoping that the research can improve the financing problems of WG Company, also provide reference for enterprise financing theory.