The Research Of Building Sustainable Financing Capacity Based Onthe Leverage Theory

As an enterprise important source of funds, financing ability have been the core of the companies concerned. Enterprise's financing ability has become one of the keys to get advantage in the fierce competition. The mature enterprises are through various channels to build their own financing channel, but whether an enterprise can gain enough funding after that, will determine whether an enterprise can take up and keep advantage in the fierce competition. How to make the financing ability of an enterprise with strong and sustained? How to through the superposition of the existing internal force and the available external forces to form a strong financing ability also need further research.Thinking about LD industry and trade financing case, by taking a single case study as approach with the theory of leverage,our paper is to explain how to rely on internal forces and external forces constitute an effective mechanism of "borrow credit to financing" and "increase the credit with fund ", how to through the Interactive synergy process of borrowing and using fund to form a larger continued financing ability.The results show that LD industry and trade use the continuous cycle linkage and rotating rise to building strong financing ability that behind by leveraged logic between "borrow credit to financing" and "increase the credit with fund ".The process of borrow fund through "the receivable guarantee" to "support" "pledge of accounts receivable" to accomplish with the logic of borrow credit to financing. The process of use fund through "bank financing" to "promote" "ready money" to accomplish with the logic of increase the credit with fund.This study opened the financing process of "black box" and analyzes the continued financing method and way of the small and medium business enterprises. Our research provides a systematic research perspective for this type of enterprise financing. Our research not only providing supporting experience and framework for continuous financing of small and medium business enterprises, but also opening mentality for financial innovation of banks and other financial institutions.