Research On The Impact Of Deleveraging On The Financing Of Private Enterprises Participating In PPP Projects

In recent years,the PPP model has been a hot topic.Since entering the stage of rapid development in 2014,small and medium-sized private enterprises have also actively participated in this business.However,as deleveraging and PPP policy standardization progressed,PPP business was contained.In the early stage,companies that neglected to participate in the corporate financing planning of PPP projects have encountered large or small financing problems.What are the impacts of deleveraging and changes in PPP policies on private enterprise financing involved in PPP projects? What are the causes of these effects? Are there corresponding countermeasures? Research on the above issues will help the benign development of private enterprises participating in PPP projects and provide references for their financing planning.This article uses the literature research method and case analysis method to clarify the operation mode of PPP business,and analyzes the policy and industry background.A representative "Oriental Garden" was selected as the case company of this study for a comprehensive analysis.The study found that the impact of policy changes on the financing of Oriental Garden is mainly manifested in a decline in financing capacity,improved financing conditions,increased financing costs,and forced changes in financing methods.The reason is mainly due to the financing risk brought by the contradiction between the huge amount of capital demand and the over-single financing method.Therefore,it is concluded that the problem of financing PPP private enterprises is not only due to external deleveraging and changes in PPP policies,but also caused by companies failing to follow the characteristics of PPP business and rational planning.According to the conclusion,the following suggestions are given: 1.Select high-quality PPP projects,make full use of the advantages of the project and the endorsement of the government;2.Reasonably regulate enterprise development and capital arrangements,and make good financing plans;3.Broaden financing channels and promote financing methods Diversification;4.Introduce strategic investors.