Hunan Jiutian Technology Co., Ltd. Financing Strategy Study

After30years of reform and opening up, SMEs (small&median enterprise)achieve a huge development in China and play an important role in the nationaleconomy. In China, SMEs have become the important power to drive the nationaleconomy's sustained development, build the main body of market economy, andpromote social harmony and stability. However, as the most of the SMEs, JiutianTechnology Co., Ltd.'s major problem is funding from its inception. Availability ofstable sources of funds?timely and sufficient to raise production funds required for allbusiness operations and development are crucial?and the intense market competitionforces firms need to have good financial decision-making programs to addressbusiness.This paper begins with a brief introduction of the financing theory researchstatus at home and abroad?and then analyses the external and internal financingenvironment of Jiutian Technology Co., Ltd. combined with its own situation. Afterthe analysis of the Jiutian's financing environment, the company's financial status,funding requirement are analyzed?and the paper studies the company's financingstrategy from endogenous financing and external financing two major aspects. Andfinally in this paper, strengthen the enterprise system construction, strengthen internalmanagement, improve the internal financing capacity, establish modern enterprisemanagement concepts, to enhance the management level, strengthen technologicalinnovation and cultivate creative talents are brought are brought out as the safeguardmeasures of the financing strategy, and then draw the conclusion.Through analysis, the paper argues that the Jiutian company should strengthenthe sense of self-accumulation, take full advantage of retained earnings anddepreciation and other internal financing manners to improve its own internalfinancing capacity. Meanwhile, the company need to optimize its debt structure,change the status of only short-term debt financing, and develop medium and longterm debt financing instruments, for more long-term bank borrowings, and try toapproach through the issuance of corporate bonds for financing. The company alreadyhas listed the basic conditions for a great chance of going public successfully in thefuture, it is very significant to the company. But the listing has a great impact oncorporate structure, the company should prepare in advance, so the timing of the company listing must be weighed carefully. In addition, the company will alsoactively develop other means of financing, in particular, make full use of commercialcredit financing and finance lease financing and other means to further ease thepressure on the company's funding needs.