Research On Financing Strategies Of L Clothing Company Based On Sustainable Financial Growth

For Chinese SMEs,financing is an indispensable boost for business survival.The continuous development of enterprises corresponds to the gradual growth of sales revenue.Behind it is the increasing market challenge and survival pressure.Reasonable formulation of financing scale,scientific choice of financing methods,and sustainable development of corporate finance have become the face of every SME.problem.Therefore,the feasibility of implementing the concept of sustainable development in the daily fund-raising activities of enterprises is the key research target of this paper.As a production and sales apparel company,L Apparel Company has typical SME characteristics.First of all,this paper adopts the literature analysis method,first summarizes the previous theories about financing methods,financing channels,sustainable growth,etc.,and paves the way for the later case analysis.Secondly,based on previous theoretical research,L is selected.As a case study object,the apparel company analyzes the financing strategy of L apparel company from 2006 to 2012 and the rapid growth period from 2013 to 2017 from the aspects of internal financing and external financing.Then the sustainable growth model researched by Higgins is Based on the basics,in-depth analysis and analysis of L apparel company's data on the relevant factors of sustainable growth rate(SGR),and then compare the results of the integration with the company's actual growth rate(AGR)to find out the problem and analyze the cause,found L apparel company Problems in the financing strategy;finally,through the analysis of differences,propose targeted financing strategy optimization suggestions.The conclusions of this paper are as follows: When SGR is greater than or equal to AGR,L apparel company should make the following three considerations: first,increase the actual growth rate;second,improve the utilization rate of internal financing and operational efficiency;third,reduce the use of creditorship.Financing.When the SGR is smaller than the AGR,there are three suggestions: first,to increase the sustainable growth rate;second,to promote diversified external financing;third,to improve the financing portfolio.I hope that the research results of this paper can provide reference and guidance for the planning and problem solving of China's SME financing strategy.