Research On L Company’s Financing Dilemma And Its Relief Strategy

Through the methods of literature and case study,this paper takes L company as the research object,relying on the financial reports publicly disclosed by the company from 2018 to2020,makes an in-depth analysis of the company’s financial status,puts forward the existing financing difficulties of the enterprise,analyzes the causes of the current financing difficulties,and then further studies and discusses the strategies to alleviate the financing difficulties of the enterprise.This paper finds that l company has some financing difficulties,such as single financing channel,insufficient self owned funds,poor mortgage guarantee ability and difficulty in obtaining loans from banks.Therefore,the financing management needs to be further optimized.The reasons for these financing difficulties are that l company’s financing ability is not high,including less understanding of a variety of financing channels and products,lack of professional financing talents and weak financing planning,as well as the decline of L company’s profitability,shareholders’ loss of investment confidence,insufficient collateral and excessive reliance on bank loans.This paper argues that l company needs to actively seek solutions to its financing difficulties and optimize its financing management.In view of the financing difficulties,it is necessary to put forward one-to-one solutions.First,it is possible to expand the financing channels of L company and use the accounts receivable as factoring financing.First,it is necessary to analyze the feasibility of L company’s accounts receivable financing through the aging,number and quality of accounts receivable.On the basis of feasibility,it is necessary to consider daily management,mainly the credit management of the defaulter and the quality supervision of the payment,Then draw a flow chart to intuitively explain how to operate,and then actively try the financial leasing method;Secondly,due to the lack of internal funds,we should not only improve the economic benefits of L company,but also strive to attract equity financing to achieve the purpose of increasing internal funds.We can start from two aspects: cultivating potential investors and stimulating investment and financing of individuals,relatives and friends;Thirdly,due to the lack of collateral,we can promote the construction of patent pledge financing model to broaden the way of mortgage;Finally,establish a sustainable relationship between banks and enterprises,and make efficient use of the advantages of low cost and large scale of bank loans.This paper hopes to make a modest contribution to the future financing planning of L company through the research on its financing difficulties and relief strategies.At the same time,it is expected to provide some valuable enlightenment for the financing decisions of other small and medium-sized private construction enterprises.