What Are the Different Types of Corporate Finance Strategy?

The first is the IMF, which is a dark loan of fake stocks. The so-called fake stock dark loan, as the name implies, is that the investor invests in the project by way of equity but does not actually participate in the management of the project. At a certain time, the shares are withdrawn from the project. This method is mostly used by foreign funds. The disadvantage is that the operation cycle is longer, and the company's shareholder structure and even the nature of the company must be changed. There are many foreign funds, so if you invest in this way, the nature of domestic companies will be changed to Sino-foreign joint ventures.

Financing strategy

Funds are the first and continuous driving force of corporate economic activities. Whether an enterprise can obtain a stable source of funds and timely and fully raise the funds needed for a combination of production factors is critical to operations and development. But the biggest obstacle encountered in the development of many enterprises is the financing dilemma. About 80% of the surveyed enterprises, especially private enterprises, consider financing difficulties as a general or major constraint. In the start-up phase, more than 90% of the initial funds are provided by the main owners, members of the startup team and their families. Bank loans and loans from other financial or non-financial institutions play a small role. From this perspective, the importance and urgency of mastering financing strategies and practices is obvious.

1. Establish basic financing impact, financing sequence, financing cost concepts, and understand various phenomena in the market

2. Through a large number of cases, understand the various financing methods and the conditions and costs of their use, and find a financing solution suitable for them.

3. Understand the financing methods suitable for small and medium-sized enterprises

4. Understand a series of strategic choices facing the capital market in the financing process

5. Establish a clear idea of the choice of capital market, the choice of listing mode, and the operation of acquisitions and mergers, assets and financial analysis

There are three types of financing strategies:

1. Radical financing strategy. With this strategy, all the company's long-term assets and some long-term current assets are financed through long-term financing; another part of the long-term current assets and all temporary current assets are financed through short-term financing.

2. Moderate financing strategy. Refers to the use of short-term financing to raise funds for liquid assets; to use long-term financing to raise funds for long-term assets, including long-term current assets and fixed assets, so that the asset life cycle and the maturity of liabilities co-operate.

3. Conservative financing strategy. Using this strategy, the company not only uses long-term funds to finance long-term

I. The necessary theory for companies to consider funding bottlenecks

1.Capital pricing model

2,

Capitalization strategy for intangible assets

In conducting capital operations, enterprises must not only attach importance to tangible assets, but also properly value and capitalize their intangible assets. Generally speaking, the main way for famous brand advantaged companies to utilize intangible assets for capitalization is to develop brand groups with brand names as the leader, and rely on the linkage of a number of brand-name products and enterprise groups to achieve the goal of market coverage.

Franchise financing strategy

The significance of modern franchise has gone beyond this special investment method itself and has a significant impact on people's economic and cultural life. Franchising is actually adding a contractual bond to the common capital bond. The franchisor and the licensee maintain their independence and jointly benefit from the franchise cooperation. The franchisor can obtain a larger market with less investment, and the licensee can participate in sharing the investment of others, especially the benefits brought by intangible assets, at low cost.

Turnkey Engineering Strategy

Turnkey engineering refers to the construction of a factory or other engineering project by a multinational company for the host country. After the design and construction are completed and initially operated, the "key" of ownership and management of the factory or project is completely "turned" according to the contract To the other party, the other party starts business.

Turnkey project is a non-equity investment method developed after multinational companies in developed countries have blocked investment in developing countries. In addition, when they have the cutting-edge technology required by a certain market, hoping to quickly cover the market in a large area, and the available capital and other factors are insufficient, they will also consider adopting a turnkey engineering method.

Repo contract strategy

International repurchase contract management is essentially a complex of technology authorization, foreign investment, commission processing, and compensation trade that is still quite popular. It is also called "compensation investment" or "reciprocal investment".

This type of economic cooperation is generally a multinational company from a developed country that exports complete plant equipment or a patented manufacturing technology to a company from a developing country. the way. Investors can also obtain multiple benefits from production, such as the provision of machinery, equipment, parts and other products.

BOT financing strategy

BOT (Construction-Operation-Transfer) is a relatively new contractual direct investment method.

The transfer in BOT is the key to distinguishing BOT investment methods from other investment methods. A contractual or contract-equity joint venture refers to the majority of investors recovering their investment through depreciation and distribution of fixed assets before the expiration of the operating period. According to the contract, all property of the enterprise will be owned by the host country without conditions, without any additional Liquidation. In the BOT method of equity joint ventures, after the expiration of the operating period, the original enterprise is conditionally transferred to the host country. The conditions are to be agreed by the participating parties in the preliminary negotiations of the joint venture. This conditional transfer is also adopted for the transfer of sole proprietorship.

Project financing strategy

Project financing is an international medium-to-long-term loan issued for a specific engineering project. The main guarantee for a project loan is the expected economic benefits of the project and other participants' risk of construction, non-operation, insufficient returns, and debt repayment. Obligations, not the financial resources and credibility of the organizer.

There are two main types of project financing: one is non-recourse project financing, which is very risky for lenders and is rarely used; and the other is project financing with recourse, which is widely used internationally Project income is used as a source of debt repayment. In addition to the security rights that can be set on the assets of the project unit, third-party parties with a stake in the completion of the project are required to provide various guarantees. Each guarantor is responsible for the project's debts, subject to the amount of guarantee provided by each guarantor or its obligations under relevant agreements.

Project financing method

The second method of financing is bank acceptance. The investor will hit a certain amount, such as 100 million, to the project company's company account, and then immediately ask the bank to issue a 100 million bank acceptance. The investor took the bank acceptance. This method of financing is of great benefit to the investor, because he actually uses 100 million yuan several times. He can take the 100 million yuan bank and accept it at another bank for another 100 million yuan. At least 80% can be discounted. But the question is whether a bank with 100 million yuan in the company's account can issue 100 million yuan in acceptances. It is likely that only 80% to 90% of the banks will accept it. Is to open 100% bank acceptance, then the amount of funds on the company account allows you to use is still a question. It depends on the level of the company and its relationship with the bank. In addition, the biggest drawback of acceptance is that according to national regulations, bank acceptance can only be opened for up to 12 months. Now most places can only be opened for 6 months. That means you have to renew your visa every 6 months or 1 year. It takes a lot of time to spend money.

The third method of financing is direct deposit. This is the most difficult method of financing. Because making direct deposits is in violation of the rules of the bank, the relationship between the company and the bank must be particularly good. Open an account from the investor to the designated bank of the project party and deposit the specified amount into your account. Then sign an agreement with the bank. Promise that the money will not be misappropriated within the prescribed time. The bank will give the project party a loan equal to or less than the same amount based on this amount. Note: The promise here is not a pledge of the bank. He did not agree to take the money for pledge. What is agreed to be pledged is another financing method called a large pledged deposit. Of course, that financing method also has its violations of bank regulations. It is necessary for the bank to sign a commitment to guarantee that the payment will be closed 30 days before the expiry date. In fact, after getting this thing, he can take it to a bank in another place for refinancing.

The fifth method of financing (the fourth is a large pledged deposit) is a bank letter of credit. The state has a policy that a bank letter of credit issued by a global commercial bank, such as Citi, which agrees to finance the business is deemed to have an equivalent amount of deposit in the corporate account. Many companies used this bank letter of credit to make money in the past. Therefore, the national policy has undergone a slight change, and it is now difficult for domestic enterprises to use this method for financing. Only foreign-funded enterprises and Sino-foreign joint ventures are allowed. Therefore, if domestic enterprises want to use this method for financing, they must first change the nature of the enterprise.

The sixth form of financing is entrusted loans. The so-called entrusted loan is that the investor sets up a special fund account for the project party in the bank, then deposits the money into the special fund account, and entrusts the bank to lend the project party. This is a better form of financing. Usually the review of the project is not very strict, requiring the bank to make a commitment to the project party responsible for collecting interest and repaying the principal each year. Of course, those who do not repay the principal need only promise to collect interest every year.

The seventh financing method is through money transfer. The so-called direct payment is direct investment. This rigorous review of projects often requires mortgages or bank guarantees on fixed assets. Interest is also relatively high. Most are short-term. The lowest personal contact is an annual interest rate of 18. Generally above 20.

The eighth financing method is hedge funds. Now there is a type of entrusted loan on the market that does not repay principal and interest, which is a typical hedge fund.

The ninth financing method is loan guarantee. Many investment guarantee companies on the market now only need to pay more than bank interest to get much needed funds.

DEG financing strategy

German Investment and Development GmbH (DEG) is a financial institution directly under the German Federal Government.Its main goal is to assist the development of the private economy in developing countries in Asia, Africa, and Latin America, and in countries with economies in transition in Central and Eastern Europe. .

DEG's investment projects must be profitable, meet environmental protection requirements, belong to non-political sensitive industries, and have a positive impact on the country's development. The investment object of DEG must have professional management, no administrative intervention, and management must have at least 5 years of experience in related industries. Its total assets should be roughly more than 10 million Deutsche marks and less than 5 billion Deutsche marks. It should be profitable in the previous two years, have retained profits, and have an operating profit (net income / sales) of more than 5%.

Apply for World Bank IFC Unsecured Mortgage Financing Strategy

The World Bank International Finance Corporation (IFC) operates in accordance with international practices of commercial banks and invests in specific projects with stable economic returns. There are currently three main ways of working: providing project financing to businesses, helping companies in developing countries to raise funds in international financial markets, and providing consulting and technical assistance to businesses and governments. IFC helps finance projects with limited recourse project financing. IFC promotes foreign investment in China through direct project cooperation with foreign investors, assistance in project design and assistance in financing.

Financial Leasing Strategy

Financial lease refers to: the lessor enters into a supply contract with a third party (supplier) according to the request of the lessee and the specifications provided by the lessor, and the lessor obtains it according to the terms agreed by the lessee within the scope related to its interests Factory, capital goods or other equipment (hereinafter referred to as equipment), and the lessor enters into a lease contract with the lessee, granting the lessee the right to use the equipment on the condition that the lessee pays the rent.

Financial leasing is a combination of financing and financing. It is a financing method in the form of financing. It has a strong financial business color, so it is regarded as a loan related to equipment.

Set up a financial company strategy

According to China's current financial policies and regulations, powerful enterprises can set up financial companies. As a type of non-bank financial institution, enterprise group financial companies can initiate the establishment of commercial banks and related securities investment funds and industrial investment funds. To apply for the establishment of a financial company, the applicant must be an enterprise group with a series of specific conditions.

Finance companies can operate: absorbing the local and foreign currency deposits of member units, issuing financial company bonds upon approval, issuing local and foreign currency loans to member units, and providing buyer credit to purchasers of member unit products, etc. , Decide and approve business.

Eleven, industrial investment fund strategy

Investment funds are an important financing method in the current market economy. They originated in the United Kingdom and developed in the United States. At present, the global fund market has a total value of US $ 3 trillion, which is equivalent to the total global merchandise trade. Since the 1990s, the use of overseas investment funds has become a new and effective means for China to use foreign capital.

There are two main types of circulation of investment funds, one is redemption by the fund itself at any time (closed fund); the other is auction transfer on the secondary market (open fund).

XII. Strategy for restructuring and transforming non-performing commercial banks

Banks in China can be regarded as special policy resources. Enterprises can seize the opportunity to control, merge, and acquire local commercial banks in the form of bank asset reorganization. Bank asset reorganization can be divided into compulsory government reorganization and independent bank reorganization according to different organizational methods and reorganization models; reorganization measures can be asset replacement and cash purchase. In short, we strive to hold banks, restructure the holding banks, apply for listing and open domestic and foreign branches, raise huge amounts of funds to support the development of enterprises in the industry, and form a substantial industrial bank.

Thirteen, industry asset restructuring strategy

Asset restructuring is to achieve low-cost and rapid expansion of the scale of operation of advantageous enterprises in the same industry and related industries through acquisition, merger, capital injection holding, joint venture, debt transfer, joint operation and other methods, and rapidly expand production capacity and marketing network.

Fourteen, asset securitization financing strategy

Asset securitization is the latest modern financing tool other than traditional financing methods. It can effectively protect the state's interest in state-owned enterprises and infrastructure and maintain corporate stability, and solve the capital needs of large and medium-sized state-owned enterprises in the management system reform. And the form of ownership.

Asset securitization can transform illiquid assets into highly liquid cash, and convert expected asset returns in the future into currently realized cash income, and improve corporate asset-liability structures through off-balance sheet financing. At the same time, capital market, bankruptcy isolation, and credit enhancement measures are used to solve China's problems in attracting foreign investment. In particular, the use of enhancement technologies is more suitable for China's current situation.

Fifteen, employee stock ownership strategy

At present, China's joint stock companies issue new shares. In order to reflect the employees' past operating results, employee shares can be issued to employees. The amount of the company's employee shares cannot exceed 10% of the issued public public quota (A shares), and per person cannot exceed 5,000 shares; this part of the company's employee shares can be listed for circulation from the date of listing of new shares . When the company reports the application for public offering of stock materials, it is necessary to submit the number of employees approved by the local labor department and the list of employees' subscription subscriptions for shares. The China Securities Regulatory Commission will check. In the future, companies may no longer arrange for the company to publicly issue shares Amount of employee shares. Based on the success of foreign ESOP employee stock ownership plans, we propose several more realistic and feasible employee stock ownership plans: employee stock ownership meetings. According to the "Company Law", listed companies may, in accordance with the "Civil Law" and other provisions, establish a social group legal person with legal significance-an internal employee stock holding association, and use the employee stock holding association as a legal person shareholder of the company. In this employee shareholding meeting, the internal employee shareholding must reach a certain percentage, such as more than 20%. This employee shareholding will enable the employee's assets to increase in value after the company's restructuring and issuance of shares are listed.

Staff fund plan. The company's employees use cash to form a fund, and the fund assets are entrusted to professional investment companies to operate. The operation of the fund can be carried out independently, or it can be combined with the repurchase plan and the employee stock ownership plan.