What Is Strategic Funding?

Fund-raising strategy refers to an enterprise that, under the guidance of its overall strategy, makes plans to resolve issues such as fund-raising goals, scale, structure, and methods based on analysis of the internal and external environment of the enterprise and predictions of future trends.

Fundraising strategy

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1. Commercial credit

This means that the company does not need to pay cash immediately when ordering goods or services. Instead, the seller issues an invoice or a bill to the home textile enterprise according to its special transaction conditions or the conditions of the goods. In other words, the seller provides credit to the enterprise, which allows the enterprise to open up a temporary source of funds in the form of accounts payable or bills payable. Commercial credit includes accounts payable, bills payable and commercial acceptance bills.

2. Bank credit

This refers to the use of short-term bank loans to finance short-term funds. The use of bank credit to raise short-term funds is the most common and most common method used by enterprises. There are two main types of bank credit: the first is an unsecured loan, that is, a loan without collateral as a guarantee, and the second is a secured payment, that is, the enterprise must have a collateral to secure the payment.

3. Expenses payable

The so-called expenses payable refer to the unpaid expenses payable by the enterprise. It mainly includes wages payable, taxes payable, and sometimes rents payable. Fees payable are usually not paid when incurred, but on a specified date. Payables, like accounts payable, are a type of natural financing. ^[1]