How To Use Partners Financing Achieve Rapid Growth For Suning Appliance

Suning Appliance use the advantage position in the industrial chain, establish a strong good business model, financing large-scale funds from business partners, achieve rapid growth in the past 10 years. Partner financing is a major source of Suning's capital, it support more than 50% funds for the development of Suning. Suning use these funds expand actively. The rapid scale offset the negative impact of single-store sales. and further strengthen their own advantageous position. Through these, Suning achieve a good circle.Financing partners is one of widely used forms in the finance of enterprise, It accompanies with business. When it financing, no need to be audited, without disclosure financial and management information to commercial partners, without having to pay interest or haven't financial costs, and the repayment period isn't very clear. Partners financing will also have some negative impact, such as the deterioration of partnerships, decrease the company's gross profit margin. If the scale is too large, the government may intervene in it.Foreign counterparts haven't pay enough attention on partners financing in past years. They focus on the financial debt financing and the company's gross margin. They started to learn from Chinese counterparts'advanced experience, increase funding from business partners now. Guomei financing lavishly from partners in the past, they have to strive to improve the relationships with supplier, slow the development of the company now.Partners financing isn't unilateral benefit. Provide financial support for business partners through the easing the credit policies. We can also benefit from it if we have enough funds and properly managed. Now Suning has ability to financing more funds from financial institution. We suggest Suning use financial funds to support some outstanding suppliers when it is necessary.