Research On Financing Problems Of Hongsheng Logistics Corporation

At the strong support of the reform and opening up policy, China’s small andmedium sized enterprises (SMEs) have been a rapid development, also have madeoutstanding contributions to the development of national economy. However, alongwith the development of SMEs expansion of the scale, being lack of private financefor SMEs gradually become the principal contradiction in the development ofprivate SMEs.Financing difficulties have plagued the operators and managers of the SMEs,and there are many causes for financing difficulties in the SMEs, both the SMEsthemselves factors, and the entire social and financial ecological environment factors.How to find the right financing way to help them get out of the difficulties infinancing plight has become the focus of attention of academics and practitioners.After studying on domestic and foreign literature, we analyzed the deeper reasonof financing difficulties in private SMEs of China. Due to financing problems indifferent corporate is different, in this paper, through in-depth analysis of operationsand financial position, we find out the problems of financing in Hunan Hung Shenglogistics of company, because the cooperate lack of long-term planning, lack ofendogenous financing, and finance from bank is very difficult, and should pay higherfinancing costs, lack of means of financing innovation and so on.Finally, according to the specific problems in the corporate of finance process, thepaper proposed several financing model for Hunan Hung Sheng Logistics CoLtd.,they ate debt financing, equity financing, lease financing, project financing andso on. Also the paper suggest the corporate change the financing concept to minimizethe proportion of debt financing, because the company’s balance sheet is alreadyhigh, the corporate can increase equity financing, introduce of equity investors,improve corporate governance institutions, understand and master of modernfinancial instruments, also they can use of new financing methods such as projectfinancing and lease financing, in order to avoid the high rate of company assets andliabilities resulting in financing difficulties, while improving the company’s ability torefinance. At the last, some suggestion is offerd to solve the problems of the financingdifficulities: refine companies’ corporate governance、scientific management、betterfinancial management system、Change the financing ideas。...