The Case Studies On The Financing Mode Of XSD

Financing is the selection of the company for funding sources, including equity financing and debt financing. With the development of market economy, a series of advantages included enterprise products, technology, service, market and so on depends largely on the effectiveness of the financing, and financing scale and speed determines the competitiveness of enterprises. Therefore, the various financing ways affect the enterprise’s daily operations and development prospects. Moreover, the government also gives a large number of financial support and preferential policies for small and medium-sized enterprise, which broaden the way for financing.This article uses the case analysis model on the financing problem for small businesses, XSD company is selected as the research object, which allows me for investigations on the spot. The integrated analysis of the mode of financing was carried out with reference to the financial statements and the high-level leadership statement. The main line of the paper is describing around the chronological development of company’s the actual financing situation. In view of the problems arising from the financing process and the problems of everyday activities, combined with the current economic situation, I summarize the characteristics of the XSD company financing structure, analysis reason of each question and put forward constructive suggestions.XSD company’s financing has the basic characteristics of a typical small business. First of all, there the main sources of funding are:retained earnings, supplier credit, bank loans and so on.But depending a large number of own funds started to operate and maintain a long time affect the pace of business expansion, and a shortage of funds problems gradually merge.In order to match with the enterprise scale, the bank loan become the most common way of financing for small businesses, which has brought cost pressures to the company.Then the emergence of NEEQ bring the hope for equity funds. Secondly, XSD company exists financing problem:the choice of the financing way is single; debt burden is heavy so that cost control is not accurate; equity financing is lack of preparation,and the corporate governance structure and financial standard need to strengthen. Finally, in the face of these difficult position, this paper also puts forward some countermeasures. Use of a variety of financing such as financing lease, project financing and the financing policy of the government for small enterprises to reduce the pressure of funds, while reasonably adjusting the capital structure, and then for the NEEQ for full preparation. I hope to provide a reference for the financing of small enterprises, using financial data to find out the problems and reasons of corporate finance and to provide help XSD company for the future development.