Study On Financing Model And Risk Management Strategies Of Our Solar PV Enterprise

Modern manufacturing enterprises have a strong demand for investment expansion in terms of initial stage and in the growth process, Enterprises also have to face the situation of shortage of funds. So Debt Financing is the important way to hold more capital and liquidity support. But now, the poor condition of the economy makes it more difficult for enterprises to access the formal banking sector capital by indirect financing. Even many enterprises due to the restricting lending and lower loan ratios of the bank facing capital chain situation.So did the situation of PV industry, the flourish of which since 2005 was created by the stimulus of domestic industry policy and the abstracting of broad foreign market. The production of a part of products of our PV industry has been on the list of global top three in 2009.Later the depression of PV industry, the global policy tightening and the generally sluggish economic situation leaded to the severe overcapacity of the PV industry of China, thus a large number enterprises had to go into bankruptcy. In 2013 the Chinese government began to focus on expanding the domestic PV market and accelerating the construction of the terminal station of the PV industry, as well as promoting the restructuring of PV industry, making outstanding enterprises bigger and stronger. All the above actions have taken a new dawn to PV enterprises. However the former indirect financing channel from bank is seriously blocked, because that the major domestic banks are more cautious to the investment and financing on PV enterprises. Therefore direct investment and financing mode attracts more and more attention of the PV enterprises.Firstly, the growing up process of PV industry in the past 10 years is scanned and reviewed in this dissertation, according to which the problems including policy, market, investment and financing generated in the development of PV industry is further studied. Then the direction, way and method to solve the encountered problem are suggested.The positive and negative influence of the domestic and abroad supporting policy and supporting measures on the PV industry are analyzed. And the method to improve domestic and local government’s PV industry is supposed to be put forward by absorbing the essence of former experience and discarding its dross, which will be an effective support to the healthy development and successful transformation and upgrading of PV industry.Then the characteristics of different investment and financing modes are introduced and the risk factors of which are researched based on the investing and financing model and risk management theory. Finally the specialty of the investment and financing requirement of PV industry enterprise is studied and discussed, as a result, how to use different investment and financing methods and how to effectively reduce the risk and promote the healthy development of PV enterprise is provided.