An Analysis Of The Alternative Relationship Of The Company's Main Short-term Financing Methods

Now increasingly tight economic environment,companies want stable and sustainable development,short-term financing has played a crucial role,but in the short-term financing,short-term bank loans can not meet their daily liquidity needs of enterprises.At this time,commercial credit financing as another important short-term financing,not only to ensure the sustainable development of enterprises,but also occupies an irreplaceable one seat on the Chinese financial market.Due to the impact of the policy and other factors,China’s development of commercial credit financing is not very complete,but it is also lagging behind the development of commercial credit,to a certain extent,affected the country’s economic development,many companies restrict further expand.Therefore,our commercial credit in the field of development,there is huge room to explore.The growth rate of China’s economic development is inseparable from the inevitable spread of commercial credit and perfect.Related literature for analysis of the relationship between trade credit financing and short-term bank loans have different emphases,but two theories is able to analyze the existing relationship between the two to make some guidance and support.Alternative financing theory states that: as an informal commercial credit financing,in the financial markets,the ratio of credit to bear company with reduce the dependence on bank loans,the two have some alternative effect.Market competition theory from the perspective of enterprise development also supports the alternative relationship between the two,disadvantaged businesses in order to improve their market position and share,will take the initiative as relatively strong corporate commercial credit.Therefore,the paper also focuses on the study of the existence of a certain substitution between trade credit and short-term bank borrowings.Thesis research is not only a combination of theoretical analysis,model demonstration,combined with the actual financial data of listed companies disclosure.Related research at home and abroad also provides a theoretical basis for the paper,some listed companies based on screening data,using descriptive statistics,multivariate regression models,correlation test theories proposed for further researchand feasibility studies.Through the relevant empirical and theoretical analysis demonstrates the relationship between the two alternative assumptions of authenticity,after concluded,and combined financial statement data of listed companies in recent years,as disclosed in Tianrui Group Cement Co., Ltd., analyzed the financial situation of the company,and short-term financing situation,a further demonstration of the company’s relationship hidden commercial credit financing and short-term bank loan financing between Colonial and also the paper proposes two have some alternative assumptions and theoretical relationships.Objective To investigate the relationship between the two eventually,not simply whether there is proof of their substitutes,but after the demonstration,the study gives a relatively better financing of programs or financing proposals provide a reference value for our corporate finance,but also contribute to economic development.