Research On The Financing Problems Of Small And Medium-sized Real Estate Enterprises

The housing price is the problem which people are most concerned about all the time,because it's not only related to the immediate interests of the buyers and investors but also related to the stability of the entire national economy.As one of the basic industries,the real estate industry in our country is provided with a trait of huge funds demand,long development period,etc,dominating in the economic development.In 2015,the destocking policy was adopted,the data showed all indexes of the real estate industry slightly recovered,but the situation was still grim while facing to such a large number of real estate enterprises.The proportion of small and medium-sized real estate enterprises is extremely high in China's real estate enterprise.Financing capacity is one of the core competences to the small and medium-sized real estate enterprises,in the generation of the significant reduction of industry profits and the upcoming transformation of numerous real estate enterprises,the highly effective financing capacity can ensure that the small and medium-sized real estate enterprises reduce the financing cost to provide more space for the enterprise profits and provide reasonable security for the enterprise survival.By July 2016,the domestic real estate financing environment is relatively easy,but the small and medium-sized real estate enterprises in 3rd and 4th tier cities are still facing all kinds of financing difficulties.This article will analyze the financing mode of Weihai GX Real Estate Development Co,.Ltd(GX Co.)in detail in the form of the theory combined with the case to provide effective countermeasures to those small and medium-sized real estate enterprises who are in trouble.First of all,this article expounds the definition,characteristic and development status of the small and medium-sized real estate enterprises on the basis of summarizing the domestic and foreign literatures in recent years,introducing the method of current real estate financing accordingly and illustrating the characteristic and influence factors of real estate financing.Secondly,this article chooses GX Co.as a case,describing the financial situation of enterprise from capital structure,debt paying ability,profitability and operating capacity.Meanwhile,the financing environment and financing status are analyzed in detail,concluding the problems of unreasonable financing structure,the high financing cost,and the lack of stable fund source,and analyzing the reason of those problems from the macro and micro aspects.At last,four constructive suggestions are put forward according to the financing problem which GX Co.currently exists,hoping to provide some reference for the Company.