Research On Financing Strategy Of ZT Company

In the background of "Internet +",Internet companies develop rapidly in china.Especially the small and medium-sized ones which operate business based on Internet platform rise quickly. Because of the characters of its development and the domain which it belongs to, the financing method of small and medium-sized company is different with other companies. On the one hand, due to the small scale, lack of credit record and weak debt repayment capacity of small and medium-sized Internet companies, it's quite difficult for them to get financing and it's financing channel is narrow. On the other hand, small and medium-sized companies need constant financial support, especially during their start-up stage which demands for large funds and resembles a continuous process of "burning money".On account of the problems of the small and medium-sized company, such as the large financing demands, the single financing method, the low financing efficiency, as well as the high financing cost and risk, it's particularly important to put forward financing strategy which suits development of companies.On the basis of the basic theory of financing, this paper research the financing strategy of ZT company. This paper, which takes ZT Company as research object, will analyze the financing requirements from three aspects: basic situation,financial condition and financing demands of ZT Company. Then it will be the analysis of current financing condition,including the SWOT of financing environment and the current financing methods of the company. After that, the existing problems of ZT Company will be pointed out:single financing method, lack of internal financing and having difficulties to obtain external financing; following that, the reasons for those mentioned problems: one side, they are due to financial situation is not optimistic, the low credit rating, lack of mortgage assets of the company and information asymmetry; on the other side they are caused by the preference of commercial bank loans and the poor government support to small and medium-sized company.Next the paper will discuss the selectable financing methods for ZT Company, For different financing purposes and capital requirements,considering the financing costs,risks,efficiency and other factors, ZT company can apply different financing strategies, both internal capital increase financing, financing lease and other single financing strategies, and "angel investment and intellectual property pledge financing", "angel investment and equity crowdfunding" and other combined financing strategies. Finally, proposing several measures of ZT company's financing strategy implement.This article's research results have important reference value for the small and medium-sized Internet companies to reduce the financing costs, avoid financing risk, improve the financing efficiency, and broaden the financing channels.