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

The real estate industry is the most capital-intensive industry.The acquisition of land management right at the initial stage of investment and the sale or self-owned management after the completion of the project are all closely related to the long-term support of capital.The stable capital chain plays a decisive role in the survival and development of real estate enterprises.Reasonable investment cost and effective control of capital risk are directly related to the long-term management of real estate companies.Since 2020,due to the impact of the new epidemic,all industries are facing the huge risk of slowing down their development.Capital-intensive small and medium-sized real estate companies have great investment difficulties and capital liquidation problems,and most of them have suffered severe blows.In this situation,a stable capital chain has become the key guarantee to sustain the operation and future development of the real estate company.LG Real Estate Company is a private small and medium-sized real estate company,in the economic downturn,its development situation is in more worrying.Therefore,the financing problem of LG Real Estate Company is selected as a representative object of study.The article summarizes the concepts and theoretical knowledge of financing and analyzes the current development status of small and mediumsized real estate enterprises.After understanding LG Real Estate Company’s profile and its financing status,we analyze its capital composition and ratio,its ability to repay principal and interest on debt,its ability to create profits for the enterprise,and its capital turnover.The problems include unreasonable capital structure,mismatched financing cycles,and poor endogenous financing capacity.Therefore,based on the problems faced by LG Real Estate Company in financing,we summarize the experience of domestic and foreign real estate enterprises in financing management and provide specific countermeasures to solve the problems faced by LG Real Estate Company in financing,including establishing a scientific and reasonable financing structure,optimizing financing time mismatch and enhancing endogenous financing capacity.This paper hopes that the suggestions on financing for LG Real Estate Company will be necessary to help them get out of their current business difficulties and also bring useful references for the production and operation of small and medium-sized real estate companies.