With the gradual improvement of China's market economic system and the rapid development of financial market, financing efficiency has increasingly become the key to the development of enterprises.

For small and medium-sized enterprises, how to choose financing methods, how to grasp the scale of financing and the timing, conditions, costs and risks of various financing modes need careful analysis and research before financing.

Then, how can we formulate the best financing plan?

The total income of financing is greater than the total cost of financing. The first thing to consider is how to make investment returns after financing.

Because financing means cost, financing cost has interest cost of capital, and may be expensive financing cost and uncertain risk cost.

Therefore, it is only necessary to consider that the total revenue expected from the raised funds is greater than the total cost of financing.

This is the first prerequisite for enterprises to make financing decisions.

The financing scale of enterprises should be done according to their capabilities.

Excessive financing, or may cause idle and wasted funds, increase financing costs, or may lead to too much debt, so that they can not afford to repay difficulties, increase business risk.

Insufficient financing will also affect the normal development of investment and financing plans and other businesses.

Therefore, at the beginning of the financing decision, enterprises should do their best to determine the reasonable financing scale according to the needs of enterprises, the actual conditions of enterprises, the difficulty and cost of financing.

Generally speaking, we should take full account of the following aspects: first, enterprise financing decisions should be forward-looking. Enterprises should be able to grasp all kinds of external and environmental factors such as interest rates, exchange rates and other financial markets at home and abroad, understand the macroeconomic situation, monetary and fiscal policies and political environment at home and abroad, and rationally analyze and predict various favorable and unfavorable conditions that may affect the financing of enterprises and possible changing trends, so as to find the best financing opportunities and make decisive decisions.

Second, considering the characteristics of specific financing methods, and combining the actual situation of the enterprises themselves, we should formulate reasonable financing decisions in time.

To reduce the financing cost of enterprises as far as possible, the financing cost of enterprises is the decisive factor that determines the financing efficiency of enterprises. For small and medium-sized enterprises, the choice of the financing method is of great significance.

In general, the financing costs of various major financing methods, which are divided according to the source of financing, are listed as follows: financial financing, commercial financing, internal financing, bank financing, bond financing and stock financing.

In addition, when choosing bank financing, we should pay enough attention to the different credit policies among banks and choose the most favorable and preferential banks for SMEs.

Take the Bank of China, one of the four major commercial banks, for example. In recent years, the bank has introduced a credit policy to support small and medium-sized enterprises, which has very detailed and specific provisions on supporting industries, interest rates and risk control.

When we look for the best capital structure, we must attach great importance to the control of financing risks and choose the less risky financing methods.

When undertaking financing decisions, enterprises should seek a balance between controlling financing risks and seeking maximum interests, namely seeking the best capital structure of enterprises.

When applying for loans to the bank, it is necessary to calculate the amount of the loan, determine the use of the loan, prepare the full set of real information, contact the bank's customer department directly and cooperate with the bank's investigation and evaluation.

Second, when your enterprise is in urgent need of funds and can not find any funds, it is suggested that you reflect on whether your project is mature (immature projects are unable to obtain funds), and inject more technology into your company, so that your products will be more marketable, and your business will be more in line with financing requirements.

Third, when enterprises are in the start-up period, it is better to introduce venture capital or other investments, and when they develop to a certain level, they are looking for banks.

Generally speaking, banks are "icing on the cake" instead of "providing timely help".

Fourth, the way of financing for SMEs is not only a kind of bank financing. Even if the guarantee agencies have been successful, the indirect financing provided by banks will gradually lose their dominant position from the perspective of the development of various countries.

For a small and medium-sized enterprise in the growth stage, it is a wise and effective method to invite banks (banks to provide financial consultancy services to enterprises) or relevant professional institutions to design financing programs, and to make rational combinations of various financing methods.