ABSTRACT
KK Company located in Xiamen, is a small and medium-sized scientific &
technology enterprise engaged in high technology. After nearly 10 years
development, the company has formed scale production and business ability since its
establishment in 2003. KK has quite a lot of stable target customers and marketing
channels, its products sell well both in the domestic and international markets. The
market share of KK has increased year by year. The company is at the stage of
growing up, there are broad development prospects.With the increasingly fierce
market competition, competitive pressures KK Company faced are increasing so the
company must strengthen their own scale in time and constantly develop new product
categories. A company's sustainable development requires a substantial amount of
money, but KK Company, after its establishment, only has a single financing channel,
lacks of clear financing strategy and systematic financing management system,
especially outstanding is the problems of financing, as a result of these problems,
the development of the company is restricted. Therefore, research on financing
strategy of KK Company contributes to the further development of the company,and
has some referential significance to other small and medium-sized enterprises.
This paper used KK Company's financing problem as the research target, and
analyzed the issue through combination of qualitative and quantitative methods based
on corporate financing theory and the practical situation of KK Company. The author
did comprehensive analysis of the information gained from various statistics and data
of KK Company by using qualitative analysis, inductive, integrating theory with
practice and other research methods. Meanwhile, the author conducted deep analysis
and discussion on the problems existing in the financing activities, as a result, certain
problems were found in the existing financing strategies such as the lack of a clear
strategy and the external financing channel, single channel, unreasonable financing
structure, unsound financing risk management system and so on.
Through research and analysis, this thesis convinced that the following
optimization strategies should be taken into KK financing decision at this stage: select
the appropriate financing strategy according to the company financial growth cycle;
optimize financing channels by shaping of the relationship between banks and
enterprises and using multiple financing methods; increase debt scale to optimize the
financing structure; establish internal management mechanism to enhance the
financing risks management. The results of this study show that at this stage, KK
companies should improve its level of management and decision-making, take full
advantage of the internal retained earnings. Meanwhile, actively borrow from banks,
choose endogenous financing and bank borrowings as a major way of financing,
actively seek for the support of policy funds and introduce venture capital timely. KK
company should further strengthen the internal management of enterprises, improve
the financial system, establish financial early warning mechanism of financing risks,
actively develop relations with bank and government, explore new financing channels
for enterprises,so that the enterprise can obtain bank credit funds and policy support
funds to provide internal security and external security.
Keywords: financing Strategies, Financial growth cycle theory, Financial channels,
small and medium technology enterprises