Recently, Wuwei County, Anhui Province, one of China's four major wire and cable bases, held a wire and cable company and bank matchmaking meeting to break the corporate financing problem. In view of financing difficulties, the reporter interviewed a number of experts in the cable industry. They pointed out that many cable companies in China have three typical problems in terms of financing: too narrow a channel, insufficient efforts, and outdated ideas.
At present, wire and cable companies are facing problems such as rising energy, rising materials, rising wages, rising logistics, low profits, and slow return payments. They are in a capital-intensive industry, and cable companies have great demand for funds. However, the financing of many cable companies in China basically depends only on government support and bank financing. The funds obtained cannot meet the needs of the company. And more than 97% of China's wire and cable industry is small and medium-sized enterprises. These companies are more difficult to get government funding or bank loans.
Insufficient financing is also a problem that hinders the development of wire and cable companies. Many wire and cable companies rely too much on outside financing and have not fully used their financing capabilities. Many companies are not used to attracting investment, and are not good at making full use of their advanced technologies, high-quality products, and superior management. The core advantages can not reflect the lack of confidence of banks in their development potential. In addition, the current bank financing threshold is high, so the financing effect is naturally not good.
Another problem is the outdated financing concept. From the current point of view, most wire and cable companies still use forms of working capital loans, bills, etc., which are reflected in the guidance of the old ideas, indicating that the core corporate management has limited literacy, limited horizons, and knowledge of financing concepts. Also basically stay in the past.
Currently, the three major problems of overly narrow financing channels, insufficient efforts, and outdated ideas are hindering the development of wire and cable companies. Wire and cable enterprises should start from the aspects of establishing more financing channels, rationally utilizing their own advantages to strengthen financing, and maintaining the financing concept of advancing with the times, so that financing problems can be resolved or mitigated.
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