Chapter 566: Assassination Squad – Fujiwara Suki
When that time comes, if sufficient satisfaction cannot be obtained, external borrowing methods such as bank loans, stock financing, and bond financing can be used. These external fundraising methods have advantages like large amounts, long fund usage periods, or even no repayment requirements, and can effectively solve problems of insufficient or tense funding. However, this method also comes with disadvantages, such as complicated fundraising procedures and high costs. Ultimately, enterprises need to make comprehensive considerations based on their actual situations and market conditions to decide which fundraising method to choose.
**Utilization of Funds**
In enterprise operations, the utilization of funds is a very important aspect. The effectiveness of fund utilization directly affects the final profit of the company. When carrying out fund utilization, enterprises need to pay attention to several key areas.
**Purchasing Production Resources**
When enterprises engage in production operations, they need to purchase various production resources, such as raw materials, machinery, land, and factories. These production resources are the basic foundation for the company’s operations, and ensuring their quality and quantity is essential for normal functioning. When purchasing production resources, enterprises must conduct thorough market research to select suppliers that offer the best value for money, while also quantifying procurement based on their production needs.
**Investment**
When utilizing funds, enterprises can also opt for investment. Investments can be classified into short-term and long-term. Short-term investments, such as purchasing stock funds and short-term financial products, aim for quick returns, but the risks are relatively high. Long-term investments, such as real estate, infrastructure, or research and development for new products, seek stable and substantial returns but require longer capital occupation and have lower liquidity. Enterprises need to consider factors such as surplus capital, industry background, and market fluctuations when making investment decisions.
**Repaying Debts**
During fund operations, enterprises must also pay attention to repaying debts, which include short-term and long-term borrowings. Short-term borrowings, such as commercial bills and bank short-term loans, must be repaid within specified timeframes; long-term borrowings, such as bonds and bank long-term loans, require regular interest payments and principal repayment upon maturity. Enterprises should develop reasonable repayment plans based on their financial situations and loan contract stipulations to ensure credit and long-term stability.
**Fund Control and Risk Management**
Fund control and risk management are crucial parts of enterprise financial management. Fund control ensures the safety and effective use of funds, reducing the risk of misuse or wastage. Risk management helps avoid losses in funds and reputation due to various risks.
**Fund Control**
Enterprises need to establish comprehensive fund control systems, including budget management, internal audits, and fund usage approvals. Budget management can help the enterprise create reasonable funding plans and control expenditure. Internal audits can identify loopholes and issues in fund usage and facilitate timely corrections. Fund usage approvals should regulate funding procedures and set limits on fund usage, ensuring every expenditure is for legitimate purposes.
**Risk Management**
The risks enterprises face include market risk, credit risk, and liquidity risk. Market risks, such as price fluctuations and supply-demand changes, require companies to conduct thorough market research and make flexible operational strategies. Credit risks, such as customers defaulting on payments or suppliers breaching contracts, necessitate a sound credit management system and collaboration with reputable clients and suppliers. Liquidity risks, like cash flow issues, compel enterprises to enhance accounts receivable and inventory management to ensure sufficient liquidity.
**Improving Fund Utilization Efficiency**
Fund utilization efficiency is an important indicator of an enterprise’s financial management level. Enhancing fund utilization efficiency helps reduce waste and improve profitability.
**Accelerating Fund Turnover**
Accelerating fund turnover can decrease idle times and improve utilization efficiency. Enterprises can achieve faster turnover by shortening production cycles, speeding up inventory sales, and expediting accounts receivable collections.
**Optimizing Asset Structure**
Optimizing the asset structure can enhance fund utilization efficiency. Enterprises can achieve asset optimization by reducing unnecessary assets, increasing asset utilization rates, and optimizing asset allocation. Additionally, companies can avoid waste by renting, selling, or transferring idle assets.
**Scientific Decision-Making**
Scientific decision-making can help improve fund utilization efficiency. When making decisions regarding investment, procurement, and production, companies need to conduct adequate research and analysis, making decisions based on forecasts. Scientific decision-making helps prevent funds from being invested in inefficient or unproductive projects, ensuring that resources are allocated to the most valuable areas.
**Conclusion**
The financial management of a company is a complex and systematic process that involves fundraising, utilization, control, and risk management. Reasonable financial management can help enterprises maintain steady growth, maximize profits, and lay a solid foundation for long-term development. Entrepreneurs should closely monitor the flow and utilization of funds, and timely adjust financial strategies based on market changes and the company’s actual situations to ensure steady progress in the face of fierce market competition.
