Debt management victims have been countless bitterness

The recent emergence of a large number of LED lighting business failures again touched the hearts of countless insiders, some of which are some of the crisis because of the excessive use of financial leverage caused by. However, the industry insiders, the excessive use of financial leverage in the LED lighting industry prevalent, only the tip of the iceberg.

In the rapid development of LED lighting in recent years, many enterprises in order to pursue market share, the transition of the use of financial leverage in the phenomenon of a large, serious beyond the controllable range of the enterprise.

However, compared with the LED lighting companies, the traditional lighting companies in this regard is relatively conservative, especially the older generation of entrepreneurs, they are affected by the traditional doctrine of the mean in China, unwilling to operate in debt. Contact lighting lighting industry has 20 years of Guangdong Development Bank Zhongshan branch of the ancient town branch president Wei Xingguang said, in fact, many lighting companies do not want to borrow money to develop.

According to my understanding, many companies think they do not bad money, no need to borrow. However, I think it is because you do not have to create conditions for enterprises to develop better, when you put more money for the market development, product development, expand production, improve technology and equipment, the reform process, broaden the scope of business, improve the quality of the enterprise, you will find yourself "not bad money"?

Wenzhongqiusheng is good, no crisis, but you will miss opportunities to think about the future development will have to pay a higher price. In today's highly developed market economy, the use of financial leverage, by the chicken egg can no doubt help companies to integrate capital advantages, the rapid expansion of enterprises bigger and stronger.

Debt management can make up for the shortage of funds for enterprise operation and long-term development. The enterprise in the production process, there are various situations that need a lot of money, but rely on the internal accumulation of its own funds, not only not allowed in time, but also in number is also difficult to adapt to the pace of development. Therefore, in the case of insufficient funds, debt management can use more capital to expand the scale and economic strength of enterprises, improve the efficiency and competitiveness of enterprises.

In addition, enterprises not only need to operate in debt when the funds are insufficient, that is, when the capital adequacy of the debt management is also very necessary. Because the accumulation of funds within the enterprise more, only the size of its own funds and the amount of funds used is always limited.

However, debt management is a double-edged sword, with good invincible, with good easy to hurt myself, like some other Shenzhen billion light LED lighting companies, they are "self" debt management. In this regard, Wei also said: there are indeed many companies because there is no good control of the debt sector, so that enterprises operating crisis. "

Visible, just the right to operate the debt is crucial, how can we do just right, it should be specific to each enterprise. Wei Xingguang said: "the most simple way is to see if the debt ratio, debt ratio of less than 30% means that the efficiency of the use of funds is not high, the general business will be controlled at 50%, 70% is a critical point in this range is the enterprise can control, if more than 70% means that there is a potential crisis. "

Is the operation of the debt into a steady stream of enterprise development momentum? Or turn it into a "powder keg"? This requires lighting companies according to their own situation to grasp.