Indebtedness can make up for the enterprise operation and long-term development funds shortage. Enterprises in the process of production and operation, there are always various situation requires a lot of money, and internal accumulation of its own capital alone, not only not allowed on time, but also on the number of difficult to adapt to the development speed. So, the enterprise in the case of insufficient funds, indebtedness may use more power to expand the enterprise scale and economic strength, improve the operation efficiency and competitiveness of enterprises.
In addition, the enterprise not only need indebtedness when insufficient funds, is when cash-rich indebtedness is also very necessary. Because of the accumulation of capital within the enterprise, more on enterprise scale and the use of its own funds alone there is a limit to the amount of funds.
However, debt management is a double-edged sword, with well is invincible, give themselves with bad would be easy to hurt, like shenzhen some LED lighting companies such as light, they were “cut” indebtedness. The Wei Xingguang also said: “there are a lot of enterprises because there is no point to control the debt, so that enterprise management crisis.”
Visible, just the right amount of indebtedness is important, how to do it “just right”, that is specific to each company. Wei Xingguang said: “if the simplest way is to see the debt ratio, debt ratio is less than 30% means that the fund use efficiency is not high, general enterprise can control in 50%, 70%, is a critical point, within the scope of the enterprise can be controlled, if more than 70% means that there is a potential crisis.”
Is the debt management operations into the inexhaustible power supply enterprise development? Or put it into a “powder keg” operation? This would require the lighting lighting enterprises according to their own conditions hold good.