Why did changge city Baosheng Real Estate close down?

Changge city Baosheng Real Estate closed down because the capital chain was broken.

Baosheng Real Estate is a real estate development company, whose main business is real estate development and sales. However, in the economic downturn, the sales performance of Baosheng Real Estate began to decline, and the capital income was not enough to support its daily operations. At the same time, the high debt ratio and poor management of Baosheng Real Estate led to the break of its capital chain, which eventually led to its bankruptcy.

For real estate enterprises, the importance of capital chain is self-evident. Once the capital chain breaks, enterprises will face serious financial pressure and may even face the risk of bankruptcy. Therefore, real estate enterprises should pay attention to the rational use and management of funds in their daily operations to avoid the break of the capital chain. At the same time, enterprises should make timely business adjustment and strategic transformation according to the changes of market demand and economic environment to ensure the survival and development of enterprises.

In preventing the capital chain from breaking, enterprises can take the following measures: first, strengthen financial management, strictly control the financial risks of enterprises, and ensure the adequacy and safety of funds; Second, actively expand business, open up new markets and business areas, and increase the income sources of enterprises; Third, strengthen cooperation with banks and other financial institutions, establish stable financing channels, and ensure stable and reliable sources of funds for enterprises.

In a word, ensuring the safety of capital chain is very important for the survival and development of enterprises. Real estate enterprises should strengthen financial management, expand business and establish stable financing channels to ensure that the enterprise capital chain will not break.