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What is the difference between financing and financing?
Fund-raising is equivalent to fund-raising, which refers to the whole process of raising the required funds from different capital channels through various ways and legal procedures.
Financing refers to the financial management behavior that the company raises funds from the company's investors and creditors through certain channels according to its own production and operation conditions and capital ownership, and organizes the supply of funds to ensure the company's normal production needs and management activities.
2, the scope is different:
There are two ways to raise funds, one is to accept the funds invested by investors, that is, the capital of enterprises; The other is the funds borrowed from creditors, that is, the liabilities of enterprises.
And financing is also called finance, which is the financing of monetary funds. The behavior of the parties to raise or lend funds in the financial market through various means is mainly to obtain funds from outside the enterprise.
3. Different ways:
The financing methods include, but are not limited to, the following four: the first is IMF, which means fake stocks and secret loans; Second, bank acceptance bills; The third is direct deposit; The fourth type is bank letter of credit (large pledged deposit).
There are two ways to raise funds. The first category is the way to raise equity capital: absorbing direct investment, issuing stocks and retaining income.
The second type of debt financing includes: issuing bonds, bank loans, financial leasing, commercial credit, etc.
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