Benefits of listing a company

Reducing the debt ratio can enhance the company's brand, improve the company's management level, increase the maintenance cost and improve the company's transparency.

1, reduce the debt ratio

The listing of companies can first reduce excessive dependence on bank loans. After listing, the company obtained capital from the capital market, and the asset-liability ratio was greatly reduced. Dependence on bank loans will be reduced, and the credit rating in banks will be improved. When the policy suddenly stops, we will not be too worried about the shortage of capital chain. Asset-liability ratio reflects the ratio of debt provided by creditors to total capital, also called debt operating ratio.

2. It can enhance the brand of the company.

After listing, the company will become a public company, and more and more people will know about the company, so it will play a certain role in enhancing the company's brand.

3. Improve the management level of the company.

After listing, the company must introduce scientific corporate governance scheme and establish a set of standardized management system and financial system in accordance with the regulations, which will improve the management level of the company to a certain extent. In addition, listed companies have independent directors who are experts in various industries, which is equivalent to hiring an expert around them at a low price.

4. Increase the maintenance cost

For a company, it needs to invest a certain maintenance fee every year to ensure the company's operation. Maintenance cost refers to the daily operation and maintenance cost of the parts and facilities used by the property. These costs will increase after the company goes public.

5. Improve the transparency of the company.

It has improved the transparency and exposure of the company, increased the public's confidence in the company, and improved the company's visibility. While improving the transparency of the company, it will inevitably expose many company secrets. After listing, it is necessary to inform shareholders of some company information such as financial statements and company income on a regular basis. Of course, it is also possible to be maliciously manipulated by competitors.