The break of the capital chain will have a great impact on enterprises, ranging from the inability to pay employees' wages on time to the inability of enterprises to stop production and maintain normal operation, and banks will auction mortgaged assets, which will eventually lead to bankruptcy or closure of enterprises.
Five reasons for the crisis of capital chain rupture;
1, insufficient liquidity
2. Account period risk
3. Liquidity exhaustion caused by the difficulty in repaying current liabilities.
4. Foreign secured loans bring passivity to domestic enterprises.
5. Investment mistakes
These are the main "straws" that may crush the camel of the enterprise.
How to prevent the capital chain from breaking?
1, carefully guarantee
2. Carefully expand production.
3. Cash is king
4. Moderate credit
For the government, it is mainly to reduce the tax burden of enterprises and provide necessary financial support; For enterprises, it is mainly through strengthening management, reducing costs, improving investment efficiency and promoting product transformation and upgrading to find a way out.