What are the specifics of financing costs?

Financing costs are the various costs incurred by enterprises in the process of fund-raising, such as the payment of intermediary fees to intermediary institutions; the use of costs refers to the enterprise for the use of funds and the payment of compensation to its provider, such as stock financing to shareholders to pay dividends, dividends, the issuance of bonds and borrowings to creditors to pay the interest. Different sources of enterprise funds, the composition of financing costs are different. In a general sense, due to the lack of SMEs' own hardware and software (professional statistical software and professional financial personnel), they tend to pay more attention to the cost of financing as a more operational indicator than the cost of capital.