What does the financing function mean?

Financing function refers to the financial services provided by financial institutions in providing loans, financial leasing, credit guarantee, securities underwriting and other aspects to meet the needs of customers to obtain funds. This service can not only help customers solve the short-term cash flow problem, but also help customers develop in the long run. This is also one of the most basic businesses of financial institutions.

Organizational financing is one of the important means of enterprise development. The financing function can be realized through bank loans, issuing bonds and other channels. In the process of financing, enterprises should consider the cost and risk of funds to avoid unreasonable financing methods leading to future financial risks of enterprises.

The financing function is also very important for the stock market and securities investors. On the one hand, financing enables enterprises to increase capital, expand scale and production capacity; On the other hand, securities investors provide financial support for enterprises by purchasing securities products such as bonds and stocks, so as to obtain corresponding income. Therefore, the financing function is of great significance to the healthy development of social economy and the rapid development of enterprises.