Advantages And Disadvantages Of Direct And Indirect Financing

One

The supply and demand sides are directly linked, and funds can be flexibly realized according to their respective financing conditions.

2., because the capital supply and demand sides form creditor's right and debt relationship directly, it is beneficial to improve the use effect of funds.

3. by issuing stocks and bonds, it helps to raise long-term funds.

Disadvantages:

1., the risk is large for creditors.

2. there are many restrictions on direct financing.

1., banks and other financial institutions can mobilize idle funds widely because of the large number of outlets and low starting point of deposits.

2., banks and other financial institutions can diversify their businesses and diversify their risks, so that the security of funds is high.

Disadvantages:

1. poor flexibility;

2. because capital has added intermediaries between supply and demand sides, it has cut off the direct relationship between supply and demand sides. To a certain extent, it has reduced investors' concern about the operating conditions of investors, which is not conducive to improving the efficiency of capital use, and it is easy for banks to form bad assets.

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First, according to the information, we can help to analyze the sales status, credit status and the trend of buying products.

Second, when formulating a sales plan, we can make targeted sales plans according to the customers' purchase of products and quotas.

Third, it can be used as a basis for forward-looking communication with guests.

Fourth, if there is any business dispute with the guests directly, we can provide a complete chain of evidence for our initiative.

Fifth, we can improve and optimize our product chain.