LED Jun, do not let the funds strand breaks to find you......

Recently, the funding strand breaks the word was once again raised by the LED lighting industry, and even become a lot of LED lighting manufacturers in the minds of sensitive words. Who do not want to break the chain of funds associated with their occurrence, however, do not advance prevention, not properly handled, funding strand breaks will not be far away.

Who suffered funding strand breaks?

Not only hurt themselves

According to the China light industrial network reported that the first half of 2015, the national LED lighting industry, the cumulative loss of 579 enterprises, the loss was 22.18%, higher than the national light industry face a loss of 8.6 percentage points over the same period last year losses expanded 2.57 percentage points. In addition, the cumulative loss of the lighting industry accounted for 2.68% of the total loss of light industry. Among them, the lighting manufacturing losses amounted to $834 million, accounting for 68.62% of the total loss of lighting industry.

In recent years, the development of the LED industry is caught up with "an eventful year", "run away", "lost", "collapse" and "loss" reported frequently, this downturn or with the current LED industry has a great relationship. According to industry insiders, the excessive expansion of enterprise scale of the problem is inconsistent and customers too much credit or is an important cause of LED manufacturers capital chain rupture.

It is understood that in the past three years, the domestic LED lighting companies due to funding strand breaks and other reasons for the emergence of enterprise foot phenomenon is more obvious. In September 2015, Foshan Shunde lighting enterprise capital chain rupture was exposed, hundreds of suppliers and employees containment enterprises to beg for money and wages; in October 22, 2014, Zhongshan Phoenix light legend traced due to funding strand breaks, the boss "run away"; in October 13, 2014, Shenzhen new Tatsu photoelectric sent wages 3 months "run away"......

Enterprise funds strand breaks, in fact, not only hurt themselves, the real harm is the suppliers, distributors and employees. Enterprise payment of arrears, the supplier will suffer a double loss of goods and capital; enterprise capital chain rupture, the dealer may encounter "play money out of stock" embarrassment, late product sales is not guaranteed; and the employees are "hard money", not to the corresponding labor remuneration, at last. Unpaid door.

How to prevent funding strand breaks?

Cut to

In the economic environment is not ideal circumstances, for the majority of LED lighting manufacturers, but also to cut costs, within our means, to ensure sustained and stable cash flow, in order to prevent its capital chain risk.

1, do a good job of enterprise capital flow planning. Cash capital is the basic guarantee for the survival and development of LED lighting manufacturers, manufacturers in the development of the operation must be done within the flow of funds planning, so that each enterprise funds can really benefit the enterprise. Today, the rapid growth of LED products faster than expected, companies should accurately grasp the market demand, and for the most market value of the product project investment.

2, control the flow rate of occupation. Relatively speaking, LED industry is a high investment, slow return of the industry, the previous stage of higher investment funds for R & D, production, sales and slow recovery of funds, coupled with the current market doldrums, the backlog of inventory and other issues is a common thing. Therefore, to improve the capital turnover rate, reduce the rate of capital occupation is the primary task facing enterprises.

3, expand sales, improve profit margins. There is no doubt that the enterprise cash flow to be long-term, sustained profitability of product sales is the key: on the one hand, lighting manufacturers have through various channels, to enhance their product sales; on the other hand, in the Internet era, lighting manufacturers to innovative thinking, in the product profit margins continued to decline in the moment, promotion the product profit rate.

4, to prevent investment risks. Expansion of the enterprise should be a way to get the strength of multiple enterprises, but in a higher degree of specialization, the current market competition, enterprises need to consider the expansion of the scale of risk. In the early stage of investment, enterprises should do a good job of budget management, considering the risks, to avoid the huge amount of money into a bottomless pit, thereby increasing the risk of capital flows.

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