The financing risk of small and medium-sized enterprises is basically the same as the financing risk in the general sense, and can also be called financing risk, which refers to the possibility of adverse effects brought about by the financing or financing process of enterprises. On the one hand, financing brings uncertainty about expected earnings, on the other hand, it also brings the possibility of losses. In the day-to-day production and operation of an enterprise can be specifically reflected in the possibility of the failure of the enterprise to raise funds: the possibility of excessive financing costs and the possibility that the funds raised do not achieve the expected returns. Financing risk is the increased risk of enterprise borrowing, and it is the risk brought about by financing decision. The cost of financing is the price of using funds, that is, the price that an enterprise must pay in order to obtain funds from various channels, and also the rate of return paid by an enterprise for the provider of funds.
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