Analysis of OFO’s Financing Problems

Abstract

As a representative of the rapid rise of Small and medium-sized enterprises, OFO has gone from glory to failure in just six years. The main reason for it is that financing difficulty and the reasonable use of financing funds that SMEs generally need to face during their development. To solve this problem, China should carry out comprehensive reforms of the rule of law and finance to alleviate bank loan risks and establish the status of SMEs. Meanwhile, companies themselves should also pay attention to the correct use of financing funds in order to finance better.