72 Conference Proceedings Citation IndexAlso known as financial risk, financing risk refers to the enterprises in financing activities as a result of macroeconomic environment, the change of the capital supply and demand of market; the fi nancing sources on factors such as structure, variety structure, and maturity structure bring the expected results of differences with the actual result.1. The connotation of enterprise fi nancing riskBusiness financing is an enterprise as a financing body, according to the needs of its production and business, foreign investment and capital structure and other aspects, through funding channels and financial markets, the use of financing, economical and effective mobilization and concentration of capital activities. Financing and centralization of capital, sources of capital refers to funds here, fi nancial management perspective, assets = capital, since the source of corporate funding has its own funds and borrowed funds of these two types, the capital is divided into debt capital and equity capital two categories. So companies can be divided into risk fi nancing equity fi nancing and debt fi nancing risks two categories.When investors invest funds not produce the expected return on investment, investors will sell stocks, causing stock prices, making refi nancing more diffi cult business to increase, fi nancing costs will rise and affect the equity fi nancing risk factors the size of the equity fi nancing, capital structure, the companys operating conditions, capital market environment.While corporate credit through other means to finance the loan, the risk is unable to pay debts due debt fi nancing risks. In summary debt ratio, the size of the interest rate, repayment term structure, debt structure and other factors that affect the risk of debt financing, investment decisions from the enterprise to the external financial environment in which the business of these changes will lead to internal debt fi nance risk fl uctuations.2. The reason of Enterprise Funding Risk 2.1 Uncertainty of Capital StructureCapital structure is the core business of fi nancing decisions, referring to factors constitute its corporate capital structure ratio between the enterprises of various capital including capital fi nancing, the amount of funding, debt deadlines.1. Including financing to bank loans, issuing bonds, issue stock, private lending and other means. Different fi nancing, risk to the enterprise will be different. When companies do not meet their own financing needed financing, it will lead to insolvency, debt servicing is diffi cult to maturity, it will have a fi nancial risk.2. The amount of funding refers to how much financing amount. How much money should be comprehensive consideration of fi nancing investment projects to assess the reality. In general, the business goes well, when the debt ratio is relatively high. Bad business will encounter a problem or when the debt ratio is relatively low.3. The debt maturity refers to the expiration of the term of repayment of debt with commercial discounts or advance repayment period. In this paper, the former study. Unreasonable debt maturity, when possible maturity of the debt will be cash fl ow diffi culties, making it diffi cult to repay.2.2 Profi t and loss of business activitiesInvestment funds will have to rely on, and funding is the starting point for companies to invest in business. Debt fi nancing as one of the enterprises of the two main funding financing relative to equity fi nancing, debt fi nancing typically pay a higher cost of debt. Companies want to compensate for this cost must be debt service, debt service funds ultimately depends on the economic benefi ts of enterprises. If the enterprises in investment, blindly invest, and no adequate market research and assessment of income, it is likely to cause a backlog of inventory, cash fl ow difficulties of the situation. In modern society, the prevalence among commercial credit business deals with each other. Credit rating is not comprehensive enough, it will result in accounts receivable losses. Companies eager to get rid of inventory backlog situation will try to fi nd ways to accumulate product sales, so it is easy to ignore the assessment of the customers credit rating so as to form a large number of accounts receivable. After more than one product cycle it is easy to form a vicious cycle, a large amount of bad debts being paid. Adversely affect a large number of bad debts of the enterprise management is self-evident. Business activities, even though the formation of unnecessary accounts receivable, if the company can promptly select the right investment decision, a reasonable product sales, and achieved certain called profit, with earnings, not burdened with debt pressure; if long-term business mismanagement, increasing losses, then the business would be difficult to scheduled debt service, under pressure from the business aspect of debt, debt financing risk is formed.Ente