any start-up costs, and even the minimum start-up costs include some of the most basic expenses, such as product deposits, store rentals, not to mention larger commercial projects. Therefore, for entrepreneurs, the ability to raise funds quickly and efficiently is a crucial factor in entrepreneurial success.
financing channels for SMEs
The financing channel of small and medium-sized enterprises
domestic entrepreneurs to realize, is relatively single, mainly rely on banks and other financial institutions, in fact, venture financing of small and medium-sized enterprises, to a multi pronged, do not hang in a tree, so that we can The more, the better.
channel 1: bank loan bank loans known as the venture financing of small and medium-sized enterprises "reservoir", because the bank financial strength, and most of them have the background, so the entrepreneurs in very mass base". From the current situation, there are 4 types of bank loans:
1 mortgage refers to the way a borrower provides certain property to a bank as collateral for a loan.
2, a credit loan, refers to a loan made by a bank only with respect to the creditworthiness of the borrower. The borrower does not need to provide collateral to the bank.
3, a secured loan, refers to the guarantor’s credit as collateral for the loan.
4, a discount loan, refers to the way in which a borrower applies for a discount to the bank to finance the loan when he is in dire need of funds.
remind entrepreneurs from bank loans, will be prepared to fight a protracted war preparations, because the application and loan is not a bank dealing, but need to go through the administrative department of industry and commerce, the tax department, intermediary of a "threshold". Moreover, the procedure is cumbersome, any link can not be a problem.
channel 2: risk investment in the eyes of many people, venture capitalists have a magical pocketbook, fell from the pocketbook money to allow entrepreneurs to sit on Aladdin’s "blanket". But the risk of investment is a high risk high return on investment, venture capital into the venture enterprise in the form of shares, in order to reduce the risk in the implementation of appreciation after exit, and never venture together. Moreover, venture capital is more popular with high-tech start-ups.
reminds venture capitalists to care about the technology in the hands of entrepreneurs, but they are more concerned about the profit model of start-ups and entrepreneurs themselves. Therefore, the "common people" it is difficult to obtain the risk investors, just like Zhang Zhaoyang, Shao Yibo, Liang Jianzhang as the "hero", entrepreneurs had access to the shiny "pocketbook".
channel 3: private capital with our government to encourage and guide private investment, and improve the degree of market economy, private capital is gaining more and more space for development, at present, China’s manufacturing industry of private investment is no longer confined to the traditional and the service sector, but to infrastructure, science and education.