Five Major Financing Traps And Avoidance Methods For Small And Medium Sized Enterprises

With the development of financing channels for small and medium-sized enterprises, various financing risks are beginning to appear. How to avoid various traps and accidents in the financing process in the development of SMEs becomes a problem that every small and medium-sized enterprises must face.

At present, financing difficulties have become a prominent problem that puzzles the development of small and medium-sized enterprises. Without capital operation, it is pushing the small and medium-sized enterprises to the edge of bankruptcy. If the enterprises fall into the financing trap carelessly in the financing process, it will be even worse.

In 2008, the financial turmoil in the US Wall Street almost swept the globe. This storm brought difficulties to Chinese SMEs, especially in small and medium-sized export enterprises.

Therefore, after the storm, more and more small and medium-sized enterprises are facing financing problems. At this time, all kinds of tricks and financing risks began to "occupy" the market. Experts remind that enterprises must pay attention to details in the financing process, avoid falling into the trap of financing, causing unnecessary losses.

One of the traps: first, to study the trap: first, to examine the reputation of China as a country of ceremonies. Therefore, during the period of enterprise financing, reception and accommodation arrangements for those who came to help are reasonable, but a certain type of inspectors must be careful.

On the premise of not knowing the situation of the enterprise, it requires the inspection of the enterprise, and requires the enterprise to pay the inspection fee. Not only that, but also the high requirement for the inspection fee.

In China, investment institutions that require payment of investigation fees are not common. Real capital providers usually arrange their own visits.

Trapping trap two: project acceptance fee, the cost of project acceptance fee refers to the cost that the financing service organization requires the financing enterprise to pay for the project evaluation and project pretrial after receiving the relevant information of the enterprise, especially the investment company known as a foreign capital background, often charging the item acceptance fee as a kind of project control procedure and the way of cost pfer. If there are the following situations, the financing enterprise must be vigilant and the hoax is coming to the door.

The financing institutions of the financial institutions do not make substantive audit on the financing enterprises' project data, that is, the preliminary conclusion of the accreditation; the conclusion of the initial evaluation of the projects which do not have the conditions; for the purpose of charging the project acceptance fees, and not for the purpose of project investment, they reject the financing enterprises on various grounds in the substantive evaluation stage of the project.

The business plan is the first one to be obtained before the site inspection of the venture capitalist. Now, both domestic and overseas investment institutions are used to the use of business plans. Therefore, the writing of business plans is a required course before the financing of the business. It is precisely because of the importance of business plans to give some unlawful elements to the opportunity.

Under the following circumstances, financing enterprises should refuse to help.

Enterprises have already invited other financing institutions or made their own business plans, but the financing service institutions or the capital side refuse them for various reasons, and as a necessary part of the project going on, not only that, but also make it difficult to finance enterprises, requiring them to provide "international standard format" business plan.

Pitfall trap four: assessment of fees and charges in the financing process, some investors or financial services institutions require the assessment of enterprise assets or projects, if it is in the implementation stage of the financing, this assessment is absolutely necessary, but if there are the following circumstances, there is suspicion of fraud.

Project evaluation is not in the project implementation stage, but in the project audit stage; the evaluation institution is not the evaluation institution accredited by the fund side or the financing service institution; it requires that the whole project or part of the assets (mainly intangible assets) be assessed.

Trap five: margin money is also a common trap for enterprises in the financing process. It is understood that 30% of enterprises have been cheated on the margin.

With the following conditions, the margin is a hoax.

The financial side requires the financing enterprises to strictly operate according to their own pre-set procedures, otherwise they will refuse to go down; the capital side has set up strict breach clauses; the capital side is easy to audit the project, and has low enthusiasm for the authenticity of the project and the return of the project.

There is a real case of how to prevent fraudsters from financing fraud. Through this case, let's see how the fraudsters really use the financing of enterprises to carry out swindle, and finally succeed.

A company has a patented technology in toy manufacturing. In order to get financial support, they look for financing opportunities everywhere. At a meeting, A met B company. It is said that B is an office of a senior financing agency in China.

The B company responded quickly to A's financing request and claimed that if the A company's financing requirements could not be completed, no fees would be charged to A company.

After simple communication, B company in accordance with the current popular way, requires A company to provide business plan and qualification, and introduces them to a C company to operate these businesses.

A did not think much about it. It paid the C company 30 thousand yuan in accordance with the contract, and later paid 20 thousand yuan. But after that, C company never heard of it.

When A company went to find B company theory, it was discovered that B company was also empty. Originally A company wanted to finance, now it turned into a capital contribution.

In fact, in this case, B company's cheating is not brilliant, but A has no experience to be deceived by counterfeit B companies.

The fox is cunning and has its tail.

Therefore, SMEs must raise their vigilance in the financing process, pay attention to the following aspects: 1., confirm the strength and feasibility of the capital side. The real financing institutions must have successful financing cases, and the financing enterprises can start with the successful cases of the financing institutions and confirm their strength.

The other is the business plan mentioned above. Formal financing institutions generally do not designate specialized companies to write business plans for financing companies, but only require financing companies to provide them.

In addition, the capital side introduced by the financing service organization, if the fund side really wants to invest in the project, is generally entrusted by the capital side and the financing enterprise to evaluate the company, to evaluate the cost sharing or to bear the capital side.

Generally speaking, fake financial services institutions have the following characteristics: the overall quality of employees is not high, the way to negotiate with financing enterprises is mysterious, and projects are easy to set up.

2., do not have any opportunistic psychological problems. Because of the difficulty of financing, most SMEs are eager to finance, and they like to take advantage of the cheap mentality.

It is urgent to do something bad and take advantage of it.

A lot of counterfeit capital side is to use the mentality of financing enterprises, so that enterprises bite.

For example, without a strict review, it will sign a letter of intent for financing with the enterprise. If there is no risk guarantee measures, financing arrangements will be made. A small project, even without any basic project, will have to invest tens of millions of yuan. This is not a hoax.

In the face of such a fraud, many small and medium-sized enterprises are fooled because they believe that their projects will be interesting and will naturally be deceived if they are looking forward to doing things.

3., if you want to minimize risks, it is better for professional financing agencies to follow up the whole process of services, or ask lawyers to take part in the financing process. In advance, we should judge the nature and authenticity of the funds and do enough homework before signing the agreement so that we can take precautionary measures.

In the face of so many financing traps, small and medium-sized enterprises must be shocked. So what kind of financing is the small and medium-sized enterprises dare to accept, and can ensure that SMEs successfully obtain funds and continue to carry out the real financing of business?

According to the reporter, in the Chinese market, financing channels have already expanded a lot, and if an enterprise really has good projects, it is not very difficult to get financial support.

At present, the popular financing channels in the Chinese market are mainly following: small and medium-sized enterprises can learn from them.

The first type of financial leasing is financing lease. The financial leasing means that the lessor buys the leasehold goods to the supplier according to the choice of the lessee (the small and medium-sized enterprise) to the supplier and the leasehold, and provides it to the lessee for use, and the lessee pays the rent in installments according to the time limit stipulated in the contract or the contract.

In order to obtain financial leasing, the project condition of the enterprise itself is very important, because the financing lease focuses on the future cash flow of the project. Therefore, the success of the financing lease is mainly concerned with the benefits of the leasing project itself, rather than the comprehensive benefits of the enterprise.

In addition, corporate credit is also important, as well as bank lending. Good credit is the basis for the next loan.

Second kinds of bank loans: the bank's acceptance of the bill of exchange financing. The two sides of the financing can apply to the bank to issue a bank acceptance bill in order to conclude the paction. After examination and approval, the bank will formally accept the bank acceptance contract, and the acceptance bank should sign the acceptance acceptance letter or signature on the acceptance bill.

In this way, a bank acceptance bill is called a bank acceptance bill. The bank acceptance bill specifically refers to a bank guarantee for the buyer, and the seller does not have to worry about not receiving the payment, because the guaranty bank which is due to pay the buyer will pay the loan.

The advantage of bank acceptance bill financing is that enterprises can realize short, frequent and quick financing, which can reduce the financial cost of enterprises.

Third types of real estate mortgage financing: real estate mortgage financing, real estate mortgage financing is the most widely used financing method in the market.

In real estate mortgage financing, enterprises must pay attention to China's legal provisions on real estate mortgage, such as guaranty law and urban real estate management law, so as to avoid being deceived.

There are fourth kinds of financing: equity pfer financing, equity pfer financing, which means that small and medium-sized enterprises obtain capital through pferring part of the shares of the company, so as to meet the financial needs of enterprises.

Small and medium-sized enterprises are financing the equity pfer, actually they want to introduce new partners.

The process of attracting direct investment.

Therefore, the choice of equity pfer must be very careful and careful. Otherwise, the enterprise will lose control and be in a passive situation. It is suggested that SMEs should consult the company law professionals before proceeding with the pfer of shares and be cautious.

Fifth kinds of guarantee: financing guarantee, financing, financing, and financing. The main advantage lies in the ability to seize market opportunities, reduce capital pressure and improve cash flow.

This kind of trade financing is applicable to small and medium-sized enterprises which have opened letters of credit in the bank, but the goods have arrived at the port, but the documents have not arrived.

It is important to note that once a guaranty financing business is carried out, no matter whether there is any discrepancy in the documents received, once the guarantee delivery procedure is carried out, the enterprise can not refuse to pay or refuse to accept it.

There are sixth kinds of funds: international market development fund, and the main source of funds comes from the Central Foreign Trade Development Fund.

If SMEs want to raise funds through this channel, we should pay attention to the main contents of market development funds: overseas exhibitions, quality management systems, environmental management systems, software export enterprises and various product certification, international market publicity and promotion, developing new markets, training and seminars, overseas bidding, etc., and expand activities in Latin America, Africa, Middle East, Eastern Europe and Southeast Asia.

The above six financing methods can be regarded as a popular model at present. Of course, apart from these, there are many channels for SME financing. For example, foreign exchange mortgage loans, overseas listing financing, compensation trade financing and so on, no matter what kind of financing methods, enterprises should be cautious when dealing with them.

In order to help SMEs better distinguish between genuine and fake financing, the reporters organized and summarized the characteristics of formal financing institutions and funds side (see table), hoping to help SMEs financing.