Corporate Finance
Capital procurement is a necessary link in corporate expansion. Recommendation of business advantage and provision of professional business prospectus to banks and funds through professional corporate finance consultants are the key factors for gaining successful finance.
Due to professionalism of corporation finance, finance consultant shall have extensive corporate finance experience, comprehensive finance channels, full knowledge of capital market, and high capability of professional planning. We can provide efficient professional service to assist corporate finance.
Venture Capital Introduction
Venture Capital (“VC”) is also called venture fund. Nowadays, Venture Capital has shifted its orientation from traditional industry to high and new-tech business creation, while high and new-tech field is an important way to gain high investment return.
- Object of Investment : Medium or small-sized enterprises in stage of business creation, and mostly being high and new-technology enterprises
- Term of Investment : 3-5 years or over, generally by means of equity investment, which usually accounts for 15-30% equity interests in the invested enterprise, without requirement for control power
- Decision of Investment : On the basis of expert assessment and evaluation
- Relation of Investment : Investment company will proactively take part in the operation and management of the invested enterprise, and provide value-added service
- Strategy of Investment : To determine the manner, scale and other aspects of investment according to different development stages of the invested enterprise (i.e. seedling stage, creation stage, growth stage, expansion stage, maturation stage), for the purpose of reducing investment risk
- Return on Investment : It is not aimed to procure investment bonus, but to withdraw investment by means of listing, acquisition, merger invested enterprise or other equity transfer
- Investment directly in the invested enterprise by installments
- Procurement of bank loans through Venture Capital Company security
- Partly loans on security and partly direct investment
- It has potential market
- Science and technology is specific to market demand
- It can set up market advantage
- It can become market leader
- Its management has talents and foresights
- It has significant return
- To familiar with corporate finance process
- To show corporate value
- To prepare business prospectus
- To promote enterprise
- Evaluation and due diligence
- Transaction negotiation
- To sign agreement
Project Loan
Project Loan is a kind of medium or long-term loan released for a particular purpose, which requires the project’s set up separate company to bear the loan. The cash flow and profits of the future company will be the source of repayment, the assets of which will be security on the loan.
- Project Loan without the right of recourse
Project Loan without the right of recourse is also called Absolute Project Loan, in which manner, future repayment of capital plus interest will solely depend on the operating benefit of the proper project. At the same time, lender will receive real guarantee from the assets of the project to secure its own interest. If the project fails to complete or fails to operate, and its assets or profits are not enough to repay the entire loan, the lender has no recourse to the borrower in the project. - Project Loan with the right of recourse
The lender can also require a third party to provide security, in addition to the usage of operating benefit of the loan project as source of repayment and receipt of real guarantee. The lender has the right of recourse to the guarantor, when the loan is not duly repaid in the future.
BOT Finance
BOT is the short form of “BUILD-OPERATE-TRANSFER”, which means that the government and the project company of the private consortium sign a franchise agreement, by which the project company will raise capital and build public infrastructure. The project company will own and operate this project facility, recover investment, repay loan and make reasonable profits through service charge during the period of franchised operation. After the period of franchised operation expires, the project will be transferred to government free of charge.
BOT Finance has uncertainty of loss occurring in the four stages of franchising, building, operation and transfer; therefore, it is particularly important to engage a financial professional to carry out analysis and risk assessment first and choose a suitable manner to evade risk, in order to secure normal operation of the project.
Develop Financing Plans
Financing plans are for enterprise to procure capital by issuing new shares, debentures, bank loans and financial derivatives in a portfolio in its operation.
It is important for the enterprise now to properly plan equity capital and debt-capital structure, long/short-term borrowing and debt, to plan liability period, reduce comprehensive finance cost, and develop a financial condition that is stable and balanced.
HSEC has extensive knowledge and experience in comprehensive use of various finance channels, in full consideration of finance modes, terms, costs and other factors, in order to formulate the optimal finance plan specific to the industry of the enterprise.
Cash Flow Finance
Cash flow finance is an effective financial solution for companies to ensure the smooth operation of their business activities when these activities encountered temporary and/or seasonal working capital difficulties.
Cash flow finance permits much flexibility in its operation and is suitable for businesses which require middle and short-term funding. A company may need to decide on a suitable financial solution depending on the needs of its business.
Cash Flow Finance Include:
- Bank letters of credit loans with low charge
- Loans and receivables
- Warehouse receipts/Bills of lading loans
