Financing Fraud, Venture Capital Must Be Vigilant

At present, domestic financing.

In the context of international capital

The fox is cunning and has its tail.

Entrepreneurs should pay attention to the following aspects when dealing with investors.

1. although these Swindlers Company are in high-grade office buildings, they usually have only one or two rooms, office facilities are generally, or even crude.

2., the overall quality of employees is not high enough to use computers.

3. the way to negotiate with you is very mysterious.

4. whether your project is good or bad, whether you have financing conditions, it is easy to set up a project, and soon express your willingness to invest in you, and quickly request to inspect your project.

5., the business plan is written by the company designated by the company, and the company designated by the asset appraisal is generally established by the Swindlers Company or is a cooperative company which is divided into agreements. This is the fundamental difference between the true and false investment company.

Swindlers Company is making money from the project side by virtue of this.

6. let the project side finish the business plan and assets appraisal, that is, after making money, excuse the experts to demonstrate, and then tell you or tell you directly what the project is, what can not be invested, or if you have to meet the conditions you can't reach, then you can invest and so on.

7. every business letter or intent agreement issued to the project is not standardized.

The company's English introductory materials are poorly written.

Formal investment companies will not designate specialized companies to write business plans for entrepreneurs, but require entrepreneurs to provide business plans. If they are not written clearly, they may ask entrepreneurs to provide supplementary materials or do their own due diligence.

If an investment company really wants to invest in the project, it is usually the investment company and the entrepreneur who jointly entrust the evaluation company to evaluate the cost sharing or the investment company.

Backed by domestic capital

"Bank guarantee" is a credit certificate issued by a bank to a bank, which is a relatively high credit guarantee in the financial sector.

The general procedure of financing by using the bank guarantee is that the financing side applies for loans to the local bank with its project, but the bank agrees to grant loans, but requires that the guarantee conditions be perfected. The financing party has to look for the guarantor, such as the investor of a company in different places is very strong in the locality, and has a certain credit limit in the Bank of its own account. After inspecting the company's financing project, willing to make a credit investment, it signs a contract secured with the financing party in the form of "bank guarantee", and the financing party must also complete the reverse mortgage procedure with the investor. The investor, with his credit as a guarantee, proposes to the Bank of his account the application of the bank guarantee letter for the financing party, such as approval.

The main traps for such financing are:

1. the sponsor has no guarantee conditions at all, but he promises to be able to issue a letter of guarantee.

2. requires the financing side to pay a certain amount of cash as a public relations fee, without receipt, nor in the contract.

3., collusion with the internal staff of a bank is usually made by the governor, and the letter of guarantee is illegal by means of illegal means.

4. when the investor investigates the financing side, he will come up with a simple and inflexible and no modification agreement or contract to sign a contract with the financing party. The agreement stipulates that after the bank guarantee is issued and approved by the Bank of the project bank, the project owner must pay all the handling charges at once. He also requests that the project bank must lend for a maximum of two weeks.

Issuing bank guarantee is a legal and high credit.

1., verify the investor's credit line to the provincial first level branch;

2., verify whether a bank has the power to issue a letter of guarantee to a provincial branch.

3., whether the investor should seriously handle the procedures of reverse mortgage, if it is not serious or not, it must be false.

4. any fee shall be stipulated in the contract, and no payment can be made in the contract, and any payment shall have a formal receipt.

5. after the letter of guarantee is issued, it should be verified by the Credit Department of the bank.

6. the reasonable way of payment should be: guarantee the guarantee, pay half, and pay the other half after the loan arrives.

The trap of large deposit certificates and negotiable securities mortgage loans is mainly to beat the time difference, that is, the effective time of the investors to the financing parties, and the approval procedures of the higher level departments of banks can not be completed at all, so that the investors will openly eat the margin deposits of the financing parties ahead of time, and withdraw the funds.

It is suggested that the two parties should not adopt the above mentioned methods.