Financing for a start-up company in Hong Kong comes with various methods, including trade credit, bank loans, business angels, and private investors. The most popular form of financing for a start-up company is a commercial bank loan. To apply for a commercial bank loan, you must submit a business plan to the bank and share all details about your company, past market position, and projects with them. The business plan is like a business prospectus, a document that describes your start-up company’s nature and goals. It helps the lender to make an informed decision on whether to approve your application or not.
Before you apply for bank financing, your start up company Hong Kong must have a business plan that will explain in detail the products or services that the company will offer to its customers. The products or services that you will be offering must be based on market trends. Your company must also prepare a written strategy about the management of its resources.
The start-up company in Hong Kong must also have a written operational contract with the landlord. This contract should include all the specific operations of the start-up company in Hong Kong. Also included in the document are the responsibilities and obligations of the landlord. In turn, the landlord will provide you with the necessary approval for the start-up company’s operations. In addition to these documents, the company must also have a Board of directors responsible for making financial decisions.
Another essential requirement of start-up companies in Hong Kong is to have a trade credit facility from the credit association that they belong to it. The credit association will issue trade credit to your start-up company. The credit association issues trade credit to companies that have been established and have been functioning for one year. After you have obtained the credit association’s trade credit, you can use it to purchase raw materials that you need for your company’s operations. You will then be able to repay the trade credit within a specified period to the credit association once your company has been established and has been operating for at least one year.
You can use the trade credit funds to pay the employees’ salaries and use the trade credit amount to purchase the supplies you need for your company. If you do not have money to invest, you can obtain the start-up company’s loan by obtaining a mortgage from the mortgage company you are dealing with. You can use the mortgage as capital. Once your company becomes profitable, you can withdraw the money from the mortgage and pay back the mortgage lenders.
There are other benefits of getting started through equity crowdfunding. One advantage is that you do not need any funding to get started. In other words, you do not need any investments from private investors and banks. If you create a start-up company from scratch, you may not even need to put up capital for it because you may still be required to find a business partner with some experience in the industry.
Another benefit of doing it the traditional way is that you will be limited in your products’ choices to launch. In other words, you will only have the option of either developing your products or selling the existing products of other companies. However, in the start-up company method, you will be given the freedom to choose which products you want to develop and sell. Once you are already established in the market, you can further develop your product line or branch out to other electronics and apparel manufacturing industries. You can also choose to open a manufacturing business so that you can become a retailer. Whatever you want to do with your start-up business, it is always good to know that you can be different from the rest of the competition.
Finally, through equity crowdfunding, you can gain a lot of contacts. It includes connections with significant producers of the products you want to develop or want to sell. With this said, there are lots of benefits that you can obtain through equity crowdfunding for your start-up company.