It is worth noting that entrepreneurs need to fully prepare business plans and financing roadshows. Make a good impression on investors. Also, when signing the agreement, it is recommended to find a professional to help check it. Mingde Capital Ecosphere provides financing docking, roadshow counseling, agreement negotiation and other services, and is willing to help you successfully obtain financing.
After deciding to use foreign capital, it is necessary to compare whether the investment income and capital cost and their corresponding risks match on the basis of financing demand. For example, what is the average annual rate of return (or average annual profit rate) of investment projects in the future? What is the cost (or capital cost rate) of funds occupied by financing activities? What risks do enterprises need to bear? This is the most concerned by the decision-making level of enterprise management.
Therefore, before financing activities, enterprise financial personnel must make a reliable prediction of future investment income. Only when the investment income is far greater than the cost of capital and can bear the corresponding risks can the financing activities be determined.
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