How to prevent financing fraud?

Whether you are an investor or an entrepreneur, if you are not careful when choosing, you will fall into the trap of scammers. Here, China Venture Capital Network reminds investors and entrepreneurs to keep their eyes open and not to trust suspicious companies and individuals easily. Investors must conduct detailed market research and market analysis before investing and cannot easily If you believe in the high returns promised by the other party, you should consult industry experts and legal professionals in advance for unfamiliar investment areas. Entrepreneurs must not believe the investment commitments made by so-called investment companies and rashly pay so-called evaluation reports, feasibility plans, legal fees, etc. to illegal companies. The following will reveal the secrets of several common deceptions in the investment project market. Investors and entrepreneurs should take warning and not make the same mistakes again. 1. Transnational investment group-style fraud: At present, Chinese law does not have good sanctions against similar commercial fraud, resulting in such crimes being rampant in the investment and trade fields. They are often named in the name of XX International Group. Some also appear in the form of venture capital companies and funds. First, they will look for project holders and patent holders who are eager to obtain investment. Then they will give high praise to the project and make high investment commitments. When people think that their dreams will come true, they will immediately ask for fees from the project party using many excuses such as project evaluation, feasibility analysis, financial consultants, lawyer impartiality, etc. Once the project party pays the above fees, they often use several completely worthless documents. If the project side is stuck with documents, the subsequent investment will be postponed again and again. Often, every project party will encounter a lot of harassment from similar investment companies after announcing the project. Of course, there will also be investors who are really interested in the project. At this time, it is very important to distinguish the true from the false. In fact, as long as the project party has a correct attitude and observes carefully, it is easy to discover the flaws of the so-called "investment company". ·Look at the website. Whether it is a formal company or a scam company, they will have their own website. Scam companies often use the name of international groups, so just observe their English version of the website. If the English website has less content than Chinese or is rough in production, then this company is There is no doubt that it is a scam company, because if the website is made abroad, the style is quite different from the domestic website, and at the same time it is well designed. ·Look at enthusiasm. A real investor will not be very enthusiastic about you from the beginning. Even if he is really interested in your project, he will not give a high evaluation of your project from the beginning, but Try to find faults with you, but there is a big difference between scammer companies. They are often very proactive and contact you frequently, while turning a blind eye to obvious shortcomings in the project. ·Whether there is a fee? It is normal for investment intermediary companies to charge intermediary fees. At the same time, most of them are only charged when the project is successfully financed. However, investors as the main investment entities cannot charge any fees from the project people. ·Are there any successful cases? Large investment groups have often invested in many companies and projects. These are well-documented. You can verify this information on their own websites and news reports. If an investment company does not have such records, it is basically certain. It's a scam company. 2. 10,000 yuan to join, annual profit of 1 million. Nowadays, many investment websites publish a large number of project investment information. Without exception, these information all claim to have very generous returns. It cannot be ruled out that some of these projects can make money, but most of them are actually It is a trap that takes advantage of domestic employment difficulties and the mentality of many people who are eager to start a business to commit fraud. Because they have legal procedures, all documents are complete, and they also sign contracts, causing losses to investors, they can use poor management as an excuse to shirk responsibility. , the law basically has no way to punish them, so the same group of scammers continue to create myths about getting rich in different industries. If one project is almost deceived, they will immediately switch to another new project. In short, it becomes more and more attractive and professional. It is relatively difficult to identify this type of fraud, because they often target small investors who get rich based on entrepreneurship. They often do not have deep industry experience and investment experience, so they are easily deceived by cleverly packaged investment projects. Entrepreneurs are reminded that if they join, they must choose a company with a brand and reputation to join. Don't believe in the myth of getting rich overnight. If you run a small business, all wealth is earned through hard work. Tips: ·Don’t believe in processing projects that claim to provide materials and products that are 100% recycled. Because the operating cost of sending materials to franchisees and then recycling the finished products is much higher than the cost of setting up a factory yourself, and the quality cannot be guaranteed. How could a real operator do such a stupid thing? ·Projects with a return on investment significantly higher than the industry average must be fraudulent.

·Projects with inaccurate estimates of franchisees' investment and income, such as a catering project, where the rent and store costs are calculated based on the fees in remote areas, but the income is calculated based on the flow of people in bustling areas. How can the franchise not lose money in this way? reason? · High-tech products are made by the private sector. Simple equipment and local methods can produce high-tech products with better performance and lower prices. There are not many good things like this. If anyone had this ability, he would have won the Nobel Prize long ago. I won’t teach it to you here.