In a transaction, a party (often the seller) may require some form of guarantee in case the other party fails to make payment or is a limited company and its creditworthiness is unknown. The party who provides the guarantee is the “guarantor”, also known as “surety” of the transactions. Hong Kong does not have a … Read more
Start-ups in Hong Kong can use debt financing to raise funds for their companies. Debt financing means when a company borrows money to be paid back at a later date. This is a good way for young businesses who want to raise funds and also maintain control over their company in Hong Kong. Debt financing … Read more
A Small Business Loan, also known as a SBA Loan, is a fixed amount of funding given to a small business in exchange for repayment of the loan principal amount plus interest. A Small Business Loan can be offered by a bank or a qualified money lender and can be used by small businesses for … Read more
A Convertible Bond is a short-term debt that converts into equity in conjunction with a future financing round. Convertible Bonds are bonds that can be converted into shares of the issuer at the discretion of the lenders. The lenders would receive equity in the company instead of principal plus interest like normal loans. Purposes and … Read more
A Simple Agreement for Future Equity (SAFE) is an agreement between a company and an investor that grants an investor the right to obtain equity at a future date if the company sells shares in a future financing. SAFE is a financing contract that start-ups can use to incentivise employees or to raise funds in … Read more
Company financing is one of the major concerns for operating any business. Debt financing and Equity Financing have been the two types of financing options that are most commonly sought after by companies in Hong Kong and around the world. Equity Financing Equity financing means someone is putting money into the business in return for … Read more
Apart from getting funds from banks or investors, start-ups and small businesses can check out the funding schemes or grants set up by the Hong Kong government. Both funding schemes and grants are sums of money given to a business in order to help them further their business, promote innovation and/or support different industries. Companies … Read more
Funding is so important when it comes to running a business. Raising funds for a start-up or a SME may feel like a daunting task, this article aims to provide you with different ways you can go about seeking funds and what legal documentations are needed respectively. After reading this, you will also find out … Read more