Financing process

First, the financing process

The process of financing is usually as follows: 1. Writing: Write a business plan and deal with investors or investment managers who don't know when they will meet. Writing a business plan is not only a process of packaging and expression, but also a process of sorting out product ideas. 2. Find investors. 3. Roadshow: Participating in organized roadshows gives you the opportunity to meet many investors at once, which can save a lot of costs. At the same time, this roadshow can let you get in touch with other entrepreneurs, and it is also a good channel. 4. Interview with investors alone: roadshows leave a good impression on investors. If the first impression is passed, you will have a private interview. 5. Transaction price negotiation: The interview is to let investors know about your project and team. As for the specific investment or not, it depends on the gameplay, valuation, transfer ratio and carried interest, such as whether the preferred shares have voting rights and whether they are equipped with anti-dilution clauses. 6. Sign the letter of intent for investment: Before signing the contract, be sure to look at the terms carefully and think twice. Since the founder (ceo) is often the only one who participates in signing the contract, the ceo considers not only his own interests, but also the interests of the team, and cannot harm the partners. It is suggested that entrepreneurs with spare capacity hire lawyers in all financing transactions. 7. Sign a formal legal document: As mentioned above, this is a formal contract rather than an agreement, so please treat it with caution. 8. Equity change: It is not a simple bilateral agreement signing. This step needs to be coordinated with the industrial and commercial bureau, banks and other institutions. 9. Capital injection: the investment is officially received. 10. Actively contact investors to report the company's status: submit financial statements and operating statements to investors at a certain frequency (monthly or quarterly). 1 1. Prepare for the next round of financing: When the first round of financing has arrived, it is time to consider the next round of financing. If you are not sure, it is recommended to try the Mingde Capital Ecosphere. Mingde Capital itself is an investment. Unlike many platforms, many platforms are just intermediaries. In addition, Mingde also has more than 1.800 cooperative fund resources, and the docking rate of offline activities is high. Hundreds of people participate in each activity, and nearly 100 investors will come to the scene. Many companies have obtained financing and are very reliable in the industry. Entrepreneurs with financing intentions can try to contact. If you have any questions about financing, you can click the online consultation button below and talk to the teacher directly.

Second, fepc financing process?

FEPC mode can be divided into "FEPC" and "F/EPC" according to the source of funds. The former refers to the combination of financial institutions and social capital investment with EPC general contractor. Input, design, procurement and implementation

There are three ways in FEPC actual operation:

(1) The equity owner and the project owner * * * jointly contribute to establish the joint venture company. With the assistance of EPC contractor, the joint venture company raises project construction funds through equity transfer and long-term reply from shareholders to pay EPC project general contracting costs. In terms of centralized sources of funds and trusts, capital injection is made through securities asset management, trust plan, and the establishment of SPV entities. Supported by the owner's credit.

(II) Creditor's right type: The EPC contractor of the project applies for financing from financial institutions with its own credit, and the project owner will use it to pay the expenses through entrusted loans, trust loans or loans. The funds come from the contractor's own bank loans and securities issuance, and are supported by the contractor's credit.

(3) deferred payment: the EPC contractor of the project will finance the construction first, and pay part of the EPC project general contracting fee during the construction period, and the rest will be deferred by the project owner. The delay will be solved through self-balanced investment, budget or various financial instruments, supported by the owner's credit or the comprehensive credit of the owner's contractor.

Third, the owner risk of BOTEPC.

Risks in BOT project implementation

Credit risk: the other party cannot fulfill the promise or contract; The other party refuses to fulfill the promise or contract.

Risk of approval: BOT scheme has a long process from development to construction. If it cannot be approved in time, it will delay the project construction and lead to losses.

Completion risk: construction cost overruns; Extension of construction period; Unable to complete the construction project; The completed project can't meet the expected design standards.

Production risks: such as technology, resources, energy, material supply and quality, management, etc.

Market risk: the price of products and services; Market sales and market competitiveness, etc.

Financial risk: exchange rate changes; Interest rate changes; Inflation; Financial turmoil leads to depression; High wage rate; Financing difficulties.

Environmental risk: strict environmental laws and regulations; People are fighting.

Force majeure risks: such as war, earthquake, flood, typhoon, fire and other losses.

Political risk: changes in national policies; Political instability, etc.

The definition of risk items that the owner should bear under EPC mode is inaccurate. In the bidding stage, the owner can only give the expected objectives, functional requirements and design standards of the project, and the owner is responsible for the accuracy of these contents. If there are mistakes, omissions and irrationalities in these places, the owner shall be responsible for the increase of investment and the extension of construction period caused by the change of the owner's instructions in the construction process, such as improving functional requirements and adding key equipment.

Improper selection of contractors. In view of the characteristics of high investment, complex professional knowledge and difficult management of EPC project, and the owner's requirement that the total contract price and construction period be fixed, potential bidders may take a very cautious attitude, and the decrease of bidders may make the owner unable to choose the most suitable contractor.

At the same time, if the performance of the contractor, the experience of similar projects, the ability of project procurement and construction and the tender offer are not comprehensively considered, it is likely that the owner will choose the contractor wrongly. If the selected contractor can't complete the project well, the owner will change the contractor during the construction process, which will cause heavy losses.

Risks in the process of engineering construction

FIDIC's "Silver Book" (EPC/ turnkey project contract conditions) stipulates that the owner only bears the risk of changes in the expected objectives, functional requirements and design standards, legal changes and force majeure caused by his own breach of contract during the execution of the contract. In addition, the contract price and duration determined in the EPC project general contract will not be adjusted. Owner's breach of contract includes owner's improper performance time and performance defects in contract execution. During the execution of the contract, if the laws of the country where the project is located or the relevant policies of the government change, which will have an impact on the contractor's performance of the obligations stipulated in the contract, the contract price and construction period should take into account any increase in costs and construction period caused by the above changes, that is to say, this part of the risk should generally be shared by the owner. According to FIDIC's "Silver Book", force majeure belongs to the owner's risk. Force majeure caused by natural forces, such as earthquakes, typhoons, volcanic eruptions, etc. , the owner only bears the risk of prolonged construction period; For force majeure other than natural force, the owner shall bear the risk of prolonged construction period and increased expenses caused by the contractor's performance of contract obligations.

Fourth, fepc financing process?

There are three ways in FEPC actual operation:

(1) equity type: the project EPC contractor and the project owner * * * jointly contribute to establish a joint venture company. With the assistance of EPC contractor, the joint venture company raises project construction funds through equity transfer, long-term repurchase by shareholders and various credit enhancement provided by shareholders to pay EPC project general contracting costs. The sources of funds are concentrated in the issuance of securities and bonds, bank loans and trusts. Through securities asset management, trust plan, etc. The SPV entity is set up to inject capital and is supported by the owner's credit.

(II) Creditor's right type: The EPC contractor of the project applies for financing from financial institutions with its own credit, and provides construction funds to the project owner through entrusted loans, trust loans or loans, which will be used by the project owner to pay the EPC project general contracting costs. The funds come from the contractor's own bank loans and securities issuance, and are supported by the contractor's credit.

(3) deferred payment: the EPC contractor of the project will finance the construction first, and pay part of the EPC project general contracting fee during the construction period, and the rest will be deferred by the project owner. In the deferred payment stage, the project owner can solve the problem through self-balanced investment, financial budget or financing with various financial instruments, supported by the owner's credit or the comprehensive credit of the owner's contractor.