BUSINESS LOAN PROCESSING AS A BUYER NEED A WORKING CAPITAL

QUALIFICATIONS:

1. Provide a pro/forma invoice or description of equipment that the Chinese buyer approves.
2. Get an idea from the buyer about their financial requirement. How will they pay? When? Do they need to finance the purchase? For how long? Ask for a “Loan Authorization Schedule” that they can live with.
3. Need financial information on the buyer:
   1. three years’ financial statements
   2. interim financial statements if of a), above, is more than six months old
   3. reference letters from the buyer’s banks in China or offshore
   4. trade reference from the buyer’s main suppliers in China, or outside China, specifying the amount of trade and credit that the creditor has granted the buyer, for what term, and their payment experience
   5. an international credit agency report on the buyer an Contact a proven Ex-Im Bank Insurance broker, e.g.
4. Often buyers in China simply do not have the financial information required in 3), above. So then you need, either to find a bank in China to be the obligor on the loan to the buyer, or follow us to see another lender.
5. You’ll have to provide a background narrative on the buyer of the equipment, including the origins of the company, ownership, their relationship to/with the governing authorities in the city or province of China where the plant is, what priority that this expansion has in the city or province. Indications of support from city or province level, including financial guarantees, will add to the weight of the proposal to the lender.
6. You need provide proof to the bankers and insurance brokers that you have this business wired down. This proof may be a “mandate letter” from the buyer to source the equipment, and /or a “mandate letter” from the buyer to arrange the financing.
7. Credit report(s) on the suppliers of the equipment. Background, ownership, and export experience of the suppliers of the equipment, and the number of employees that the supplier has will be needed to add credibility to the proposal at the lender.
8. Credit report and same information as in 7), above, on the exporter of the equipment, if it is not the supplier.
9. Contact a proven Ex-Im Bank insurance broker who can help you with the international credit report and the medium-term credit application with our suggestion.

STEPS IN PROCESSING BOTH EQUITY AND DEBT CAPITAL RAISING

1. Conduct industry analysis.
2. Benchmark competitor financings.
3. Help refine business plan, powerpoint’s and pro-forma financials.
4. Target capital sources.
5. Ensure congruence between the sales & marketing content and the financial projections.
6. Dress rehearsal-coach & video tape the management team.
7. First round calls—market the offering to institutional.
8. Engage capital sources in screening calls & initial meetings.
9. Collate feedback & update the presentation materials.
10. Conduct second meetings & initiate due diligence procedures.
11. Create and negotiate the tern sheet.
12. Create or facilitate a syndicate if necessary.
13. Close financing round.

-Photos-

Visit Shanghai Municipal Administration of Foreign Investment, April 5, 2002.	Visit Shanghai Yangpu District Government, April 5, 2002.
Trade conference with Taizhou Municipal Government, November 13, 2002.	Trade conference in Sofitel Hotel Shanghai, March 22, 2003.
Investment seminar in Landmark Hotel Guangzhou, March 31, 2003.	Trade conference in Telecom Hotel Beijing, November 11, 2002
Investment seminar in Shenyang, March 31, 2002.