As an international financial hub, many businesses in Hong Kong have trade with companies around the world. This arises funding problems for SMEs and start-ups in Hong Kong, as they have their cash locked in unpaid invoices. While traditional method such as bank loan is a mainstream of financing in the past, the emerge of online platforms together with financial technology provides more alternatives to the businesses.Venture Capital
Venture capital is one of most common methods for start-ups to raise early-stage capital. It is usually contributed by firms and funds to support an early business which has high potential growth. In return, the contributors become shareholders of the company.
Venture capital plays a crucial role in business funding because funders are usually well-experienced and have strong financial backgrounds. They can give advice and facilitate future growth of the business
Peer-to-peer (P2P) Financing
Peer-to-peer financing is a new market for money lending in Hong Kong. With an online platform, potential lenders can be matched with borrowers to finance companies’ business operation.
P2P financing can lower the transaction cost by offering a lower interest rate for business to borrow money. The whole process will also be shortened so that companies can receive the funding in a shorter period of time.
Crowdfunding helps a company to raise money from a large number of people. Through an online platform, every individual can invest in a certain project or venture by providing a small amount of money to the initiator.
Crowdfunding is a common financing method for many companies in their initial stages. By crowdfunding, companies can attain low-cost capital since the funders can be from around the world. The amount of capital may be larger than traditional financing under a wide coverage.
Invoice financing is an effective financing method which targets at trading companies. A company can sell its accounts receivable to potential investors at a discount through different platforms such as Qupital. Business can receive cash immediately after successful matching with the third parties.
Invoice financing is beneficial to SMEs because it can solve their cash flow problems. This financing method can allow them to meet their immediate cash needs so that they can reinvest the capital for further development as soon as possible.
Qupital is a leading invoice financing platform in Hong Kong that maximizes the benefits to the customers. With Qupital, customers can get the money within 24 hours through a fast and simple process. The transaction cost will also be minimized by auction and flexible mechanism. All these can ensure customers can receive the money as soon as possible at a competitive rate.