What should be the conditions for enterprise financing

In general, financing refers to equity financing, and formal investment companies usually include 8 steps when financing an enterprise: 1, project screening; 2, preliminary investigation; 3, project valuation; 4, signing the investment framework agreement; 5, due diligence; 6, investment decision; 7, signing the investment agreement; 8, investment management.

It is worth noting that entrepreneurs need to be fully prepared business plan, financing roadshow and so on, to give investors a good impression. Also when signing the agreement, it is recommended to get the help of professionals to gatekeep the agreement. Matilda Capital Ecosystem provides services such as financing matchmaking, roadshow coaching, and agreement negotiation, and will be happy to help you successfully get your financing done.

After deciding on the use of external funds, you should also compare the return on investment with the cost of capital and its corresponding risk on the basis of financing needs to see if they match. For example, what is the future average annual rate of return (or average annual profitability) of the investment project? What is the cost (or cost of capital rate) of capital tied up in financing activities? What risks does the enterprise need to bear? This is the enterprise management decision-making level is most concerned about.

Therefore, the enterprise financial personnel in the financing activities, must be carried out before the future return on investment to make a more reliable forecast, only when the return on investment is much greater than the cost of capital and the corresponding risk can be borne under the premise that can be determined to carry out financing activities.

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