How to raise capital in China?
July 13, 2011 10:02 PM Subscribe
How can my Hong Konger friend find some money/investors for his rapidly growing fabric company as soon as possible in China?
posted by pakoothefakoo to Work & Money (1 answer total) 1 user marked this as a favorite
My friend started a fabric trading partnership in China approximately a year ago and the company has grown faster than his expectations and he's facing the classic capital squeeze / bootstrap problem.
They're getting orders left and right due to excellent product quality, fast turnaround time, and customer relationship, however they're having difficulty raising enough capital to cover the gaps in cash flow.
The business is solid and making money, but they made the classic blunder of not having a capital plan from the onset. Also since they are a Wholly Owned Foreign Enterpise (WOFE) it's extremely difficult, if not impossible to get loans from Banks in China.
Which brings me to my question, where and how can they raise capital in China (or anywhere)? Where can they find potential investors on a somewhat short notice?