Huarui TIF Unit Went Online to Try out Investment-lending Model
ReleaseDate: 2016-06-15


On March 29, the TIF Business Department of Huarui Bank formally kicked off. TIF is one of the three strategic business units of Huarui Bank, on the one hand it is dedicated to offering loan support to startup companies already having access to venture capital, help startup enterprises to pursue healthy and continual development; on the other hand it actively take part in structural fund-raising of venture capital funds to become LP (limited partner) of venture capital funds, and promote strategic cooperation with elite venture capital institutions.


Huarui Bank TIF Business Department mainly serve borrowers who are enterprises being granted venture capital. Under this model, Huarui Bank can rely on professional expertise and investment ability of venture capital organizations to better keep risks under control. For startup enterprises, the debt financing service supplied by Huarui Bank can both satisfy enterprise needs for capital in the development process, meanwhile it can enable enterprises to avoid excessive dilution of enterprise equity when seeking financing.


“How to walk a road with self characteristics among private banks? There will be no space for gaining foothold if we lack originality and uniqueness. US Silicon Valley Bank now has total asset of about USD 5.5 billion, equivalent to over RMB 30 billion yuan, in which about 10-15% is supplied to hi-tech enterprises and PE/VC institutions, this percentage has qualified it as a bank with distinct feature in the global context. When the TIF business accounts for over 10% in Huarui Bank’s total business volume, our features will become very obvious.” Huarui Bank Chairman Ling Tao said.