If you read BizMagnet Insights constantly, you must know that proof of substantive operation is essential for BUD application. Then, some may ask, “How much should a company make in a year to qualify as a BUD applicant?” $500,000? $2 million? Or even $4 million. Stop guessing, let us see how the professional BUD consultant advise.
No quantitative standard for substantive business proof
First of all, if there is anyone telling you that “you should make some millions first”, don’t believe it immediately. Government officers always talk about procedural, and according to the BUD application guide, substantive business proof is just enough. There is no requirement of revenue amount in the guideline at all. Some funds do have quantitative requirement. For example, the Export Marketing Fund is only for service provider less than 50 persons or manufacturer less than 100 persons (which is the government definition of SME). Nevertheless, there is no so-called minimum requirement in the BUD Fund.
Some government fund consultants claim that there is a minimum revenue requirement, and we believe that it is due to their tactical “guarantee or payment back”. Actually these consultants will carve up client’s interest after all. The claim is an excuse to reject small companies.
BUD trivia: The Blind Spot of BUD Fund
Holistic consideration for BUD application
The basic principle of BUD Secretariat vetting is the overall reasonableness of the BUD project. Number of employees, business nature, technology requirement, as well as local market and economy etc are all factors to consider. One million revenue means differently for sectors. It is not a big deal for a manufacturer with 1% marginal profit percentage, while it is totally different for a professional service provider. Therefore revenue is one factor only and not all the requirement of the BUD Fund application. It is not a “one size fits all” ruler. Only continuous experience can help precise analysis and never exists a shortcut. Recently, the executive director of Hong Kong Productivity Council (HKPC) Mr Mohammed Butt mentioned that the BUD Fund grant increased by 12% in the first half of 2020. It shows that there are plenty of BUD successful cases.
BizMagnet government fund consultancy assists Hong Kong firms’ application. We provide consultation services of BUD Fund, Technology Voucher Programme (TVP) etc. We build client success together and welcome for inquiries.
Further reading: BUD Success: Metal Die Casting