Enterprise loans
Match with multiple SME loan platforms
Get the highest loan amount with the lowest interest rate!
SME Financing Guarantee Scheme
When operating a company, it is inevitable to encounter financial challenges that require seeking commercial loans from banks or financing companies. However, the application process for traditional bank commercial loans can be complex and may not always meet your funding needs in a timely manner. In such cases, as a professional financing company, our center deeply understands the financial needs of small and medium enterprises (SMEs) and is committed to providing flexible and convenient commercial loan services to help you address financial difficulties and drive business growth.
To assist local SMEs and non-listed companies in meeting business demands, enhancing productivity, and boosting competitiveness in a rapidly changing business environment, the government, in collaboration with participating lending institutions, has introduced a range of credit guarantee products under the “SME Financing Guarantee Scheme.” These offer flexible financing solutions to support enterprise development.
Currently, more than 20 lending institutions participate in the “SME Financing Guarantee Scheme,” including Bank of China (Hong Kong), DBS Bank, Hang Seng Bank, Standard Chartered Bank, and HSBC, among others.
Through the “SME Financing Guarantee Scheme,” businesses can obtain the necessary financial support to tackle operational challenges and seize development opportunities.
- Maximum Loan Amount: HKD 18 million
- Maximum Guarantee Period: 10 years
- Repayment Terms:
- The loan must be repaid in installments and fully amortized before the end of the guarantee period. The interval between each repayment must not exceed 3 months.
- If the borrower is a company applying for the loan, it may choose to pay only interest within the first 6 months from the loan start date, with the principal repaid in installments along with interest over the remaining period.
- The guarantee period will not be extended due to the interest-only arrangement for the first 6 months.
- Maximum Loan Amount: HKD 8 million
- Maximum Guarantee Period: 8 years
- Repayment Terms:
- The loan must be repaid in installments and fully amortized before the end of the guarantee period. The interval between each repayment must not exceed 3 months.
- If the borrower is a company applying for the loan, it may choose to pay only interest within the first 12 months from the loan start date, with the principal repaid in installments along with interest over the remaining period.
- The guarantee period will not be extended due to the interest-only arrangement for the first 12 months.
- Maximum Loan Amount: HKD 9 million
- Maximum Guarantee Period: 10 years
- Repayment Terms:
- The loan must be repaid in monthly installments and fully amortized before the end of the guarantee period.
- If the borrower is a company applying for the loan, it may choose to pay only interest within the first 12 months from the loan start date, with the principal repaid in installments along with interest over the remaining period.
- The guarantee period will not be extended due to the interest-only arrangement for the first 12 months.
Other Credit Guarantee Products
In addition to the main products mentioned above, the scheme also offers 50%, 60%, and 70% credit guarantee products to meet the varying needs of different enterprises.
SME Service Support
Matching You with Dozens of Banks to Find the Highest SME Loan Amount and Lowest Interest Rates
Government SME Financing Guarantee Scheme
The "SME Financing Guarantee Scheme" (SFGS) is a government-supported loan program provided by HKMC Insurance Limited, a wholly-owned subsidiary of the Hong Kong Mortgage Corporation (HKMC). The scheme aims to assist small and medium enterprises (SMEs) in Hong Kong in obtaining financing through participating lending institutions. It addresses business needs, helps SMEs remain competitive in a rapidly changing business environment, and promotes sustainable development within their industries.
Local and Mainland Property Loans
Committed to providing flexible building mortgage solutions for individuals and businesses, these loans cater to various needs, whether for self-occupation, investment, or large-scale corporate investments. Under the Hong Kong Mortgage Corporation’s Mortgage Insurance Programme: Properties priced at HKD 10 million or below: Maximum loan-to-value (LTV) ratio of 90%. Properties priced between HKD 10 million and HKD 11.25 million: Maximum LTV ratio of 80% to 90%, with a loan cap of HKD 9 million. Properties priced between HKD 11.25 million and HKD 15 million: Maximum LTV ratio of 80%.
Government-Funded Advisory Services
The "Dedicated Fund on Branding, Upgrading and Domestic Sales" (BUD Fund) is a subsidy scheme established by the Hong Kong SAR Government in June 2012. It aims to assist local SMEs in enhancing competitiveness through branding, upgrading, and expanding into domestic markets, particularly in mainland China and economies with free trade agreements (FTAs) or investment agreements with Hong Kong.
SME Unsecured Loans
Small and medium enterprises (SMEs) often require additional funds during operations to cover daily expenses or drive business growth. Unsecured loans, which do not require assets as collateral, offer SMEs a flexible way to access necessary funding. Selecting an appropriate unsecured loan product can help SMEs manage cash flow effectively and support business development. It is recommended to thoroughly compare different loan options and seek professional advice before applying.
Seize Business Opportunities and Achieve Success Together
How We Help You Expand Your Business:
Financial Support: Address your financing needs.
Matching You with Diverse Financing Options
We pair you with a variety of financing choices, including unsecured SME loans, high loan-to-value mortgages, and government-subsidized programs, helping you secure the funds you need at critical moments to alleviate cash flow pressures.
Professional Advisory Services: Assist you in planning for the future.
Cross-Border Business Support: Facilitate your expansion beyond borders.
Flexible Solutions: Enhance your competitiveness.
Whether you’re seeking a breakthrough or aiming to further strengthen your market position, we will be your trusted partner. Let us help you seize opportunities, expand your business reach, and achieve greater success!
Key Eligibility Criteria for the Government SME Financing Guarantee Scheme
- 80% Credit Guarantee Product:
- Open to non-listed enterprises registered in Hong Kong.
- Must have been in operation for at least 1 year as of the guarantee application date.
- 90% Credit Guarantee Product:
- Open to non-listed enterprises registered in Hong Kong or professionals intending to start a business.
- No minimum operational period required.
- 100% Special Concessionary Loan:
- Open to non-listed enterprises registered in Hong Kong.
- Must have been in operation in Hong Kong for at least 3 months prior to March 31, 2022.
- Must demonstrate a revenue drop of 30% or more in any single month since February 2020, compared to the average monthly revenue of any quarter between January 2019 and March 2022.
- 80% Credit Guarantee Product:
Our Center’s Team
Our team comprises seasoned professionals in banking and commercial lending, providing robust support for financing companies’ operations and helping businesses address their funding needs. With members from diverse financial backgrounds, we bring deep expertise and extensive practical experience, making us a trusted and reliable partner for our clients.
Experienced Banking Leadership Background
Our team consists of former senior executives from corporate banking, including:
- Senior Vice Presidents: Experts in high-level decision-making and loan strategy planning.
- Department Heads: Well-versed in various banking divisions, with a deep understanding of market demands.
- Leasing Department Heads and Loan Project Managers: Skilled in lease financing and loan product design.
- Relationship Managers: Equipped with frontline service experience, adept at precisely identifying client needs.
- Government Funding Program Managers: Knowledgeable about the application and execution processes of government-subsidized schemes.
Professional Expertise and Experience
With years of accumulated expertise and banking experience, our members are well-acquainted with the commercial lending programs, approval criteria, and operational processes of major banks. This ensures that our clients receive tailored solutions that meet their specific needs.
Keen Insight into Market Dynamics
Several team members have been involved in market analysis and strategic planning, giving us a sharp understanding of changes in the financing markets in Hong Kong, mainland China, and beyond. This enables us to offer forward-thinking advice to our clients.
Comprehensive Business Support
Our professional expertise spans multiple financing domains, including bank loans, lease financing, unsecured loans, and government-subsidized programs. Whether it’s addressing urgent funding needs or planning for long-term growth, we provide one-stop support to drive your success.
Creating Value for Our Clients
Our team places client needs at the heart of everything we do, leveraging deep professional expertise and extensive industry resources to craft tailored financing solutions. Here’s how we drive success for our clients:
- Efficient Loan Application Process: With our in-depth understanding of bank approval criteria, we streamline the application process, reducing turnaround time and increasing success rates.
- Flexible Funding Solutions: We offer personalized financing options based on your business characteristics and financial situation.
- Trust and Transparency: We uphold integrity in all our operations, ensuring every transaction is open and transparent, fostering long-term partnerships with our clients.
Our success stems from our team’s professional strength and sharp focus on understanding client needs. We look forward to collaborating with more businesses, delivering professional, honest, and innovative services to support your steady growth! For more information, feel free to contact our team anytime!
Frequently Asked Questions (FAQs) about Applying for the SME Financing Guarantee Scheme (SFGS)
Below are common questions and answers regarding the application for the SME Financing Guarantee Scheme (SFGS), designed to help businesses better understand the details of the program.
1. Who Can Apply for the SME Financing Guarantee Scheme?
Enterprises Meeting the Following Conditions May Apply for the Scheme:
- Must be a limited company, sole proprietorship, partnership, or unincorporated body.
- Must be registered in Hong Kong under the Business Registration Ordinance (Chapter 310) and have substantial business operations in Hong Kong.
- Must not be engaged in lending activities or provide funds in any form for lending purposes.
- Must not be an associated company of a lending institution.
- Must not be listed on any stock exchange in Hong Kong or elsewhere.
2. What Types of Loans Does the Financing Guarantee Scheme Offer?
The Scheme Offers Various Types of Loan Guarantees, Including:
- 80% Credit Guarantee Product (SFGS 80):
- Maximum Loan Amount: HKD 18 million
- Maximum Guarantee Period: 10 years
- 90% Credit Guarantee Product (SFGS 90):
- Maximum Loan Amount: HKD 8 million
- Maximum Guarantee Period: 8 years
- 100% Special Concessionary Guarantee Product (SFGS 100, Application Closed):
- Maximum Loan Amount: HKD 9 million
- Maximum Guarantee Period: 10 years
3. What Documents Are Required When Applying for a Guaranteed Loan?
Documents Required for Application:
– Business Registration Certificate.
– Certificate of Incorporation (applicable to limited companies).
– Financial statements or tax returns for the most recent 2 to 3 years.
– Bank statements.
– Explanation of loan purpose and relevant supporting documents (e.g., purchase contracts).
4. What Can the Loan Be Used For?
Loans Supported by the Financing Guarantee Scheme Can Be Used for the Following Purposes:
- Working capital or general business operations.
- Purchase of equipment, machinery, or office facilities.
- Payment of employee salaries.
- Business expansion or investment in market development.
- Other legitimate purposes related to the business.
Note: Funds cannot be used for investments, stock trading, or lending activities.
5. Is Collateral Required When Applying for the Loan?
Collateral Requirements for 80% and 90% Guarantee Products:
The 80% and 90% guarantee products do not require applicants to provide collateral, though this may depend on the specific requirements of the lending institution.
6. How Long Does the Approval Process Take?
Approval Timeline:
Generally, the process from submitting an application to completing the approval takes approximately 4 to 6 weeks. The specific duration depends on the processing efficiency of the lending institution and the completeness of the application documents.
7. How Are Guarantee Fees Calculated?
Guarantee Fee Calculation:
The guarantee fee is calculated based on the loan amount, guarantee percentage, loan term, and the results of the loan risk assessment. Applicants can inquire about the detailed guarantee fee calculation from the lending institution prior to submitting their application.
8. Can I Apply to Extend the Repayment Period if Needed?
Extending Repayment Terms:
Borrowing enterprises may apply to the lending institution for an extension of the repayment period or an “interest-only, no principal repayment” arrangement, subject to the approval of both the lending institution and HKMC Insurance Limited.
9. Can I Apply for Other Government Funding Programs Simultaneously?
Simultaneous Applications for Other Government Funding:
Yes, enterprises can simultaneously apply for other government funding programs, such as the “BUD Dedicated Fund” or the “Export Marketing Fund,” provided that the funding purposes of the different programs do not overlap.
10. If My Application Is Rejected, Can I Reapply?
Reapplying After Rejection:
Yes, if an application is rejected, the enterprise can refine the application materials or adjust the application conditions based on the reasons provided by the lending institution and resubmit the application.
11. Is There a Fee to Apply?
Application Fees:
No fees are required at the time of application. Fees will only be charged after the SME’s financing loan is successfully approved and the loan amount is disbursed.
If the financing loan is approved but not accepted, no fees will be incurred.