Running a small or medium-sized enterprise (SME) in Hong Kong often requires flexible financing solutions. For startups or businesses with limited credit history, securing loans with low barriers and fast approval is critical. Here, we analyze three accessible business loan options tailored for Hong Kong SMEs.
1. Government-Backed Schemes: Low Risk & Competitive Rates
A. 90% Credit Guarantee Scheme (SFGS 90)
This flagship program offers:
- Lenient eligibility: Companies operating for ≥1 year, annual turnover ≥HK$2M, and shareholders with TU credit ratings A-G.
- High funding limits: Up to HK$8M at 6%-8% APR, repayable over 5 years.
- Collateral-free: No asset pledges required, with approval in 2-8 weeks.
B. 80% Credit Guarantee Scheme (SFGS 80)
Ideal for established businesses:
- Stricter criteria: ≥3 years of operation, annual turnover ≥HK$2M, and TU ratings A-F.
- Flexible usage: Choose term loans or revolving credit up to HK$18M (APR 6%-10%).
Advantages: High approval rates due to government risk-sharing, capped interest rates, and no hidden fees.
2. Unsecured Bank Loans: Speedy Cash Flow Solutions
For businesses ineligible for government schemes, consider these bank offerings:
- Hang Seng Bank "Express Loan": HK$2M maximum, APR 8.19%-12.52%, available to companies ≥6 months old without financial statements.
- Standard Chartered Business Installment Loan: Up to HK$6M with a 60-month tenure, including 12-month "interest-only" repayment flexibility.
- Bank of China (Hong Kong) "SME Loan": Combines term and revolving credit (APR 6.23%-25.06%) for short-term needs.
Key features: Digital applications, fast disbursement (as quick as 48 hours), and waived audit reports for select products.
3. Licensed Money Lenders: Flexible Alternatives
For businesses lacking conventional documentation
Note: Higher APRs (up to 48%*) compared to banks—assess repayment capacity carefully.
Pro Tips to Boost Approval Success
- Prepare essential documents: Business Registration Certificate, 6-month bank statements, shareholder IDs.
- Optimize credit ratings: Aim for TU ratings A-F to secure better rates, even if G is acceptable.
- Leverage professional advisors: Financial brokers can streamline applications and improve approval odds to 95%.
Conclusion
Hong Kong SMEs have multiple financing avenues. Government-backed loans remain the safest bet for low-risk borrowing, while banks and licensed lenders offer complementary solutions. Assess your business needs, credit profile, and urgency to select the optimal loan. Partnering with financial experts can further simplify the process and ensure timely funding.
