HSBC Eases Lending to Rescue SMEs: Final Sprint for the 90% Credit Guarantee!

Hong Kong's small and medium-sized enterprises (SMEs) are facing funding pressures, especially as the government's 90% Credit Guarantee Product (SFGS 90) is set to terminate on March 31, 2026. HSBC Bank has launched a fast-lending scheme to help SMEs overcome challenges, injecting a strong boost into businesses. This article will delve into the advantages, application requirements, and key considerations of this loan product, helping enterprises seize the final opportunity.

Introduction to the 90% Credit Guarantee Product (SFGS 90)

The government's 90% Credit Guarantee Product is a loan guarantee scheme designed specifically for SMEs to address funding shortages. The product provides 90% guarantee from the government, with banks bearing the remaining risk, making it easier for SMEs to obtain loans.

As one of the main participating banks, HSBC offers a maximum loan amount of up to HK$8 million, with no operating history restrictions, making it suitable for startups and small businesses. The loan term can extend up to 8 years, with flexible repayment options, including a 12-month interest-only period to ease initial repayment pressures for enterprises.

Key Advantages of HSBC's Loan Scheme

Maximum Loan Amount of HK$8 MillionMeets the funding needs of enterprises of various sizes, whether for business expansion or covering operational costs, providing ample financial support.

No Operating History RestrictionsStartups are also eligible to apply, breaking the traditional loan requirements for operating history and benefiting more emerging businesses.

Maximum Guarantee Period of 8 YearsLong repayment terms allow enterprises to arrange repayment plans based on their cash flow, reducing financial stress.

12-Month Interest-Only PeriodIn the first year, only interest payments are required, allowing enterprises to allocate more funds to business development and enhance competitiveness.

Funds Available in as Little as 3 WeeksEfficient application process ensures quick access to funds, helping enterprises promptly resolve funding shortages.

Application Requirements and Process

HSBC Bank's basic requirements for applicant enterprises include:

• The enterprise must be registered and legally operating in Hong Kong

• Provision of basic financial information and proof of operations

• No operating history restrictions, suitable for startups

• Applicants must meet the bank's credit assessment standards

The application process is simple and straightforward:

1. Contact HSBC Bank or a designated loan advisor, submit the application form and required documents

2. The bank conducts credit assessment and approval

3. Sign the loan agreement upon approval

4. Funds can be disbursed in as little as 3 weeks

   
   

Enterprises should prepare application materials as early as possible to avoid missing out on quotas.

Why Seize the Final Opportunity?

The government's 90% Credit Guarantee Product will terminate on March 31, 2026, meaning SMEs will lose an important low-cost financing channel afterward. HSBC Bank still has available quotas, and missing this application window could lead to stricter loan conditions and higher financing costs in the future.

Moreover, the current economic environment is full of uncertainties, and enterprises need stable funding support to respond to market changes. Utilizing this loan product not only alleviates funding pressures but also provides momentum for business development.

Real Case Studies

A startup tech company, established for only one year, successfully applied for HSBC's 90% Credit Guarantee Loan due to the lack of operating history restrictions. The company used the loan funds to purchase equipment and expand its team. The 12-month interest-only arrangement allowed them to focus on product development, ultimately enabling a successful market entry.

Another retail enterprise, facing sales declines due to the pandemic, quickly obtained funds through this loan to replenish inventory and operational capital, avoiding a cash flow crisis and maintaining stable operations.

These examples demonstrate that HSBC's loan scheme provides substantial assistance to SMEs at different stages and in various industries.

How to Prepare Application Materials

To increase the success rate of applications, enterprises should prepare the following documents in advance:

• Company registration proof documents

• Financial statements for the most recent two years (if available)

• Business plan or explanation of fund usage

• Bank transaction statements

• Other relevant operational proof documents

Clear and complete documentation can speed up the approval process, allowing funds to be disbursed faster.

Conclusion

HSBC Bank's 90% Credit Guarantee Product is crucial support for SMEs during periods of funding difficulties. With the government guarantee scheme set to terminate soon, enterprises must seize the final application opportunity. This loan not only provides high-amount funding support but also offers flexible repayment arrangements, making it particularly suitable for startups and small businesses.

If your enterprise is facing funding pressures, now is the time to act. Contact HSBC Bank immediately, submit your application, and inject a strong boost into your business to meet future challenges.