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FORUM - SME Financing

Loans or grants for small business start ups

13 Jun 2008 10:44


I have a new business idea but the Government SME Loan Guarantee Scheme is not helpful because none of the bank will lend to a new start up...they require at least 2 years operating track record... Has anyone got any ideas? I have about $3m equity and probably need a further $1m-1.5m funding.
Post 1 of 8

15 Jun 2008 12:02


The Government SME Loan Guarantee Scheme is not helpful even you had 2 or more years' operating track record. Don't dream for it as long as your business is small. If your equity is of tangible assets, try using it as a security for some bank facilities and build your business steps by steps. When you need 10 or 100 million funding, then you will find the Government SME Loan Guarantee Scheme very helpful especially when you have a good loss in your business.
Post 2 of 8

30 Jan 2009 11:09

Honestly speaking, this is possible, through small financial companies. But they will charge you at least 20% p.a. But then you still need a local referrer. Walk-in is not a choice.
Post 3 of 8

31 Jan 2009 12:15

According to the Trade and Industry Department (TID) press release issued on 2 December 2008, the Government has set up a $100 billion Special Loan Guarantee Scheme to accept applications from the participating lending institutions (PLIs) from 15 December.

The Chief Executive announced on 8 December that the total amount of Government guarantee under the Special Loan Guarantee Scheme would be increased from $7 billion to $100 billion, which would help to make available loans of about $142 billion in the commercial lending market. Depending on the actual loan size, the enhanced scheme is expected to benefit about 40,000 companies.

Under the Special Loan Guarantee Scheme, the Government will provide 70% guarantee for loans granted by the PLIs. The maximum amount of loan that each enterprise may obtain is $6 million, within which $3 million can be used as a revolving credit line.

The maximum guarantee period for each loan is three years, or up to June 30, 2012, whichever is earlier. A grace period of six months will be allowed, during which the borrower may repay the interest only. Thereafter, the loan should be repaid over a maximum of 30 months.

All companies registered and with substantive business in Hong Kong are eligible to apply, except listed companies, irrespective of industry or size of business. Application is open for six months starting from next Monday.

As of present 37 PLIs have completed the legal procedures with the Government and are ready to accept applications under the scheme. An updated list of the PLIs can be found on the website www.smefund.tid.gov.hk

Post 4 of 8

02 Feb 2009 17:07

From small financial institutions, you will only get a very small amount of money, that is not helpful to, even, a small business, except to a really tiny business. Like all other Government loan guarantee schemes, the new $100 billion scheme is, again, for a business that has a considerable size and that has already a considerable amount of debts to the bank. This is the reality that will never be agreed by the Government.
Post 5 of 8

25 Sep 2009 08:26

Hey if your looking for a loan for your personal business you should look at prosper.com they have a lot of good options and they are pretty helpful.
Post 6 of 8

06 Mar 2012 16:03

The user is now updating this post.
Post 7 of 8

17 Sep 2012 14:51

The Director of HKTDC Research Mr Edward Leung has provided in his website a listing of Hong Kong Government offers of different types of loans and funding schemes to support and promote the development of small and medium businesses in Hong Kong. Please check here for details for your reference.

Post 8 of 8
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