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FORUM - SME Financing

Raising Trade Finance in HK

25 Jun 2012 09:44




We are a HK registered trading co. with a rep office in a major city in China. We have manufacturers for a product that has very good demand as well as buyers who are keen on purchasing from us. However we are facing two main financing problems:


1. Many of our buyers want to buy on 60 Days LC. 


2. Most of our buyers pay 30% upfront and balance against BL Copy. This means, we have to pay the manufacturer first, get possession of goods and only get paid once goods are on-board. This can mean a time lag of about 10 days between paying upfront and getting payment. We can offered to do this, when we only a few orders on hand, but when we have multiple orders due to go out at the same time, we get stuck in a serious cash crunch.


I was wondering, what sort of finance options, do I have available as a HK based company and what sort of interests should I expect to pay? I would appreciate any help on this matter.

Post 1 of 5

30 Jun 2012 17:46


Please consult the HSBC for trade finance options.

Post 2 of 5

11 Jul 2012 14:41




HSBC Doesn't seem to be very welcoming of businesses with less than 3 years business history, hence the request here. 

Post 3 of 5

19 Jul 2012 11:36


Please refer to HSBC Global Connections as featured in the TDC website for more information.

Post 4 of 5

03 Sep 2013 14:38


The Trade and Industry Department (TID) of Hong Kong announced recently an SME Export Marketing Fund (EMF): Increase in Cumulative Grant Ceiling To encourage and assist SMEs in exploring new market/business opportunities, the cumulative amount of grant for an individual SME has been adjusted from $150,000 to $200,000 with effect from 10 June 2013. EMF applicants that have already received a cumulative grant amount of $150,000 will become eligible for an additional grant up to $50,000 provided that the additional grant is used for their participation in new export promotion activities. For details regarding this requirement and its implementation, please visit the TID website at www.smefund.tid.gov.hk

Post 5 of 5
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