HSBC has decided to roll out a financing plan worth HKD 5 billion (USD 641 million) aimed at helping small and medium-sized enterprises (SMEs) in Hong Kong. The initiative is designed to simplify the loan application process for eligible SMEs by providing pre-approved credit limits.

HSBC will use internal data to evaluate the creditworthiness of applicants, allowing for faster approval decisions. Streamlining loan access for SMEs According to fintechnews.hk, the financing plan comes at a time when businesses are preparing for potential changes in interest rates, providing needed capital for SMEs that are planning investments after a period of rising borrowing costs. Eligible SMEs will receive notifications through HSBC’s digital platforms, and loans will start from HKD 50,000.

Approved funds are expected to be available within two working days, with no requirements for collateral or financial statements. Earlier in September 2024, HSBC, along with 13 other major banks, committed to improving access to financing for small businesses. This effort followed the inaugural meeting of the Taskforce on SME Lending, which was established to tackle the financial challenges faced by smaller firms in the current economic climate.

The new initiative builds on HSBC’s previous support measures for SMEs. In March, the bank introduced several offers, including fee waivers, loan extensions, and access to additional financing options. Additionally, HSBC is extending an interest rebate for businesses participating in the government-backed SME Financing Guarantee Scheme.

The rebate, capped at HKD 10,000, will now be available until the end of 2024, extending beyond the initial deadline of 30 September. Representatives from HSBC cited by fintechnews.hk emphasised the bank's ongoing commitment to supporting businesses post-pandemic. They noted that HSBC is focused on providing data-driven solutions that enhance the financial resilience of SMEs and mentioned the bank’s dedication to improving transparency in lending, helping SMEs make informed borrowing decisions.

HSBC plans to continue developing its data capabilities to simplify banking services and ensure accessible financing for smaller enterprises in Hong Kong. Source: Link .