HSBC is set to introduce a HK$5 billion (US$641 million) financing plan, offering pre-approved loans to SMEs in Hong Kong, as reported by the South China Morning Post.
The programme aims to streamline the loan application process, offering pre-approved credit limits to eligible SME customers, with HSBC using its internal data to assess creditworthiness.
The initiative comes as businesses anticipate potential changes in interest rates, providing crucial capital for SMEs looking to invest after a long period of rate hikes.
HSBC will notify eligible SMEs through digital channels, with credit amounts starting from HK$50,000.
These funds will be made available within two working days of approval, without the need for collateral or financial statements.
Earlier this month, HSBC, along with 13 other major lenders, pledged to improve access to funding for small businesses and accelerate loan approval timelines.
This followed the first meeting of the Taskforce on SME Lending, which was established to address the economic challenges currently faced by smaller businesses.
This latest initiative builds on HSBC’s previous measures to support SMEs.
In March, the bank rolled out a series of offers and services, including fee waivers, loan extensions, and access to new financing options.
More than 7,000 SME customers have already benefited from these programmes.
Additionally, HSBC is extending an interest rebate offer for businesses participating in the government-backed SME Financing Guarantee Scheme.
The rebate, capped at HK$10,000, will be available until the end of 2024, extending the original deadline of September 30.
Frank Fang, HSBC’s Head of Commercial Banking for Hong Kong and Macau, noted that the bank remains dedicated to supporting businesses both during and after the pandemic, focusing on providing SME-centric, data-driven solutions to bolster financial resilience.
He added that HSBC is committed to enhancing transparency in SME lending, helping businesses make informed borrowing decisions for their operational and growth needs.
The bank also plans to further develop its data capabilities to ensure accessible financing and simplified banking services for smaller enterprises in Hong Kong.
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