Business
HSBC’s $641 Million Lifeline: Aiding Hong Kong SMEs with Pre-Approved Loans and Easing Capital Access Amid Rate-Cut Cycle
HSBC plans to provide a sum of US$641 million in pre-sanctioned loans to assist small and medium-sized enterprises (SMEs) in Hong Kong. The goal of this initiative is to simplify the process for entrepreneurs seeking to invest at the onset of a period of decreasing interest rates.
Hong Kong's largest bank, HSBC, is set to initiate a financing program worth US$641 million (HK$5 billion) specifically designed for small and medium-sized businesses (SMEs).
The project aims to simplify the process of obtaining funds for business owners intending to invest at the start of a cycle of interest rate reductions. HSBC announced on Wednesday that it will provide pre-approved credit boundaries to qualifying existing SME clients, specifically those whose financial reliability can be evaluated by the bank using its own data.
HSBC has also decided to prolong their proposal of a two-month interest rebate, amounting to a maximum of HK$10,000 for those applying through the government-supported SME Financing Guarantee Scheme. The new deadline will now extend until the end of 2024, pushing it further from the initial deadline of September 30.
Frank Fang, the General Manager and Head of Commercial Banking for Hong Kong and Macau at HSBC, stated that the bank has consistently supported the business sector by providing financial relief and funding choices during and beyond the COVID-19 crisis. He emphasized that the recent announcement further solidifies the bank's pledge to assist small and medium-sized enterprises (SMEs) in strengthening their financial stability through solutions tailored to the customer needs, powered by data and technology.
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