Many customers think that financing should be done with a bank first, so why should they talk to the so-called experts? If the company borrows it, but if the boss can't borrow it, can it be difficult for experts outside the company to borrow it? The former banker told everyone that the bank is responsible for the company's loan manager, and all of them only look at documentary evidence, such as sales records, audit reports, tax statements and bank statements, to calculate the repayment capacity, but the reviewer will make adjustments to calculate the contribution pressure and loan ratio. What is the problem? Is it impossible to borrow without the above documents? Our team of professionals can make an initial assessment and provide a proposal within one day, and then refer it exclusively to the bank loan manager.
The most popular SFGS program The most popular SFGS program
To assist these enterprises in facing financing difficulties that may arise due to credit contraction in an uncertain global economic environment, the Secretary for Finance announced in the 2012-13 Fiscal Budget a series of measures to support these enterprises, including the introduction of time-limited "special incentive measures" under the Scheme, which provide credit protection for 80% of the loans approved by eligible enterprises from lending agencies with preferential guarantee fees.
SFGS – 80% Credit Guarantee Product
Since its launch on May 31, 2012, the product has effectively assisted these enterprises in obtaining loans in the commercial credit market, and the number of enterprises benefiting from the 80% Credit Guarantee product has continued to increase. In order to further reduce the financing burden of these enterprises and assist them in obtaining financing from lending institutions, the Government has from time to time introduced optimization measures for eligible credit guarantees under the 80% Credit Guarantee product.
SFGS – 90% Credit Guarantee (“90% Credit Guarantee Product”)
The Legislative Council's Finance Panel approved the relevant funding on 6 December 2019, and the 90% Credit Guarantee product under the Scheme was launched on 16 December 2019. The 90% Credit Guarantee product is designed to help smaller businesses with less operating experience to obtain financing. With the outbreak and spread of the COVID-19 virus, the business environment has deteriorated rapidly. The Government announced some optimization and relief measures for eligible credit guarantees under the 90% Credit Guarantee product.
SFGS – 100% Guaranteed Special Loan (“SFGS”)
The Financial Secretary announced the introduction of the 100% Guaranteed Ex-Concessional Loan in the 2020-21 Budget. The 100% Guaranteed Ex-Concessional Loan aims to alleviate the pressure on such enterprises that are unable to pay employee salaries or rents due to reduced revenue, helping to reduce business closures and layoffs. The 100% Guaranteed Ex-Concessional Loan is 100% guaranteed by the Government and will be open for application on April 20, 2020. With the outbreak and spread of the 2019 coronavirus, the business environment has deteriorated rapidly. In order to ease the cash flow problems of SMEs, the Government announced some optimization measures for the 100% Guaranteed Ex-Concessional Loan.
Eligible borrowing enterprises must have been in operation for at least 3 months before June 30, 2020, and their turnover in any single month from February 2020 (the "Affected Period") must have fallen by 30% or more compared with the average monthly turnover in any quarter from January 2019 to June 2020 (the "Reference Period"), and the "Affected Period" must not be earlier than the "Reference Period".
The maximum loan amount for each eligible borrowing enterprise is the sum of employee salaries and rents for 18 months, with a cap of HK$6 million. The longest repayment period is 8 years, and the longest interest-only arrangement is 24 months.
SME Financing - Comparison of SFGS Guarantee Schemes
| 80% credit guarantee | 90% credit guarantee | 100% Special Guarantee | |
| Eligibility | • Non-listed local registered companies • One year relaxation for listed companies to apply |
• Non-listed local registered companies | |
| Business operation period | When applying for a guarantee, the borrowing enterprise Days, must have been open for at least 1 Year |
Not applicable | • Already in Hong Kong by the end of June 2020 In business for at least 3 months • Any month from February 2020 Sales from January 2019 to Average for any quarter in June 2020 Average monthly turnover fell by 30% or above |
| Maximum loan amount | HK$18 million | HK$ 8 million | HK$6 million |
| Maximum warranty period | 7 years | 5 years | 8 years |
| Repayment Form | Enterprises can apply for the first 6 months The company pays interest but not principal |
Enterprises can apply for the first 12 months The company pays interest but not principal |
Enterprises can apply for the first 18 months The company pays interest but not principal |
| Loan Types | Term loans and revolving loans, There is no limit on the ratio of the two. Qualified enterprises can apply for term loans and revolving loans. |
Term Loans |
