[SME Loan Guide] Company Loans for Flexible Cash Flow and More Business Benefits

Maintaining a streamlined cash flow has already been a critical topic among small and medium-sized enterprises (SMEs) today. Insufficient cash flow may hinder operations, no matter of market fluctuations, increasing costs, business expansion, or sudden economic crises. By utilizing company loans / SME loans, operational efficiency of businesses can be significantly improved and business goals can be achieved! This article introduces solutions to address cash flow difficulties, explores suitable types of SME loan, and outlines online application steps to help entrepreneurs to find the right financial solutions.

Solutions for Company Cash Flow Challenges

Insufficient cash flow is common among SMEs, especially during economic downturn. To address cash flow challenges, entrepreneurs can reorganize funds by prioritizing necessary expenses, reducing unnecessary costs, and increasing the company's cash flow. Alternatively, business owner may negotiate with suppliers to extend payment deadlines, in order to alleviate short-term financial pressure. If you would like to acquire extra cash flow without selling any of your assets, you may consider applying for company loans / SME loans. However, when comparing with large scale business, it may be more difficult for SMEs to secure a loan application, especially for an unsecured loan. How should entrepreneurs handle this?

2 Top Loan Products for SME Owners

If you are a SME owner and looking for loan now, you may consider to apply for No-doc Loan for Self-employed^◆ to obtain funds. Applicants do not need to submit income proof, only ID card and mobile phone will be required^#.

Meanwhile, Revolving Loan can be another option for SME owner. It comes with a higher flexibility, allowing you to withdraw pre-approved revolving loan amount at any time, with the ability to adjust the repayment period and amount. Repayment period can be up to 84 months. Credit limit will be restored immediately after repayment, and will be available for withdrawal anytime without re-application.

Other Funding Options for SME Owners

Apart from applying loans from financial institutions, the government has introduced various measures to support SME funding as below:

"SME Financing Guarantee Scheme": Launched by the Hong Kong Mortgage Corporation Limited, this scheme aims to assist SMEs and non-listed companies in obtaining financing to meet business needs. This scheme contains three special concessionary measures, including "80% Guarantee Product", "90% Guarantee Product", and "Special 100% Loan Guarantee", which aimed to seize business opportunities and expand business areas.

"SME Export Marketing Fund": Administered by the Trade and Industry Department, which aims to encourage SMEs to expand markets outside Hong Kong by providing financial assistance to SMEs for participation in export promotion activities. The maximum funding amount is HK$1,000,000.

"BUD Fund": Assists individual Hong Kong enterprises in developing brands, upgrading and restructuring operations, promoting sales in Mainland China (the "Mainland Program") and other markets that have signed Free Trade Agreements (FTAs) and/or Investment Promotion and Protection Agreements (IPPAs) with Hong Kong (the "FTA and IPPA Program"). The maximum funding amount is HK$7,000,000.

Beyond the above subsidy/financing schemes, the government offers other project-specific funding. Details can be found on relevant government webpages. Funding flexibility is critical for many SME owners who are seeking for loans, however, government funding schemes may come with a complicated approval process and with a specific application period. Moreover, application may be rejected if the intended use of fund does not comply with the requirements. Based on the above, if you are looking for funding with a higher flexibility, personal loan may be a better option for you.

PROMISE Company Loans/SME Loans: Flexible and Timely Cash Flow Support

PROMISE offers Instant Personal Loan where applicants can apply online with ease. You do not need to show up in person, the loan application, agreement signing, and fund transfer can all be completed online^*. Repayment period can be up to 84 months, with no additional charges (e.g. penalty, handling fee, etc.) for making extra repayments and clearing loan in advance. The interest of PROMISE's loan is calculated on a daily basis, helping you to reduce unnecessary interest expense while enjoying high repayment flexibility. Learn more about PROMISE latest offers now!