A Lazy Guide to Mainstream SME Business Loans in Hong Kong 2026

Frequently Asked Questions about Bank Commercial Loans

1. Will my personal credit rating (TU) affect my business loan application?
   Absolutely. For government-guaranteed loans (80-90%) or unsecured bank loans, since there's no collateral to offset the credit risk borne by the bank, the bank will review the credit report of the company's major shareholder (the applicant) to understand whether the applicant's financial situation is suitable for obtaining a new loan. Generally, personal credit ratings of A to F are easier to obtain, while lower ratings such as G, H, or I are very likely to be rejected by banks. As for property mortgage company loans, the applicant mortgages their property to the bank to apply for a loan; the credit risk is offset by the property value, therefore personal credit ratings are less emphasized.

2. What is a 90% government guarantee, and what is the difference between it and a 100% government guarantee?
   The government's 90% guarantee scheme involves the government acting as the guarantor for SMEs, guaranteeing the entire loan and reducing the credit risk borne by banks by 90%. For example, with a HK$1 million loan guaranteed by 90% of the loan amount, the government assumes HK$900,000 of the risk for the bank, significantly reducing the bank's credit risk to HK$100,000. This makes banks more willing to grant loans to SMEs and allows them to make concessions on interest rates. Otherwise, many SMEs might struggle to obtain loans due to low turnover or lack of collateral. Compared to a 100% guarantee, the 90% guarantee focuses more on the company's operational and repayment capabilities, and the loan term and interest rate also differ. For more details, please contact our company.

3. What are the main types of corporate loans?
   For SMEs, the current mainstream solution is an 80% or 90% guarantee plan. In the past few years, 100% guarantee plans had low application thresholds and thus became the mainstream loan choice. However, the plan will end on March 31, 2024, and the application difficulty has become very high, so it is gradually declining.
   In addition to government-guaranteed schemes, property mortgage loans are also an option, where individuals can use their property as collateral to obtain a loan from their company, potentially securing a higher loan amount than a regular mortgage. As for unsecured, non-government-guaranteed loans, the threshold is much higher, making them more suitable for companies with strong financial backing.

4. If the government provides a guarantee scheme with the government as the guarantor, do I also need to provide a guarantee?
   Yes, the government-backed scheme has the government as the guarantor, but the company's major shareholders, as applicants, must also assume loan responsibility and act as guarantors.

5. How much government-guaranteed loan can my company obtain, with a coverage ratio of 80% to 90%?
   Unlike fixed-amount loans with 100% guarantees, government-guaranteed loans with 80% or 90% guarantees determine the loan amount based on a variety of factors, including the company's turnover, repayment capacity, industry, and shareholder credit rating. Loan amounts can range from 100,000 to 18 million, depending on the company's operating conditions and the bank's lending policies.

6. I applied for a government-guaranteed loan before but it was rejected. Can I apply again?
   Yes, business loan approval results can vary depending on the company's current operating situation and bank policies. Business loans involve numerous credit risk factors, and SMEs generally have difficulty knowing the reasons for bank rejections. Furthermore, different banks have different approval criteria and policies. This is why business loan consultants like us exist to help understand a company's operating conditions and choose the most suitable bank for loan applications. However, we will not assist companies that intentionally deceive banks by falsifying data or other means to obtain business loans; we reserve the right to pursue legal action if such activities are discovered.

7. Which bank will you apply for a loan through? Will you borrow from a finance company?
   We only offer business loan services from major Hong Kong banks and will select the most suitable bank for your application based on your company's operating conditions, thereby increasing the success rate and loan amount. After the loan is successfully approved, the client must sign a loan letter at the relevant bank to protect your interests.
   Our company only works with local banks and does not work with any financial companies, therefore we do not offer loans from financial companies.

8. How long does it take to apply for a government-guaranteed loan?
   Because business loans require verification of a company's background and operations, and applications must be reviewed and approved by multiple banking departments, the processing speed varies depending on the number of cases handled by each bank and the complexity of each case. We have excellent communication channels with major banks, so applications submitted through us typically receive loan approval results within 2 to 4 weeks, and the loan funds are disbursed within the following 2 to 4 weeks.

9. I'd like to apply to the bank through you. What procedures are required?
   If you are interested in applying for a bank business loan through our company, please contact our account manager first.
   1) The account manager will inquire about your company's situation, make an initial assessment of your company's eligibility, and contact the thirteen partner banks, saving you time by contacting different banks. This inquiry does not constitute a direct application; the relevant documents are for loan inquiry purposes only and will not be forwarded to any subsequent institutions of the bank to protect your privacy.
   2) We will meet with eligible clients who have a chance of successfully applying to understand their company background. If you decide to apply, our company will arrange for you to sign the relevant application at the bank and assist you in communicating with the bank throughout the process, following up on the entire loan process, saving you time.
   3) Our service is unsuccessful and does not charge a fee. If you are unable to obtain a loan, you will not need to pay any fees to our company. You will only need to pay a service fee to our company after you successfully obtain a bank loan. Please consult your account manager for details regarding charges.

10. What are the chances of your application being successful?
    The success of any loan application still depends on your company's operating conditions. Our responsibility is to understand the loan approval criteria of all banks in Hong Kong, assist clients in applying to the bank with the highest success rate and the most suitable interest rate or term, and help clients communicate with the bank, answer bank inquiries, increase the chances of success, and expedite the loan process. If the chances of success are low, we will inform you immediately to save your valuable time. In 2024, the success rate of business loans applied for through our company was approximately 95%.

11. Will you assist with the application for government funding?
    Many consulting firms assist clients in applying for both loans and grants. However, our company focuses solely on business loan services, offering a comprehensive range of business loan options from all banks in Hong Kong. We do not provide applications for government-funded grants.