SME Financing Guarantee Scheme, SFGS
When running a business, cash flow is often a significant challenge for companies, especially small and medium-sized enterprises (SMEs). Due to limited assets, borrowing from banks not only involves cumbersome procedures but may also require collateral, which can be a source of distress for many businesses. To support these companies, the SME Financing Guarantee Scheme (SFGS) was established to provide an effective financing solution.
Launched in 2011 by the Hong Kong Mortgage Corporation Limited, the scheme was taken over by the Hong Kong Export Credit Insurance Corporation in 2018. Its purpose is to support SMEs and non-listed companies with cash flow needs. By participating in this scheme, lending institutions can more easily provide financing options for businesses, including unsecured loans, which not only meet urgent business needs but also help enhance productivity and competitiveness. Many successful cases show that these loans often receive approval rates of over 50%, making it easier for SMEs to thrive in their business development.
Lohs Business Accounting fully assists you in applying for the SME Financing Guarantee Scheme (SFGS) provided by the Hong Kong Export Credit Insurance Corporation, easing operational pressures during this period.
Eligibility for Company Application:
- Must be a limited company, sole proprietorship, partnership, or unincorporated body, and registered in Hong Kong under the Business Registration Ordinance (Cap. 310);
- Cannot engage in the lending business or provide funds for lending purposes through any means;
- Must not be an associated company of a lending institution; and
- Must not be listed on the Hong Kong Stock Exchange (including the Main Board or GEM) or any other exchange outside of Hong Kong.
