Hang Seng Bank sets up HK$33bn fund to support SMEs in HK

Hang Seng Bank has unveiled the HK$33bn SME Power Up Fund, to support the growth, cross-boundary development, and sustainable progression of Hong Kong’s small and medium-sized enterprises (SMEs).

Among the local SMEs that Hang Seng is serving, over half of its SME customers have sustained partnerships exceeding a decade, and more than 60% of new customers are start-up ventures, according to the release.

Hang Seng has gained deep insight into the trials SMEs confront in the post-pandemic environment through direct engagement with clients across various industries. These challenges range from inadequate cash flow, hard-to-regain business momentum, escalating operational expenses, the necessity for eco-friendly practices, and aspirations to grow within the Greater Bay Area.

In response to the feedback gathered from diverse business sectors, Hang Seng has allocated HK$33 billion for the establishment of the SME Power Up Fund. This move is a proactive step that corresponds with the Hong Kong government’s supportive measures for SMEs.

In a conversation with MARKETING-INTERACTIVE, a spokesperson from Hang Seng said the HK$33bn SME Power Up Fund is a strategic initiative for SMEs in Hong Kong, which are crucial economic drivers in the city.

The fund provides financial support for SMEs to grow and develop, whether in domestic market, through southbound expansion from the mainland, northbound expansion into the GBA, or sustainable progress, said the spokesperson. 

"This proactive step aligns with the Hong Kong government's supportive measures for SMEs. By offering them the necessary capital to expand their operations and seize growth opportunities, we look to contribute to the overall economic growth of Hong Kong," the spokesperson added.

The SME Power Up Fund includes an array of diversified loan offerings, including products like the 80% and 90% guarantee product under the SME Financing Guarantee Scheme, alongside specialised products such as Innobooster loan, trade finance, revolving loan, and environmentally friendly options like the SME green loan and social loan. A key component is the SME Business Loan, tailored to address the diverse financial requirements of SMEs.

To actively support the financial needs of SMEs, Hang Seng is offering pre-approved SME Business Loan to about 8,000 existing customers. This streamlined service does not require collateral or financial statements and can facilitate loan disbursement within as few as five days.

Additionally, other SME customers can apply for loans through the Hang Seng business online application platform and receive approval-in-principle results effectively.

In addition to the SME Power Up Fund, Hang Seng actively supports government and regulatory measures to assist SMEs. The Bank has taken steps to offer flexible payment options including partial principal repayment arrangement.

Regina Lee, head of commercial banking of Hang Seng Bank, said, “As Hong Kong’s largest local bank, Hang Seng has a deep-rooted network and rich experience in nurturing SMEs. In the face of the intricate and dynamic business climate, it’s imperative for enterprises to not only adapt to new challenges but also enhance their sustainable practices.

“The SME Power Up Fund is our tangible commitment to SMEs, structured to complement the government’s supportive measures highlighted in the recent Budget. Our goal is to empower SMEs, supporting economic growth across Hong Kong,” Lee added.

At the same time, Hang Seng is engaging in pilot programmes like the Commercial Data Interchange (‘CDI’) and Interbank Account Data Sharing (‘IADS’), allowing for streamlined data sharing among industry peers with customer consent, enhancing the overall banking experience for all.

Hang Seng has also become the first local strategic partner bank to sign a memorandum of understanding with Cyberport and has adopted payment solutions from their startups to foster innovation among SMEs.

MARKETING-INTERACTIVE has reached out to Hang Seng for more information. 

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