news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Today, we will use a specific financing case to explore in depth the challenges that Hong Kong SMEs may encounter in the financing process and their solutions.

Sendashi Consulting assists in Hong Kong financing

Case background: This client is a clothing trade company that has been established for four or five years, with annual sales of approximately US$5 million, and its main market is the United States. However, a special problem faced by the company is that due to personal reasons, the client is not convenient to come forward, and the shares of the Hong Kong company are actually held by his uncle. This relative is over 60 years old and is inconvenient to come to Hong Kong to sign the relevant contract due to physical reasons.

Client’s question: The client wants to know whether the company can still obtain financing in Hong Kong if the company is held on behalf of another person and the nominee is unable to sign the contract in person.

Professional analysis: First of all, we need to make it clear that when issuing loans, Hong Kong banks usually require the borrower to personally sign the contract to ensure the authenticity and security of the loan. In this case, since the nominee cannot come to Hong Kong to sign the contract in person, it is basically impossible to obtain financing from Hong Kong banks. The following are a few key points:

1. Proxy holding issues: When approving loans, banks usually require company shareholders or actual controllers to appear in person. A proxy holding relationship may cause banks to question the true purpose of the loan and repayment ability.
2. Unable to sign the contract in person: The personal appearance of the lender is an important part of the risk assessment involved in bank lending. If the lender cannot even meet, it will be difficult for the bank to approve the loan.