To cope with the changing business environment, funding in a more flexible way is very important to small business in Hong Kong. But, even with collateral, SME\u2019s applying for credit facilities from banks is easier said than done, largely thanks to complex procedures, application documents and rigorous credit policies, says Felix Chan, Managing Director of Wing Fung Credit Ltd.<\/span><\/p>\n \u201cAs the property market was booming during the past few years, the government brought in policies to cool the property market through stamp duty on property transaction; and the loan-to-value (LTV) ratio on bank lending. <\/span><\/p>\n Consequently, home-owners could not re-mortgage their property for \u2018cash-out\u2019 easily. This gave rise to many finance companies mainly engaged in providing property loans. <\/span><\/p>\n Now, that the economy and property market is deteriorating; our main challenge is to balance between credit risk and return.\u201d<\/span><\/p>\n \u201cUnlike banks, Wing Fung Credit offers more flexible credit facilities to both individuals and SME owners. We don\u2019t only rely on the figures calculated for credit approval, but analyze the whole story behind the application.\u201d<\/span><\/p>\n \u201cWe monitor market conditions to offer attractive pricing and our services are more appreciated particularly by new business owners, as their potential income and cash-flow can\u2019t be easily reflected by figures and documents at the earlier stage of business, so it is not easy for them to obtain venture capital from banks,\u201d Chan says.<\/span><\/p>\nFlexible Approach <\/span><\/h3>\n