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I am stuck in starting a new business in hong kong.

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  1. #1

    Join Date
    Jan 2007
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    Unhappy I am stuck in starting a new business in hong kong.

    I have been in Hong Kong for few months, and I could see that there are plenty opportunity in this city, and I have seen lots of people setting up their companies in here. So, I think that would be a good idea to start a new business in here. However, I don't have enough budget to start a company. When I told some friends of mine my situation, they told me that government would like to provide certain funds to support new company. But, when I asked them, they said the following

    Thank you for your email regarding our loan services.

    In general, only existing corporate customer of HSBC Hong Kong with
    registration in Hong Kong would be eligible for submitting General
    Banking Facility Application. In this connection, to facilitate the
    approval, Directors have to provide Hong Kong residential address proof
    in support of a Personal Guarantee on top of the Business Installment
    Loan/ Business Revolving credit application.

    In addition, please take note that customer has to provide latest 2
    years audited financial reports in order to conduct a credit assessment.
    As a reminder, the acceptance of a loan application is subject to the
    Bank's final approval.
    I feel like I got stuck in opening a new business because I lack of budget.

    Is there any other way to start a new business when I have low budget?

  2. #2

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    Eh? Why do you appear to have written to HSBC if what you want is government funds?


  3. #3

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    Feb 2007
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    Why are you equating HSBC to the government? Seems you may need to do some addition homework... If there is some sort of government financing programme for new businesses you should figure out the criteria and apply correctly if you think you qualify. HSBC's response is a typical letter declining a loan because you do not meet the bank's lending criteria.

    Other options for getting funds include get a day job and save, find a partner who is wiling to put up the cash, borrow from family/friends, find a business loan from a bank that you do qualify for, venture capital investment ( equity or debt), etc.....

    Quote Originally Posted by canucktony:
    I have been in Hong Kong for few months, and I could see that there are plenty opportunity in this city, and I have seen lots of people setting up their companies in here. So, I think that would be a good idea to start a new business in here. However, I don't have enough budget to start a company. When I told some friends of mine my situation, they told me that government would like to provide certain funds to support new company. But, when I asked them, they said the following



    I feel like I got stuck in opening a new business because I lack of budget.

    Is there any other way to start a new business when I have low budget?

  4. #4

    Join Date
    Feb 2007
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    1,561

    As a general aside, a huge percentage of new businesses fail within a couple years. You are going to need to convince whatever entity that you borrow from that you will be able to pay them back regardless of what happens with your company, hence the personal guarantee and other requirements most bank loans will require.


  5. #5

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    Might I suggest before you go out into business yourself, you go work for a small business or two and get some basic experience in managing finances, operating a business, budgeting, planning etc etc. Seems like you're starting something just for the sake of starting something and have no real plan or experience.

    bookblogger and Ian922 like this.

  6. #6

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    Quote Originally Posted by hello_there:
    Why are you equating HSBC to the government? Seems you may need to do some addition homework... If there is some sort of government financing programme for new businesses you should figure out the criteria and apply correctly if you think you qualify. HSBC's response is a typical letter declining a loan because you do not meet the bank's lending criteria.

    Other options for getting funds include get a day job and save, find a partner who is wiling to put up the cash, borrow from family/friends, find a business loan from a bank that you do qualify for, venture capital investment ( equity or debt), etc.....
    I read the government website, and I found the HSBC information.

  7. #7

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    Canucktony

    Have you even started on a business plan yet?


  8. #8

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    May 2010
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    Tony, what's your visa status?

    luckycat and bookblogger like this.

  9. #9

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    >> I read the government website, and I found the HSBC information.

    Those were probably loan guarantee schemes where you apply for a loan and the govt provides certain guarantees. Not easy / trivial to get approved for these if you're a brand new business.


  10. #10

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    What's your idea? What kind of business do you want to do? PM me..


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