Newly registered business securing/beiing approved for line of credit

[xiaoma88]

Hi All,

Trying to figure out what my best options are here.

I have a Hong Kong registered company exporting furniture from China. The company is 3 years old and making a profit this year. We are not starting to deal with bigger customers who require better payment terms. (L/C, 100% after delivery etc.) so we need to find some financing for this situations, like a packing loan, revolving line of credit etc.

The problem is it seems as though our bank (HSBC) won't extend these services unless a principal of the business has significant assets? I have no assets to speak of, so this is a problem! I would have thought that because the financing would be against actual orders (L/C and/or invoice would be available) that it would be easy to secure short-term financing? Has anyone been in this situation before?

Another thought I had was starting a new company and rather than rushing to open a bank account, use the opportunity to negotiate with them and open with a bank who would agree to some short-term financing arrangement. Again, has anyone done this before? Would it be possible even though I have no personal assets? Another concern is some banks only consider lines of credit etc. after you have opened an account for more than one year. Not sure if this is flexible or not!

Any help or advice would be appreciated!

[emx]

Open an account with another bank that will.

Lots of choice here, shop around.