Suitable for entrepreneurship, which has the potential to yield positive cash flows in a short time. This is a banking product specifically designed to provide funding for the purchase or development of new equipment or assets. The bank offers lower interest rates than other loans by claiming equipment or other assets as collaterals.
Line of credit, overdraft, or straight loan
When an entrepreneur needs credit for expenses to come, this is the way to go. It comes as a mix between a corporate credit card and a bank loan. It provides the entrepreneur with a predefined amount of money that they can draw from as they continue operating. One’s bank or overdraft facility provides them. It is called an overdraft or straight loan, depending on how one draws the credit.
Overdraft is when one draws the credit in large amounts. It comes with a little extra interest rate. A straight loan is when one draws the line of credit at once. It comes with a lower interest rate. In other words, a line of credit allows an entrepreneur to get that extra cash that he or she needs when they have some money in their bank account.
Understanding your needs will let you know which banks to look for. We are well connected in working with local banks such as HSBC Bank, Bank of China, ICBC Hong Kong. This allows us to provide you with the necessary assistance for grant and loan applications, should you require any professional advice.
This is a cost-effective short-term business funding that can do much than a traditional overdraft. It is also referred to as the revolving credit or alternative overdraft funding. Many lenders provide it, and it offers instant access to funds without the involvement of a bank account. It is good for an entrepreneur who wants to deal with temporary cash flow shortfalls. It can be secured or unsecured.
It provides a line of credit with a limit agreed when one applies based on one’s previous income. The facility will only mean a cost to the business when it is used, based on the amount one draws down, and the time one holds it. The advantage is that it can be repaid at any time, and there are no restrictions on how to use it.