Where to get funding for your SME in Hong Kong?

A wide range of financing options empower SMEs to innovate, expand, and stay competitive in both local and global markets.

Hong Kong is home to around 357,000 small and medium-sized enterprises (SMEs), according to the Trade and Industry Department, making up 98.5% of all businesses and providing nearly 43% of private sector jobs. From retail shops and restaurants to fintech startups and manufacturers, SMEs play a critical role in driving innovation, generating employment, and contributing to the city’s GDP. 

To survive, compete, and thrive in such a dynamic environment, it’s essential for SMEs to access timely and appropriate funding.

Why is funding important for SMEs?

SME funding provides financial support to help manage operations, drive growth, and build resilience. This support can take many forms, including government grants, bank and personal loans, private investment, or alternative financing options like crowdfunding.

Other than easing financial burdens such as covering rising operational costs and handling delayed payments, adequate funding also helps you enter new markets, including Mainland China and economies with Free Trade Agreements with Hong Kong. Besides, you can invest in research, technology development, and business transformation, staying ahead of industry trends and boosting competitiveness.

Government Grants and Loan Guarantees for SMEs in Hong Kong

The government offers 74 funding schemes to support local businesses, which can be searched according to industry type and business needs. These schemes are generally non-repayable or come with government-backed loan guarantees to reduce risk for lenders.

Examples of popular funding schemes include: SME Export Marketing Fund (HK$1m), which Helps SMEs expand into overseas markets; BUD Fund (HK$7m),which supports branding, upgrading, and expansion in FTA/IPPA markets; Enterprise Support Scheme (HK$10m), which encourages in-house R&D; and Arts Capacity Development Funding Scheme (HK$5.5m), which supports cultural and creative sectors.

To help you identify and apply for the best-fit funding schemes, SME ReachOut, a government support service, provides one-on-one consultations with special focus on areas like ESG and digitalisation.

Best for: Established SMEs with a clear business plan about their funding needs.

How to apply: Check eligibility on official portals (TID, Cyberport, ITC). Then, prepare the required documents (registration, financials, and project plans) and submit your application online. Applications generally take 4 to 12 weeks to process.

Bank loans and personal loans for SMEs in Hong Kong

Major banks like HSBC, Standard Chartered, and DBS offer a range of SME lending products. For startups or small businesses, personal loans can be a convenient solution for quick funds.

SME bank loans in Hong Kong are supported by several targeted schemes and mechanisms, including the following:

SME Financing Guarantee Scheme: Backed by the HKMC Insurance Limited, this scheme improves loan access through 80%, 90%, or 100% government guarantees, depending on the product.

SME Lending Coordination Mechanism: Coordinated by the HKMA, this platform encourages banks to offer support like loan tenor extensions and payment holidays.

Personal Loans: These are suitable for new or small-scale SMEs that need quick funds. Approval is typically faster, though interest rates can be higher.

Best for: Established SMEs needing working capital

How to apply: Visit a bank or apply online with business registration, financial records, credit history, and owner details. Approval may take as little as 3 working days.

Venture capital and angel investment for SMEs in Hong Kong

Equity investment is a common funding route for tech startups and fast-growing businesses, where investors provide capital in exchange for ownership shares, aiming to benefit from future growth and returns.

Venture Capital (VC) typically refers to larger funds targeting scalable innovations in technology, biotech, or green tech.

Key sources in Hong Kong include: Innovation and Technology Venture Fund (ITVF), which co-invests with VCs in local startups; HKSTP and Cyberport, which offers their own funds and incubation programmes; Venture Capitalist Networks, where Venture Investors Alliance of Hong Kong and other networks connects you with local and international venture capital firms; and  Corporate VC arms backed by large enterprises that invest in startups.

Angel investment, on the other hand, are usually made by high-net-worth individuals. They invest smaller sums, around HK$100,000 to HK$400,000, at the seed stage. Organisations like the Hong Kong Business Angel Network help connect investors and startups.

Best for: Tech startups and businesses targeting regional or global expansion

How to apply: First, prepare a business plan and pitch deck. Apply via incubators or pitch directly to VCs or angel investors. You can also participate in startup competitions and networking events.

Crowdfunding and peer-to-peer (P2P) lending for SMEs in Hong Kong

Alternative funding platforms allow SMEs to raise capital directly from the public or individual investors, often with lower barriers and greater flexibility. Be aware of activities like P2P lending, as they may fall under financial regulations.

Crowdfunding platforms help businesses raise money by collecting small contributions from a large number of backers.

Reward-based platforms: Kickstarter and Indiegogo are ideal for product-based businesses, particularly with physical prototypes. 

Equity crowdfunding platforms: AngelHub and other similar platforms allow SMEs to raise funds in exchange for shares, without taking on debt.

Alternatively, P2P lending platforms like WeLend and GoCredit connect borrowers directly with private lenders. Loan amounts and interest rates vary depending on the borrower’s credit profile and business history.

In Hong Kong, equity and debt crowdfunding may be regulated under the Securities and Futures Ordinance (SFO), whilst P2P platforms may require a moneylender's licence. The SFC may also limit access to professional investors for higher-risk lending models

Best for: Consumer-facing brands and startups with strong online communities

How to apply: Choose the right platform and create a compelling campaign with video, product demos, and regular updates. Promote on social media and engage with early backers. For P2P loans, submit financial details and agree to the platform’s terms.