Ping An Digital Bank offers $6.4m trade loans to SMEs

New facilities use alternative credit data with funding available in as fast as one business day.

Ping An Digital Bank is offering new trade finance loans of up to $6.4m (HK$50m) to help small and medium-sized enterprises (SMEs) in Hong Kong manage cash flow and expand overseas.

The bank has launched receivables financing and invoice financing, with credit assessments using alternative data and loan disbursements available in as fast as one business day.

The new facilities provide revolving credit of up to $6.4m (HK$50m) for trading businesses at different stages of the trade cycle.

Receivables financing targets exporters, allowing them to access funds against outstanding sales receivables by submitting commercial invoices and bills of lading.

Invoice financing is designed for importers to cover procurement costs. Approved funds are paid directly to suppliers, whilst repayment terms range from three to six months to help businesses manage upfront expenses.

Both facilities allow customers to manage drawdowns through a single digital platform.

Terry Tam, head of Business Banking at Ping An Digital Bank, said the new products mark a step towards building an integrated trade finance offering for SMEs expanding into overseas markets.

The bank also provides purchase order financing for cross-border e-commerce procurement and a cross-border e-commerce revolving loan to help businesses manage working capital.

Ping An Digital Bank uses real-time operational data, including customs declarations and trade records, to assess businesses’ creditworthiness.

This approach reduces reliance on traditional bank statement reviews and financial statements, allowing the bank to assess trading activity and make lending decisions more efficiently.