Ebury has announced it is using its Australian strategy as a blueprint to enter the non-bank trade finance lending market in Hong Kong.
The firm, which entered the Australian market in 2019, said it is offering Hong Kong SMEs unsecured trade finance as a complementary product for their payables with line sizes of up to US$5 million per client.
Ebury expects strong demand for its trade finance product based on its suitability in meeting the needs of clients in Hong Kong.
“Our experience in other similar markets is that growth in our book accelerates over time,” said Ebury Asia Pacific managing director Rick Roache.
“In Australia, the book has grown more than 300 per cent in 2021 with the majority of our clients using it to finance supply chains into north Asia.”
According to Mr Roache, many SMEs in Hong Kong find it difficult to get capital for their business due to red tape, rigid systems and complex lender demands, particularly businesses with volatile revenue and cash flow.
“Ebury is immediately competitive in the Hong Kong market because the features of our trade finance product make it the best available,” Mr Roache said.
“We offer clients an easy-to-use online platform, complete cost transparency, with absolutely no fees except for the interest charged for credit used. In contrast, competitors often have upfront, draw-down or utilisation fees on top.”
Ebury is currently valued at more than US$1 billion and has FX and trade finance capabilities in more than 130 countries and offices in 20 countries.
The firm first began offering foreign exchange and risk management solutions to Hong Kong SMEs in 2019.
“This Hong Kong trade finance launch is an important part of our regional growth strategy,” said Mr Roache.
“Once this business is established it will serve as a launch pad for Ebury into mainland China.”
