BEA unveils new credit evaluation process for SMEs in trade sector

It has teamed up with PAOCCRA and will use the Commercial Data Interchange of HKMA.

The Bank of East Asia is collaborating with PingAn OneConnect Credit Reference Services Agnecy (PAOCCRA) to streamline its credit evaluation process for small and medium enterprises (SMEs) in the trade sector.

BEA and PAOCCRA will use the Commercial Data Interchange (CDI) offered by the Hong Kong Monetary Authority (HKMA), which utilises the applicant’s electronic customs declaration data submitted to the government through Tradelink as alternative data for credit approval. 

With consent from the loan applicant, PAOCCRA will obtain the data from Tradelink, then share it with BEA through CDI. BEA will then use this as one of the factors for the applicant’s credit approval. 

This arrangement is expected to accelerate the process of data collection and streamline the loan evaluation and approval process, BEA said.

New loan product
BEA has also introduced a new trade enterprise loan product under its BEA Enterprise Easy Fund Series. 

BEA is offering trade loans of up to HK$2m, for tenors of up to 24 months, with no collaterals required.

Companies in the trade sector can apply for Enterprise Easy Fund loans without the need of submitting financial statements. The approval process is as quick as three working days, BEA said.

“By utilising alternative data, CDI enables banks to achieve greater precision in risk assessment  and enhance loan approval efficiency, while also playing a crucial role in promoting financial  inclusion by facilitating access to funds for SMEs,” said Kelvin Au, general manager and head of wholesale banking division, BEA.