# Hongkong and Shanghai business loans > Hongkong and Shanghai is on Recur Club's lender panel, writing domestic factoring, loan against securities, overdraft / cash credit and 4 other products. Source: https://www.recurclub.com/lenders/hongkong-and-shanghai Last updated: 2026-09-29 ## Products and indicative terms Observed on live transactions. Not an offer or a quote. | Product | Ticket | Rate | Tenure | |---|---|---|---| | Working Capital Demand Loan | - | - | - | Also offered, with no terms observed yet: Domestic Factoring, Loan Against Securities, Overdraft / Cash Credit, Purchase Invoice Discounting, Sales Invoice Discounting, Secured Term Loan. ## Eligibility ### Will not fund - Won't touch the entire pharma supply chain, businesses linked to components involving mass destruction, or project-linked businesses including EPC and central/state government project exposure - HSBC will not do the deal - they need a minimum equity raise of $5m - Company doesn't fit in the new programme parameters; old programme discontinued - HSBC not willing to go lower on SD% - Won't touch the entire pharma supply chain, businesses linked to components involving mass destruction, or project-linked businesses including EPC and central/state government project exposure (×1 · latest ) - Recently evaluated and passed on: Flip Spaces (architecture), Wicked Good (Orius Ventures), Elminto Foods (raised ₹55cr), and Foxtale (sanctioned ≈₹7-8cr for a $5mn raise but not disbursed) (×1 · latest ) ### Prefers - Keen on Agri companies since they can get guarantees from DFIs - With smaller companies, tries to start with a higher margin/pricing - Ideally prefers being the first banker in, or backing IPO-bound companies - Open to looking at Pune-based companies - Funds NBFCs very rarely, subject to a minimum credit rating check - …more in playbook - Keen on Agri companies since they can get guarantees from DFIs - With smaller companies, tries to start with a higher margin/pricing - Ideally prefers being the first banker in, or backing IPO-bound companies - Open to looking at Pune-based companies - Funds NBFCs very rarely, subject to a minimum credit rating check - Can do performing credit, acquisition financing, cross-border, and real estate deals - Largely sector-agnostic but stronger preference for manufacturing and services businesses, with limited exposure to pure trading entities - Domestic trade-focused businesses not a core priority unless there's scope for structured banking solutions - Trading clients expected to have a genuine import/export linkage, supported by global trade presence in 60+ countries - Preferred sectors: agri & food processing, chemicals, textiles, automobiles & ancillaries - Prefers borrowers to maintain multiple banking relationships - Hard collateral preferred: residential, commercial and industrial property, or debt mutual funds, fixed deposits and charge on current accounts ### Screening gates and observed behaviour - Borrower: CIBIL ≥650 · age ≥2y (bank guarantee, domestic factoring, dropline overdraft, export financing, import factoring, letter of credit, overdraft / cash credit, purchase invoice discounting, sales invoice discounting, vendor financing, working capital demand loan) · age ≥3y (cgtmsme overdraft cash credit, cgtmsme term loan, cgtmsme working capital demand loan) · avoid: Financial Services (varies by product) · Karnataka (varies by product) · Private Limited, Public, Sole proprietorship, Limited Liability Partner (varies by product) - Financials: TOL/adjusted tangible net worth ≤4 · debt/EBITDA ≤3 · debt/networth ≤3 · DSCR ≥1 · maximum networth: 1000 (cgtmsme overdraft cash credit, cgtmsme term loan, cgtmsme working capital demand loan only) · rev ≥₹10cr (cgtmsme overdraft cash credit, cgtmsme term loan, cgtmsme working capital demand loan only) · networth ≥₹1cr (cgtmsme overdraft cash credit, cgtmsme term loan, cgtmsme working capital demand loan only) · maximum annualrevenue: 100 (cgtmsme overdraft cash credit, cgtmsme term loan, cgtmsme working capital demand loan only) - Deal: rate 7–16% (range across products — see matrix) · ticket ₹2–200cr (range across products — see matrix) · tenure 12–180mo (range across products — see matrix) - Security (observed): 1st/pari-passu charge on current assets (100%) · Personal Guarantee Of Promoters / Directors / Property Owner (86%) · FD margin 20–30% (57%) - median ticket ₹10cr - median rate 12% - median turnaround -19710d - Security asked in : 1st/pari-passu charge on current assets (×3), Personal Guarantee Of Promoters/Directors (×3), Escrow Of Cashflows (×2), Fixed Deposit <5% (×2) - Security asked in : 1st/pari-passu charge on current assets (×11), Personal Guarantee Of Promoters/Directors (×6), Movable Fixed Assets/Plant & Machinery - Pari Passu First Charge (×3), FD margin 20–30% (×3) - Security asked in 2026: 1st/pari-passu charge on current assets (×7), Personal Guarantee Of Promoters / Directors / Property Owner (×6), FD margin 20–30% (×4), Movable Fixed Assets/Plant & Machinery - Pari Passu First Charge (×3) - share → in-principle approval (initial interest): ≈0d - in-principle approval → sanction (underwriting): ≈127d ## Sanctioned terms (from 9 real sanction letters) ### Sanctioned amount: median ₹9 cr (₹1.5 cr–₹30.5 cr) · NEW ×4 · RENEWAL ×2 - median ₹9 cr (₹1.5 cr–₹30.5 cr) · NEW ×4 · RENEWAL ×2 ### Typical security: Current Assets ×3, Residential Property ×2, Movable Fixed Assets ×2, Immovable fixed assets ×1, Stock and properties ×1, Plant & Machinery ×1 - Current Assets ×3, Residential Property ×2, Movable Fixed Assets ×2, Immovable fixed assets ×1, Stock and properties ×1, Plant & Machinery ×1 ### Typical covenants: - Periodic reporting / MIS obligation — 67% of letters (e.g. "The Borrower will provide audited financials within 180 days of the end of the financial year.") - Periodic reporting / MIS obligation — 67% of letters (e.g. "The Borrower will provide audited financials within 180 days of the end of the financial year.") ### Term sheet by ticket size: (facilities, largest first) - (facilities, largest first) ## Common questions ### What does Hongkong and Shanghai lend? Hongkong and Shanghai writes domestic factoring, loan against securities, overdraft / cash credit, purchase invoice discounting, sales invoice discounting, secured term loan and 1 further products. ### What are Hongkong and Shanghai's eligibility criteria? The first screen is the bureau: a borrower CIBIL of at least 650. Revenue, leverage and debt-service thresholds apply on top and vary by product. The full credit box for each product is set out on this page. ### Who does Hongkong and Shanghai not fund? Won't touch the entire pharma supply chain, businesses linked to components involving mass destruction, or project-linked businesses including EPC and central/state government project exposure Sector and structure exclusions are listed in full on this page. ### What security does Hongkong and Shanghai ask for? Observed across sanctions: 1st/pari-passu charge on current assets (100%) · Personal Guarantee Of Promoters / Directors / Property Owner (86%) · FD margin 20–30% (57%). ### What documents does Hongkong and Shanghai ask for? Most often audited financials, bank statements, debt schedule / sanction letters, mis, other. Having these ready before the first call is what shortens the turnaround. --- Check which lenders fund a business like yours: https://www.recurclub.com/recur-market All lenders: https://www.recurclub.com/lenders Lender intelligence dossier - screening gates, per-product terms and sanction observations, derived from lender policy documents and observed transactions. Figures are observed from a sample and are not an offer, a commitment, or a statement of Hongkong and Shanghai's current policy.