New credit scoring techniques have paved the way for unsecured lending in the small- and medium-sized business (SME) sector, which has recorded 23 per cent growth as a result, HSBC says.
“By using credit scoring we have been able to increase our assets in a so-far untapped customer base,” said Margaret Leung, HSBC’s assistant general manager and global co-head of commercial banking,.
Property is no longer required as collateral in cases where loan applicants achieve an adequate score and HSBC has also moved to a system of account receivable financing, or factoring, which does not require physical collateral to secure loans.
