Small business lending · Mong Kok

Your company borrows.
You repay.

Multiyield Limited lends to small traders, shop operators and owner-run businesses from Fa Yuen Street in Mong Kok. We are not a bank; we take no deposits and issue no cards.

Almost every small-company loan in this city is supported by a personal guarantee from the director. It is so routine that it is often signed without comment, in the same stack as everything else. It is also the single document that decides what happens to your flat if the business fails, and it deserves five minutes of attention rather than thirty seconds.

What limited liability
stops doing

A limited company exists so that its debts are its own. That protection is real, and it survives right up until a director signs a personal guarantee — at which point, for that particular debt, it is gone.

The company still owes the money. You now owe it as well. If the company cannot pay, the lender is not obliged to wind it up first, or to exhaust the company's assets, or to wait. Under most guarantees it can simply demand the sum from you.

What a personal guarantee actually changes.

Five questions to ask
before you sign one

Ask	Why it decides the outcome
Is my liability capped?	Some guarantees are limited to a stated sum; many are not, and cover everything the company owes now and later. Ask for a figure and ask for it in the document.
Does it cover future borrowing?	An "all monies" guarantee can extend to facilities taken after you signed — including ones agreed by a co-director while you were elsewhere.
Can the lender come straight to me?	Usually yes. Most guarantees do not require the lender to pursue the company first or to realise its assets before demanding payment from you.
How do I get out of it?	Resigning as a director does not usually end a guarantee, and neither does selling your shares. Find out what release actually requires, in writing, before signing.
Is my home involved?	A guarantee is not the same as a charge over property, but a judgment against you personally can reach your assets. If a spouse is asked to sign anything, they should take their own independent advice.

What we lend

Facility 01

Stock and seasonal purchasing

Buying inventory ahead of a season, repaid as it sells rather than on a schedule invented in an office.

Facility 02

Working capital

Rent, wages and suppliers through a defined gap, sized against a quiet month and not a festival week.

Facility 03

Fit-out and equipment

Shopfronts, refrigeration, display and kitchen equipment — expenditure that lands well before it earns anything.

Facility 04

Consolidation, conditionally

Only where the total cost genuinely falls and the earlier facilities close. Otherwise it is one more loan with a better name.

No rate appears on this page. Any figure would be wrong for nearly every business reading it. You will be given the effective annual rate calculated on the basis the Ordinance specifies, the total amount repayable and the full schedule, in writing, before signature — together with a plain statement of what any guarantee covers. The statutory ceiling is an effective rate of 60% per annum: a ceiling, not a target.

Questions

i.Can a small company borrow without a director's guarantee?

Sometimes, where the company has a substantial trading history, assets to secure against, or a bank relationship built over years. For most small owner-run businesses in this city the honest answer is that a guarantee will be requested. The useful goal is therefore not to avoid it but to understand and, where possible, to limit it.

ii.What is an "all monies" guarantee?

One that covers whatever the company owes the lender, including facilities entered into after you signed, rather than the single loan you had in mind. It is common and it is not improper — but it is a materially larger commitment than a guarantee capped at a stated sum, and you should know which one is in front of you.

iii.My co-director wants me to sign for a facility I did not negotiate.

Then read it yourself and take your own advice. A guarantee is a personal obligation and it does not become smaller because somebody else arranged the loan. If you cannot see the underlying facility documents, that is information about the arrangement rather than an inconvenience.

iv.Someone contacted me offering a loan from you.

Treat it as false until you have telephoned the number on this page yourself. We appoint no agents to approach borrowers, and no fee is payable to anybody before a loan is advanced. If money has already been sent, report it to the police and do not send more in an attempt to recover it.

v.What if trade collapses and I cannot pay?

Telephone before the payment is missed rather than after. The options while a facility is current are considerably wider, and a lender told early is managing a problem rather than enforcing a default. If any lender responds to arrears with threats or harassment, that is a matter for the police.

vi.Do you offer investments or returns to the public?

No. Despite the name, this company does not accept money from the public, does not offer any investment, note or scheme, and is not licensed by the Securities and Futures Commission. It lends. Anyone using this company's name to offer you a return should be reported.