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Techfin ratings is
committed to being a reliable partner
in the financial activities of SMEs.

Techfin ratings is committed to being a
reliable partner
in the financial activities of SMEs

We primarily offer accounts receivable factoring services
that allow the immediate cash conversion of sales proceeds
based solely on the creditworthiness of both the buyer and seller companies.
Additionally, we provide a purchase order-based working capital loan brokerage service (Network Loan)
that supports working capital for product purchases.
In the future, we plan to introduce a variety of financial products
aimed at assisting the financial activities of SMEs.

We primarily offer accounts receivable factoring services
that allow the immediate cash conversion of sales proceeds
based solely on the creditworthiness of both the buyer and seller companies.
Additionally, we provide a purchase order-based working capital loan brokerage service (Network Loan)
that supports working capital for product purchases.
In the future, we plan to introduce a variety of financial products
aimed at assisting the financial activities of SMEs.

We will serve as a bridge
between various financial institutions
to support the smooth financial operations of SMEs

We will serve as a bridge
between various financial institutions
to support the smooth financial operations
of SMEs

stop play

SERVICE

Supply Chain Finance Solutions

Supply Chain
Finance Solutions

  • Convenient Accounts
    Receivable Factoring Service

    Convenient
    Accounts Receivable
    Factoring Service

    • Application
      Qualifications

      Application Qualifications

      Companies that issue electronic
      tax invoices can use factoring.       Companies that issue electronic tax
      invoices can use factoring.

    • Apply when issuing
      a tax invoice

      Apply when issuing a tax invoice

      You can apply with a tax invoice issued
      within about 60 days.       You can apply with a tax invoice issued within
      about 60 days.

    • Secure data
      management

      Secure data management

      It is safe because it evaluates corporate
      credit with the consent of customers.

    • No paperwork

      On the online application form
      It's certified with corporate certificates
      No document submission is required.       On the online application form It's certified
      with corporate certificates No document
      submission is required.

    Case of Using Account Receivable Factoring

    • "By covering the sales payments, we had more flexibility with our cash flow, which let us reinvest in the business.”

      The Story of the Director of Meat Processing Manufacturing Plant

      The director of the meat processing manufacturing plant has poor liquidity in funds, making it difficult to expand the business quickly.
      This problem occurred because we had to wait for a long time for payment after issuing the tax invoice.

      In response to these difficulties, by introducing the account receivable factoring service, the chairman was able to immediately secure cash as soon as he obtained the customer's consent based on the tax invoice he sold.

      With the ability to quickly raise money online without complicated paperwork, this service enables immediate cash on sale, enabling immediate response to salaries, raw material purchases, and other operating expenses. In addition, cash flow has improved to allow companies to freely manage the funds needed to reinvest and expand their businesses, and to increase their credibility without having to rely on loans from financial institutions.

      By managing the debt collection process, the company was able to reduce the effort and cost of collecting the bonds. As a result, the chairman was able to secure funds without financial burden and maximize the efficiency of his business through the account receivable factoring service.       More details
    • "Since you helped cover the payments for our purchases, we now have some extra cash, which has really lightened the load for the business."

      The story of the president of a large mart

      The accounts receivable factoring service has provided a great help to buyers, especially small and medium-sized businesses like ours, where money flow management is important.

      Longer payment periods can negatively impact production plans and operational efficiency, and our accounts receivable factoring service allows us to guarantee immediate payment to the seller while repaying the actual funds to the factoring company for an agreed long period of time.

      As a result, our company was able to manage cash flow efficiently, and the burden on operating capital was reduced by acquiring necessary goods or raw materials without the initial financial burden.

      In addition, factoring establishes buyers' position as reliable partners in transactions with suppliers, which has contributed to strengthening long-term business relationships with sellers who supply products without worrying about payment delays.

      As a result, account receivable factoring was used to reduce the burden of settlement and to maximize the efficiency of business operations by securing the necessary resources and raw materials in a timely manner..       More details

    Account Receivables Factoring Process

    Account Receivables
    Factoring Process

    Affiliated Companies

    • Factor
    • Target
    • a tax-free invoice Issuing company (Vendor company of direct exporting company)
    • The sales company Available for small and medium-sized enterprises
    • Factoring for General Enterprise
    • For individuals / corporate business owners Factoring provided Limited to 40% of previous year's sales
    • partners who do business with Lotte affiliates Provides factoring to specialized corporate business entities

    Video Clips For Accounts Receivable Factoring

    Video Clips For
    Accounts Receivable
    Factoring

    Contact Us

  • Korea SMEs and Startups Agency ‘s Account Receivable Factoring program is a service provided
    to improve the liquidity of funds for SMEs. This service helps small and medium-sized businesses use their accounts
    receivable as collateral to secure the funds they need early.
    It can be a useful alternative when it is difficult for small businesses to get loans from financial institutions.

    Korea SMEs and Startups Agency ‘s Account Receivable Factoring program is a service provided to improve the liquidity of funds for SMEs. This service helps small and medium-sized businesses use their accounts receivable as collateral to secure the funds they need early. It can be a useful alternative when it is difficult for small businesses to get loans from financial institutions.

    Key Features

    TARGET A sales company that falls under the support target
    determined by the Small and Medium Business
    Administration    		 SYSTEM The company acquires the accounts receivable of the sales company without the right to demand payment, provides funds, and collects the accounts receivable from the purchasing company.
    PERIOD 30 to 90 days (in 15-day increments)
    Selected by the sales company    		 LIMIT 10 million to 1 billion won per contract
    ACCOUNT Sales company : Use of corporate account
    Purchasing company : Use virtual account    		 REPAYMENT
    METHOD    		 Early repayment possible
    INTEREST
    RATE    		 In consideration of credit risk rating (buying
    company), factoring period, etc
    Determination of interest rate, around 4% per year    		 ADDITIONAL
    FEE    		 NON
    BUDGET January 31, 2024 ~ Until the budget is exhausted (Budget size : 37.5 billion won)
    Purchasing companies : 1 billion won, annual support limit : 3 billion won
    Sales companies : 1 billion won
    TARGETED
    BONDS    		 Accounts receivable arising from the provision of goods and services by small and medium-sized enterprises*
    * Electronic (tax) invoices of 10 million won or more prepared and sent to the National Tax Service within 62 days from the application date
    * Accounts receivable arising from transactions between companies with the same representative are excluded from support
    LINKING
    ACCOUNTING
    INFORMATION    		 Accounting information of 24 months or more for accounting big data analysis
    * Linkage <Required for both sales company and purchasing company>
    * Accounting information : Linkage of accounting program data used by the company Purchase company approval required after application registration by the sales company
    (required prior consultation between the two companies)
    * However, if the purchasing company is a large or medium-sized company, or a company listed on the stock market, KOSDAQ, or KONEX,
    the purchasing company may be exempted from accounting information linkage
    TARGET A sales company that falls under the support target determined by the Small and Medium Business Administration
    SYSTEM The company acquires the accounts receivable of the sales company without the right to demand payment, provides funds, and collects the accounts receivable from the purchasing company.
    PERIOD 30 to 90 days (in 15-day increments) Selected by the sales company
    LIMIT 10 million to 1 billion won per contract
    ACCOUNT Sales company : Use of corporate account
    Purchasing company : Use virtual account
    REPAYMENT
    METHOD    		 Early repayment possible
    INTEREST
    RATE    		 In consideration of credit risk rating (buying company), factoring period, etc
    Determination of interest rate, around 4% per year
    ADDITIONAL
    FEE    		 NON
    BUDGET January 31, 2024 ~ Until the budget is exhausted (Budget size : 37.5 billion won)

    Purchasing companies : 1 billion won, annual support limit : 3 billion won

    Sales companies : 1 billion won
    TARGETED
    BONDS    		 Accounts receivable arising from the provision of goods and services by small and medium-sized enterprises*

    * Electronic (tax) invoices of 10 million won or more prepared and sent to the National Tax Service within 62 days from the application date

    * Accounts receivable arising from transactions between companies with the same representative are excluded from support
    LINKING
    ACCOUNTING
    INFORMATION    		 Accounting information of 24 months or more for accounting big data analysis
    * Linkage <Required for both sales company and purchasing company>

    * Accounting information : Linkage of accounting program data used by the company Purchase company approval required after application registration by the sales company (required prior consultation between the two companies)

    * However, if the purchasing company is a large or medium-sized company, or a company listed on the stock market, KOSDAQ, or KONEX, the purchasing company may be exempted from accounting information linkage

    Case of Using Account Receivable Factoring

    • “We were able to improve cash flow by converting accounts receivable into cash, and focus on our business by reducing costs.”

      Number One Co., Ltd. COMPUTER PERIPHERALS, SOFTWARE WHOLESALE

      Our company mainly deals with the wholesale of computers, peripherals, and software. Recently, we supplied a large quantity of computers and peripherals to our major client, Digital Store Co., Ltd. However, due to the nature of our company, we had to wait 60 days to receive payment from Digital Store Co., Ltd.

      In this situation, our company used the accounts receivable factoring service of the SME Promotion Agency. Thanks to this service, our company was able to quickly convert accounts receivable from transactions with Digital Store Co., Ltd. into cash by selling them to SMBA.

      Thanks to this service, we were able to quickly convert accounts receivable into cash without having to wait for long periods of time for payment, and secure the necessary funds.Thanks to this service, our company received several benefits. First, we secured funds early by reducing the payment collection period through accounts receivable factoring, which improved our cash flow. Thanks to this, we were able to run our business smoothly without financial pressure. Also, since Jungjin Gong purchased accounts receivable and gave us a credit rating, we were able to manage our risk, which helped us reduce our anxiety about collecting our accounts receivable.

      In addition, since we raised funds through accounts receivable factoring, it cost less than other financial products, and we were able to reduce our financial costs. Lastly, we were able to save time and effort by easily applying remotely through the digital supply chain factoring platform.

      With these benefits, our company was able to secure cash flow and continue management smoothly, manage credit risk, and reduce costs, allowing us to focus on our business.       More details
    • “We are making smooth purchases with stable and reliable funds through KOSME’s Factoring.”

      Digital Store Co., Ltd. E-commerce Retail

      Our company is an e-commerce retail brokerage company that also operates retail stores. Our company purchases computers and peripherals from our main supplier, Number One Co., Ltd., and sells them. However, in the past, due to delayed payment for products, our company also had difficulties in managing funds.

      However, through the Small and Medium Business Administration’s accounts receivable factoring service, Number One Co., Ltd. converted accounts receivable to cash, making transactions with our company much smoother. Thanks to this service, Number One Co., Ltd. was able to secure funds quickly, and our company was able to receive a stable supply of products.

      Securing a stable supply chain : Thanks to the accounts receivable factoring service, Number One Co., Ltd. secured liquidity, and thanks to that, our company was able to receive products stably. This reduced uncertainty in the supply chain, and the purchasing process became more stable.

      Thanks to accounts receivable factoring, trust with suppliers was strengthened. Because Number One was able to secure funds quickly, our company was able to worry less about delays or disruptions in product supply.

      With Number One securing cash liquidity through accounts receivable factoring, our company was also able to establish flexible funding plans with suppliers. Thanks to this, we were able to secure the products we needed when we needed them.

      This service made transactions with suppliers more efficient and transparent, allowing our company to proceed with the purchasing process more smoothly.       More details

    Application Process

    • 1

      Join Us

      Sign up for KOSME
      Submissioin of 3 year
      financial statement

      SELLER

      BUYER

    • 2

      Accounting Data Integration

      Membership registration,
      accounting information
      (2 years)

      SELLER

      BUYER

    • 3

      Factoring application

      Issuance of tax invoice,
      application and consent
      for factoring

      SELLER

      BUYER

    • 4

      Factoring Review

      application
      completed

      FACTOR

    • 5

      Payment

      Deposit of the
      seller's account
      (excluding interest)

      SELLER

    • 6

      Repayment

      Repayment of
      principal of accounts
      receivable

      BUYER

    • KOSME Web site
      www.kosmes.or.kr

    • 1

      Join Us

      Sign up for KOSME Submissioin of 3 year financial statement

      SELLER

      BUYER

      • Factoring Platform
        kosmes.wehago.com

      • 2

        Accounting Data Integration

        Membership registration,
        accounting information (2 years)

        SELLER

        BUYER

      • 3

        Factoring application

        Issuance of tax invoice,
        application and consent for factoring

        SELLER

        BUYER

      • 4

        Factoring Review

        application completed

        FACTOR

      • 5

        Payment

        Deposit of the seller's account
        (excluding interest)

        SELLER

      • 6

        Repayment

        Repayment of principal of accounts receivable

        BUYER

    Contact Us

  • The supply chain factoring service provided by the Export-Import Bank of Korea
    is a financial support service to increase the liquidity of export companies.
    It plays a role in purchasing accounts receivable held by indirect export companies and providing funds early.
    The Export-Import Bank of Korea provides the funds necessary for export companies to operate stably and promote exports.

    Terms of Use

    • Target

      Buyer(recipient) : Small-scale
      purchaseA company holding a tax
      invoice, above the scale of external
      AuditSeller(supplier) : An indirect
      export company company issuing small-
      scale tax invoices       Buyer(recipient) : Small-scale purchaseA company
      holding a tax invoice, above the scale of external
      AuditSeller(supplier) : An indirect export company
      company issuing small-scale tax invoices

    • Amount available
      for support

      Amount available for support

      Small business rate trade receivables X
      100% Required amount within However,
      available within the limit agreed upon
      with the Korea Export-Import Bank       Small business rate trade receivables X
      100% Required amount within However,
      available within the limit agreed upon with
      the Korea Export-Import Bank

    • Period

      Within 60 days after
      delivery of export goods       Within 60 days after delivery of
      export goods

    • Repayment method

      Lump sum or
      installment repayment

    Case of Using Supply Chain Factoring

    • “Supply chain factoring allowed us to immediately cash out our small business tax invoices and grow our business further.”

      Korea Engineering Co., Ltd. A small and medium-sized enterprise in the machinery manufacturing industry

      Our company manufactures special-purpose machinery based on advanced technology and is recognized in domestic and international markets. Our company cooperates with Precision Machinery Co., Ltd. through indirect export transactions, and Precision Machinery Co., Ltd. wholesales these machines to overseas markets.

      Our company used the accounts receivable factoring service of the Korea Export-Import Bank to secure the funds necessary for production and delivery.Through this service, our company was able to transfer accounts receivable from Precision Machinery Co., Ltd. to the bank and receive funds immediately.

      Through accounts receivable factoring, our company was able to secure funds immediately without waiting for the payment collection period. These funds were immediately reinvested in additional production and technology development, enabling us to expand our business.

      While maintaining existing operating funds, we were able to secure liquidity to respond to new orders, thereby enhancing our competitiveness. Accounts Receivable Factoring has enabled our company to minimize its financial risk by transferring credit risk to the bank.

      The rapid financing has enabled our company to establish a foundation for further expansion into global markets.       More details
    • “Our company was able to respond quickly to market demand and expand overseas with the funds secured through factoring.”

      Precision Machinery Co., Ltd. Special Machinery Export Wholesale and RetailOur company is growing rapidly by wholesale high-quality machinery and equipment to various domestic and international markets

      Our company is engaged in export transactions where we receive special purpose machinery from Korea Engineering Co., Ltd. and sell it to overseas markets.

      By expanding into overseas markets through exports, our company has been able to manage the payment for the machinery supplied by Korea Engineering Co., Ltd. more flexibly. By utilizing Korea Engineering Co., Ltd.’s accounts receivable factoring service, our company can manage cash flow more efficiently without having to complete payment immediately.

      By immediately procuring funds through Korea Engineering Co., Ltd.’s accounts receivable factoring, our company can manage inventory without the pressure of payment and use the funds for other operating expenses or investments.

      As suppliers secure funds quickly through accounts receivable factoring, our company can respond more quickly to market demand by minimizing the time between orders and delivery.

      The stable cash flow that Korea Engineering Co., Ltd. has gained by using factoring services ensures supply continuity, which in turn provides a foundation for our company to maintain a more stable supply chain.

      Based on the stable cash flow, our company can actively pursue overseas market expansion and invest more freely in capital needed for new market development and marketing activities.       More details

    Application Process

    • 1

      Factoring
      consultation

      Signing a contract with
      THE EXPORT IMPORT
      BANK OF KOREA

      BUYER

    • 2

      Join Us

      Membership
      registration

      SELLER

      BUYER

    • 3

      Factoring
      application

      Issuance of Tax-free
      invoice, application and
      consent for factoring

      SELLER

      BUYER

    • 4

      Factoring
      Review

      application
      completed

      FACTOR

    • 5

      Payment

      Deposit to
      seller's account
      (excluding interest)

      SELLER

    • 6

      Repayment

      Repayment of
      principal of accounts
      receivable

      BUYER

    • THE EXPORT IMPORT BANK OF KOREA
      www.koreaexim.go.kr

    • 1

      Factoring consultation

      Signing a contract with THE EXPORT
      IMPORT BANK OF KOREA

      BUYER

      • Factoring Platform
        www.wehago.com

      • 2

        Join Us

        Membership registration

        SELLER

        BUYER

      • 3

        Factoring application

        Issuance of Tax-free invoice, application
        and consent for factoring

        SELLER

        BUYER

      • 4

        Factoring Review

        application completed

        FACTOR

      • 5

        Payment

        Deposit to seller's account
        (excluding interest)

        SELLER

      • 6

        Repayment

        Repayment of principal of accounts
        receivable

        BUYER

    Accounts Receivable Factoring Service Process

    Accounts Receivable
    Factoring Service
    Process

    Contact Us

  • Shinhan Digital Credit Guarantee Factoring (Seoul Guarantee Insurance) is a service that helps companies improve their
    financial liquidity without the right to claim reimbursement.
    This service is available if Seoul Guarantee Insurance's purchasing company warranty is approved through the platform.
    Therefore, Shinhan Bank offers the service at a low discount fee without additional screening.

    Key Features

    LIMIT 100% of the amount of trade receivables REPAYMENT METHOD Full repayment on maturity date
    TARGET
    Target sales and purchasing corporations Companies with accounting data for the past 24 months Transactions with purchasing companies for more than 1 year, with more than 3 transaction records
    INSURANCE Method : The sales/purchase company joins the platform and goes through the Seoul Guarantee Insurance guarantee approval process.
    Payment : After final approval, the sales company receives the factoring fee from Shinhan Bank, and pays the insurance premium through account transfer from the paid amount.
    PERIOD Application can be made within 15 days with a tax invoice,
    and the selling company can choose between 60 days or 90 days through consultation with the purchasing company.
    LIMIT 100% of the amount of trade receivables
    REPAYMENT
    METHOD    		 Full repayment on maturity date
    TARGET Target sales and purchasing corporationsT
    Companies with accounting data for the past 24 monthsT
    Transactions with purchasing companies for more than 1 year, with more than 3 transaction records
    INSURANCE Method: The sales/purchase company joins the platform and goes through the Seoul Guarantee Insurance guarantee approval process.
    Payment: After final approval, the sales company receives the factoring fee from Shinhan Bank, and pays the insurance premium through account transfer from the paid amount.
    PERIOD Application can be made within 15 days with a tax invoice,
    and the selling company can choose between 60 days or 90 days through consultation with the purchasing company.

    Accounts Receivable Factoring Service Process

    Accounts Receivable
    Factoring Service
    Process

    Case of Using Digital Credit Guarantee Factoring

    • “We had difficulty managing our finances due to delayed payments, but the situation has greatly improved with the introduction of Shinhan Digital Credit Guarantee Factoring (Seoul Guarantee Insurance) service.”

      Yeongwon Enterprise A small and medium-sized enterprise manufacturing ship components

      Our company manufactures ship components, and we mainly supply parts to Geobuk Shipbuilding. This may sound easy, but in reality, it takes 30 to 90 days to collect trade receivables. Because of this, liquidity problems often occurred, which hindered production activities.

      That’s why we decided to use a factoring service. After supplying parts to Geobuk Shipbuilding and issuing tax invoices, we applied for factoring through the Shinhan Digital Credit Guarantee Factoring (Seoul Guarantee Insurance) platform with the trade receivables. Then, after Seoul Guarantee Insurance receives guarantee approval and our company gives final approval, Shinhan Bank deposits the factoring fee into our account. After receiving the payment, the insurance premium is paid from our account.

      This way, we can immediately convert our accounts receivable into cash, so we can use the funds right away when we need them. In addition, since Shinhan Bank buys our accounts receivable, we can avoid credit risk. In this way, our cash turnover rate has improved, our financial status has been strengthened, and we can manage our funds more efficiently.

      Thanks to this factoring system, our company, Youngwon Enterprise, has found financial stability and can invest the resources necessary to further expand and develop our business. Also, in our dealings with Geobukjoseon, we can maintain a relationship based on trust without any delays in payment, which is really great.       More details
    • “Due to liquidity constraints, we had difficulties in supplying parts smoothly, but we were able to receive stable supply through factoring.”

      Geobuk Shipbuilding Shipbuilding Small and Medium Enterprise

      Our company is a small and medium enterprise that mainly builds ships. We need various parts to build ships, and these projects require quite a lot of capital. So liquidity management is really important to us.

      To meet this need, we are using Shinhan Digital Credit Guarantee Factoring (Seoul Guarantee Insurance) service. Through this service, we are trying to increase liquidity and strengthen our payment capacity.

      The process is as follows. First, we request the necessary ship parts from parts suppliers such as Yeongwon Enterprise. After receiving the parts, we receive the tax invoice sent by the supplier and proceed with the agreement on the transfer of accounts receivable. Next, we consult with Shinhan Bank to decide on the payment and repayment schedule for the factoring fee. Seoul Guarantee Insurance approves the guarantee. Finally, we directly repay the accounts receivable to Shinhan Bank on the agreed date.

      Thanks to this factoring service, we are able to manage and improve our credit. In addition, the prepayment system allows you to immediately fulfill your payment obligations to suppliers, allowing you to manage your funds efficiently without disrupting the project schedule. You can also reduce your financial burden by flexibly utilizing the necessary funds through payment deferral, and it also makes it easier to secure emergency funds in case of uncertain market conditions or unexpected expenses.       More details

    Application Process

    • 1

      Join Us

      Accounting Data verification

      SELLER

      BUYER

    • 2

      Factoring application

      Membership registration

      SELLER

      BUYER

    • 3

      Factoring Review

      application completed

      SGI

    • 4

      Notice of assignment of bonds

      Notification of assignment of claims to purchasing company

      FACTOR

    • 5

      Payment

      Deposit to the seller's account (excluding interest)

      SELLER

    • 6

      Repayment

      Repayment of principal of accounts receivable

      BUYER

    Contact Us

  • Network Loan Benefits

    Network Loan
    Benefits

    • Ordering company

      Ordering company can maintain a stable supply chain
      by dealing with reliable SMEs partners and grow
      together by increasing productivity.       Ordering company can maintain a stable supply chain by dealing with reliable SMEs partners and grow together by increasing productivity.

    • Order-taking company

      Get easy and fast access to funds using the purchase
      order as collateral and have the opportunity to invest
      in their business again.       Get easy and fast access to funds using the purchase order as collateral and have the opportunity to invest in their business again.

    • Deferral of
      Payment

      Delaying payment of service charges
      through loans effectively manage the
      operation of funds

      Deferral of Payment

      Delaying payment of service charges through
      loans effectively manage the operation of funds

    • Strengthen long-
      term relationships

      Show trust to your business partners
      helps build long-term relationships

      Strengthen long-term relationships

      Show trust to your business partners helps
      build long-term relationships

    • Reduce credit
      risk

      Receiving funds from financial
      institutions reduce the risk of delayed
      payment by ordering companies

      Reduce credit risk

      Receiving funds from financial institutions reduce
      the risk of delayed payment by ordering companies

    • Early securing of
      production funds

      By borrowing the amount to be paid to
      the ordering company earlyImproving
      cash flow

      Early securing of production funds

      By borrowing the amount to be paid to the
      ordering company earlyImproving cash flow

    Service Description

    PURPOSE Promoting shared growth of large and small enterprises
    and stabilizing supply chains for small and medium
    enterprises    		 BUDGET 100 billion won
    ACCEPTANCE PERIOD April 2, 2024 ~ until funds are exhausted REQUIREMENT Basis for delivery order
    (supply contract, purchase order, purchase approval, etc.)
    LOAN PERIOD Within 1 year TARGET Small and medium-sized enterprises recommended
    by ordering companies that have signed an
    agreement with Jungjin Construction
    INTEREST Around 4% per annum (taking into account the burden of the ordering company, corporate credit rating, and loan period, etc.)
    LOAN AMOUNT
    Within 80% of the order amount Annual support limit for ordering company : KRW 10 billion Annual support limit for ordering company : KRW 1.5 billion
    PURPOSE Promoting shared growth of large and small enterprises and stabilizing supply chains for small and medium enterprises
    BUDGET 100 billion won
    ACCEPTANCE
    PERIOD    		 April 2, 2024 ~ until funds are exhausted
    REQUIREMENT Basis for delivery order
    (supply contract, purchase order, purchase approval, etc.)
    LOAN PERIOD Within 1 year
    TARGET Small and medium-sized enterprises recommended by ordering companies that have signed an agreement with Jungjin Construction
    INTEREST Around 4% per annum (taking into account the burden of the ordering company, corporate credit rating, and loan period, etc.)
    LOAN
    AMOUNT
    Within 80% of the order amount
    Annual support limit for ordering company : KRW 10 billion
    Annual support limit for ordering company : KRW 1.5 billion

    Case of Using Network Loan

    Case of Using Network
    Loan

    • “Our company quickly secured funds through network loans, thereby increasing productivity and expanding our business.”

      Shinseong Co., Ltd. (SME manufacturing auto parts)

      Our company Shinseong is an SME manufacturing auto parts company that recently received a large order from the large company Taeyang Co., Ltd. Since we deal with a lot of business with the large company Taeyang Co., Ltd., rapid turnover of funds is very important to us.

      To meet this need, we used the network loan of the Small and Medium Business Administration based on the purchase order from the large company Taeyang Co., Ltd. Through this program, we were able to quickly borrow 80% of the purchase order amount as short-term production funds and use it as emergency operating funds to purchase materials necessary for product production.

      Thanks to this loan, we were able to deliver the ordered products on time. In addition, by transferring the receivables to the Small and Medium Business Administration after completing the delivery, we transferred the loan repayment obligation to Taeyang Co., Ltd.

      Thanks to the network loan program, Shinseong was able to greatly reduce its financial burden and secure the necessary funds in a timely manner, which greatly helped us expand our business and maintain a stable supply chain. Moreover, even if there was a risk of insolvency of the ordering company, Taeyang Co., Ltd., we were able to operate our business with greater peace of mind because we were protected from repayment risk through the Small and Medium Business Administration.       More details
    • “Our company has reduced supply delays and maintained market competitiveness through network loans.”

      Daemyung Co., Ltd. (Medium-sized electronics manufacturing company)

      As a leading company in the manufacture of advanced electronics, our company works with many reliable SME partners. However, due to changing market conditions and increasing production demands, it has become imperative for us to maintain a stable supply chain.

      To address this, we utilized the Network Loan program of the Small and Medium Business Administration to support our partner SMEs in quickly securing the necessary production funds. This was done using our purchase orders as collateral, and through this, our partner companies were able to secure funds smoothly and deliver products to us on time.

      With these measures, we were able to significantly reduce the risk of product supply delays and successfully launch our products to the market as planned, maintaining competitiveness. The funding support through the Network Loan program has greatly contributed to strengthening trust between us and our SME partners and establishing long-term cooperative relationships.       More details

    Network Loan Service Process

    • 1

      Signing of agreement and recommendation of contracting company

      Signing of agreement for supporting cooperative SMEs with excellent SMEs wishing to participate in the SME Network Loan
      → Recommendation of excellent SMEs       Signing of agreement for supporting cooperative SMEs with excellent SMEs wishing to participate in the SME Network Loan → Recommendation of excellent SMEs

    • 2

      Order

      Execusion of supply contracts between ordering companies (transmission of order form)

    • 3

      Network loan application

      After applying for policy funds, the selling company will have its loan eligibility determined through a review by KOSME

    • 4

      Loan execution

      Payment of network loan

    • 5

      Delivery

      Execution of supply contract by ordering company (confirmation of accounts receivable), contract for assignment of receivables

    • 6

      Payment of delivery price (repayment of loan)

      After execution of delivery contract, ordering company pays delivery price to SME Corporation (repayment of loan)
      *If delivery contract is not executed, ordering company repays loan

    Application Process

    • 1

      Agreement signed
      & recommendation

      BUYER

    • 2

      Apply for a loan

      SELLER

    • 3

      Loan Agreement

      BUYER

    • 4

      Payment

      KOSMES

    • 5

      Delivery/Issue of Tax Invoice → Assignment of Claims

      SELLER

    • 6

      Repayment

      BUYER

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