Hana Bank Launches Special 'Withron Export Finance' to Support Export SMEs Facing COVID-19 Financial Difficulties

[Asia Economy Reporter Haeyoung Kwon] Hana Bank announced on the 7th that it will implement a special sale of 'With Loan Export Finance' to support the liquidity of small and medium-sized enterprises (SMEs) and mid-sized companies in the challenging business environment caused by the novel coronavirus disease (COVID-19), and to encourage exports in the materials, parts, and equipment industries as well as emerging markets.

This With Loan Export Finance is a trade finance product designed to secure liquidity for exporting companies. It consists of ▲pre-shipment financing support for raw material purchases and manufacturing ▲post-shipment financing support products that allow the conversion of accounts receivable from exported goods into cash.

This product was launched last month after Hana Bank signed a special business agreement with the Korea Trade Insurance Corporation, enabling the use of 'Export Credit Guarantee (Pre-shipment)' and 'Export Credit Guarantee (Purchase)'. Hana Bank supports 30% of the guarantee fees each for pre-shipment and purchase guarantees, up to a maximum of 60%, if the company applying for the guarantee designates Hana Bank as the collection account for export proceeds. Additionally, loan interest and foreign exchange fees are further reduced. The Korea Trade Insurance Corporation also offers preferential financial review criteria for applying companies and has strengthened benefits such as increasing the guarantee ratio for export credit guarantees (pre-shipment) and reducing guarantee fees by 20%.

In particular, through With Loan Export Finance, Hana Bank has become the first financial institution to expand the guarantee target, previously limited to domestic direct export companies, to include overseas consignment processing export companies. Exporting companies will be able to use funds not only for trade finance but also as working capital, thereby expanding liquidity.

Cho Jong-hyung, Head of Hana Bank's Foreign Exchange Business Group, stated, "Through active collaboration with the Korea Trade Insurance Corporation, we planned this special sale to timely support the liquidity needed by SMEs and mid-sized companies struggling due to the COVID-19 crisis," adding, "We will continue to do our best to provide practical assistance to activate exports for exporting companies."

This content was produced with the assistance of AI translation services.