New Album Reflected in Win-Win Growth Index Evaluation for 'Factoring Without Recourse'

[Asia Economy Reporter Kwangho Lee] The Korea Credit Guarantee Fund announced on the 10th that non-recourse factoring will be reflected in the Win-Win Growth Index evaluation starting this year.

The Win-Win Growth Index is an index that evaluates the level of win-win growth between large and small-to-medium enterprises (SMEs) to promote mutual cooperation. It is determined annually by combining 50% of the Fair Trade Commission's fair trade compliance evaluation and 50% of the Win-Win Growth Committee's comprehensive evaluation results.

The Korea Credit Guarantee Fund has been promoting the inclusion of non-recourse factoring, a cash-equivalent payment method, in the Win-Win Growth Index evaluation together with the Fair Trade Commission and the Korea Fair Trade Mediation Agency. Starting this year, when large and medium-sized enterprises use the Fund's factoring to pay SMEs for goods, it will be recognized as a cash-equivalent payment and reflected in the fair trade agreement compliance evaluation.

When using the Fund's non-recourse factoring, selling companies can immediately convert accounts receivable into cash without the risk of default, enabling stable management. Purchasing companies can use factoring as a new cash-equivalent payment method to settle payments for goods without additional financial costs and strengthen win-win cooperation with partner companies.

To expand the base of factoring, the Fund offers selling companies discount rates at the lowest level among financial institutions and provides various benefits such as reducing guarantee fees by up to 0.5%P when purchasing companies use the Fund's guarantees.

A representative of the Fund said, "With the inclusion of non-recourse factoring in the Win-Win Growth Index, the use by large and medium-sized enterprises is expected to increase, and many SMEs are expected to benefit accordingly. Going forward, the Fund will continue to strengthen collaboration with the Fair Trade Commission and the Korea Fair Trade Mediation Agency to actively foster an ecosystem of mutual cooperation between large and small-to-medium enterprises."

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