Hana Capital Signs Agreement with SGI Seoul Guarantee to Support Funding for Rental and Subscription SMEs

[Asia Economy Reporter Yu Je-hoon] Hana Capital announced on the 8th that it has signed a strategic business agreement with SGI Seoul Guarantee to revitalize the rental and subscription economy and will provide various financial supports.

Through this agreement, both companies will provide factoring services to small and medium-sized enterprises (SMEs) engaged in rental and subscription businesses, supporting them to smoothly procure operating funds without the burden of bad debts from receivables, and will help manufacturing and distribution companies to more easily enter the rental and subscription business.

Factoring is one of the corporate financing methods where financial institutions purchase and securitize a company's accounts receivable to supply funds. SMEs providing rental services can benefit from this factoring finance by reducing the burden caused by the prolonged collection period of receivables.

In particular, Hana Capital has decided to offer a 'non-recourse factoring' service so that rental business operators can secure funds more stably. Through this, it plans to promote coexistence and mutual growth with excellent small and medium-sized rental operators and take the lead in practicing Environmental, Social, and Governance (ESG) management.

Additionally, both companies will introduce specialized guarantee insurance products for discovering and nurturing new rental business operators and will jointly conduct marketing to activate the rental and subscription economy across various industries.

Park Seung-oh, CEO of Hana Capital, stated, "Through this agreement, Hana Capital will promote various projects to ensure that rental and subscription businesses are stably established and expanded not only in the manufacturing and distribution industries but also in various other fields."

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