Jungjingong "Short-term Liquidity Support for SMEs"... Accounts Receivable Factoring Program Now Open

The Small and Medium Business Corporation announced on the 2nd that it has started accepting applications for the 'SME Accounts Receivable Factoring Project,' which supports short-term liquidity supply to strengthen the transaction safety net for small and medium-sized enterprises.

The SME Accounts Receivable Factoring Project by the Corporation is a financial support system that not only provides liquidity support but also prevents the chain bankruptcy caused by the insolvency of purchasing companies spreading to selling companies, as there is no recourse claim against the selling companies.

Small and Medium Business Corporation

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Eligible applicants are small and medium-sized enterprises that have financial statements for the past three years and have had business transactions with the purchasing company for more than one year. The eligible receivables are accounts receivable generated from supplying products, etc., by SMEs, and must be electronic tax invoices issued within 62 days from the application date, amounting to 10 million KRW or more.

The factoring period can be selected by the SME in 15-day increments within 30 to 90 days, considering the payment due date. The discount rate is applied differentially according to the credit rating of the accounts receivable acquired by the Corporation.

This year, the Corporation will support a total of 37.5 billion KRW, with up to 1 billion KRW for selling companies and up to 3 billion KRW for purchasing companies.

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