Summary
This is the loan that settlement funds are supported for the transactions in B2B e-business. Seller requests sale proceeds
via request for collection of bills of exchange (including the bill of exchange drawn on buyer and tax voucher) through e-MP
and buyer gets loan within the pre-agreed limit with the Bank for payment to the seller in cash.
Details of Loan
- Method: Available under the credit facility (Roll-Over)
- Facility: Rolled over within 1 year
- Maturity of Transaction: Up to 180 days
- Tax Benefit: Tax Credit
- - Payment amount which is settled within 60 days from issuing date of tax voucher and up to 10% of the taxable income for the year amount
- - (Payment Amount for the past 30 days - Payment Amount in Promissory Notes)*0.3% + (Payment Amount for the period between past 31 days and 60 days - Payment Amount in Promissory Notes)*0.15%
Transaction Flow Diagram
- ① Upon execution of the contract between buyer and seller, buyer applies for issuance of payment guarantee to Korea Credit Guarantee Fund, who will review the application and send the payment guarantee via electronic system.
- ② Seller delivers goods or services to the buyer as per the contract.
- ③ Upon delivery of goods or services, seller transmits request for collection of sale proceeds to e-MP using the information on tax voucher.
- ④ The tax voucher information received from e-MP and request for collection of sale proceeds are transmitted to the Bank via Payment Gateway (KCGF) for loan drawdown request.
- ⑤ Executed loan amount is credited into the buyer’s account for immediate withdrawal and payment to seller’s account for settlement of purchase costs.
- ⑥ Upon credit to the seller’s account, the Bank transmits settlement detail of purchase cost through the Payment Gateway to e-MP.
- ⑦ The Bank debits buyer’s settlement account for repayment at maturity of the account receivable (maturity of the loan).
Expected Benefit
- - Seller: Safe Collection
- - Buyer: Tax Credit, Incremental Credit Line for Payment Guarantee, Sales Increase
- - Funds are available at a comparatively lower cost as the fund source is government’s support program for SMEs.
Advantages of the Citibank Product
- - Convenient as it is not necessary for customer to make visits to the branches as it can be processed via MP over the internet.
Conditions for Availability and Transaction Terms
- - Buyer company who entered the agreement with the Bank and that transacts with the MP, and can get the KCGF guarantee issued.
Conditions for Availability and Transaction Terms
- - Documents required for entering the transaction agreement
