Documents required for entering the transaction agreement
This is the loan that settlement funds are supported for the transactions in B2B e-business. Buyer purchases goods,
etc. via e-MP and get loan for payment to the seller in electronic promissory notes (credit payment) instead of payment in
paper-form of promissory notes or purchase on credit.
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 sales detail (including tax voucher information) to e-MP.
- ④ The Payment Gateway (KCGF) transmits the sales detail (including tax voucher information) received from e-MP to the Bank.
- ⑤ Upon receipt of the sales detail (including tax voucher information), the Bank approves payment in the Purchase Card.
- ⑥ Upon receipt of the payment in the Purchase Card, seller applies for discount of sales proceeds if necessary.
- ⑦ The Bank books a loan to the buyer as borrower to make payment of discounted sale proceeds and 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.
Required Documents
- - Documents required for entering the transaction agreement
