Korea Capital Goods Mutual Aid Association and Shinhan Bank link sales bond credit system with payment platform
Companies in the machinery and plant equipment sector often struggle to manage cash flow between winning a contract and receiving payment for delivery. A new financial agreement linking sales bond credit with a bank payment platform aims to bridge that gap.
The Korea Capital Goods Mutual Aid Association recently signed a "Capital Goods Industry Co-prosperity Financial Support MOU" with Shinhan Bank.
The agreement provides tailored financial support to capital goods firms that face difficulty securing funds for manufacturing after winning orders. It also covers support for stable business operations and overseas expansion.
The association's sales bond credit system will be linked with Shinhan Bank's payment platform to support manufacturing and production financing for member companies, including machinery firms. Members will be able to secure the funds they need between winning an order and receiving payment. Once payment arrives, the loan is automatically repaid under terms set in advance. Shinhan Bank also plans to offer preferential interest rates to eligible companies, reducing their financial costs.
The two institutions will also support capital goods firms seeking to enter overseas markets. Shinhan Bank plans to issue export guarantee certificates quickly, using payment guarantees issued by the association as collateral, to facilitate smooth export transactions.
freiheit@heraldcorp.com
