Shinhan Bank's new product ‘Account Receivable Loan’ increases financial support for Vietnamese businesses, particularly the small and medium-sized enterprise. — Photo courtesy of the bank
Shinhan Bank has launched a product called ‘Account Receivable Loan’ for small and medium - sized enterprises with preferential interest rates and other practical benefits.
It is a credit product that uses receivables from transactions between two companies in Viet Nam as collateral for a loan.
The seller will receive the loan based on receivables prior to the payment date, and the seller will repay the loan to the bank on the due date after receiving payment from the buyer.
The loan application process is carried out via Fin2B's SaaS based supply chain finance (SCF) digital platform, the leading SCF solution provider in Asia, especially in key markets such as Korea and Southeast Asia, ensuring maximum safety and convenience for customers.
The product provides a number of practical benefits to both buyers and sellers.
Simultaneously, buyers are allowed to select reputable partners to perform transactions based on the prestige of the two parties' relationship. Buyers can extend the loan repayment period of up to 180 days.
To sellers, it provides a low-interest, flexible loan to meet capital needs before maturity, and they do not need to mortgage any assets for the loan. Besides, they can apply for a loan on the digital platform without having to visit a Shinhan branch.
Vo Vy Tung, director of Shinhan Bank's corporate business department, said: "Shinhan Bank's commitment to the Vietnamese market is demonstrated by the launch of this new corporate loan product, which increases financial support for Vietnamese businesses, particularly the small and medium-sized enterprise customer segment, and provides financial solutions to businesses that effectively promote business development.
“Furthermore, it contributes to our bank's efforts to accelerate digital transformation in order to become one of Viet Nam's leading digital banks by 2030." — VNS