Korea Credit Guarantee Fund: Who Qualifies and What You Get
Learn how small businesses in South Korea can use credit guarantees to secure bank loans when they lack sufficient collateral.
The Korea Credit Guarantee Fund provides credit guarantees to help small business owners access bank financing. This support is designed for those who may struggle to secure loans due to a lack of traditional collateral.
Who it's for
This scheme is for small businesses that need bank loans but do not have enough physical assets or collateral to satisfy a bank's requirements.
What you get
You receive a credit guarantee, which acts as a form of security for your lender. This guarantee helps you secure the bank financing you need to run or grow your business.
What it costs you
While this is not a direct cash payment to you, you must pay a guarantee fee. This fee is typically a small percentage of the total loan amount you receive.
The catch to know
The approval process is not automatic. The fund conducts a thorough review of your business's financial health to determine if you qualify for the guarantee.
How to apply
- Prepare your business financial records and documentation.
- Visit the official portal to review the specific requirements.
- Submit your application for a financial health review.
- Once approved, use the guarantee to finalize your bank financing.