Duzon Bizon and Korea Federation of SMEs Sign Business Agreement on Financial Support for Small and Medium Enterprises and Small Business Owners

[Asia Economy Reporter Hyungsoo Park] Duzon Bizon announced on the 28th that it has signed a "Business Agreement for Financial Support for Small and Medium Enterprises and Small Business Owners" with the Korea Federation of SMEs.

In response to the recent decrease in inter-company promissory note payments and the increase in new financial demands such as accounts receivable factoring, the agreement was made to expand financial support for small and medium enterprises and small business owners. Both parties will first promote the introduction of Duzon Bizon's accounts receivable factoring service to the SME Mutual Aid Fund operated by the Korea Federation of SMEs in the first half of next year.

The Mutual Aid Fund and the Yellow Umbrella Fund of the Korea Federation of SMEs will also be available for subscription on Duzon Bizon's business platform, WEHAGO. Various collaborations will continue, such as providing discounted prices for Duzon Bizon's corporate business services including ERP and electronic tax invoices to SMEs and small business owners subscribed to the mutual aid.

Accounts receivable factoring is a service that uses Duzon Bizon's real-time tax and accounting big data to provide corporate information and verify the authenticity of sales between companies. Based on this information, fund providers review and purchase accounts receivable at a certain discount rate. Unlike loans, since it involves selling held receivables, there is no increase in debt, resulting in an improvement in credit rating.

The entire process from application to payment can be conducted 100% non-face-to-face without cumbersome document submission. Selling companies can collect payments early, and purchasing companies gain flexibility in payment periods, providing advantages in fund management for both sides.

A Duzon Bizon official stated, "We will continue to cooperate with the Korea Federation of SMEs to resolve financial difficulties faced by small and medium enterprises and small business owners struggling to manage funds." He added, "Since the official service transition in July, Duzon Bizon's accounts receivable factoring service has received great market response as external fund providers such as Mirae Asset Capital, Welcome Savings Bank, and Korea Investment Savings Bank have actively supplied funds."