Gieun-Shinbo Join Hands for Low-Interest Loans Supporting Franchise Small Business Owners

IBK Industrial Bank announced on the 16th that it signed a "Business Agreement to Support Franchise-affiliated Small Business Owners" with the Korea Credit Guarantee Fund at the IBK headquarters in Jung-gu, Seoul on the 13th.

Through cooperation with the Korea Credit Guarantee Fund, IBK plans to launch 'Franchise PAY-LOAN,' a low-interest dedicated loan that allows franchisees to pay for essential items supplied by the franchisor not in cash but through financing. The franchisor will reduce accounts receivable risk by subscribing to a dedicated accounts receivable insurance provided by the Korea Credit Guarantee Fund.

This product will be introduced through the 'IBK Franchise Banking as a Service (BaaS),' a franchise-tailored logistics payment service newly launched by IBK this year. Franchisees can easily complete all processes, including loan applications and accounts receivable insurance subscriptions, non-face-to-face on platforms they frequently use.

Kim Sung-tae, President of IBK Industrial Bank, stated, "We expect this agreement to provide practical support to franchise-affiliated small business owners struggling due to economic recession and high interest rates," adding, "Reducing the franchisor's accounts receivable risk burden and improving the franchisees' cash liquidity will revitalize the franchise industry."