Gibo Leads Innovative Finance with 'Small and Medium Enterprise Factoring' Without Recourse Rights

2025 Funding of 100 Billion KRW
Leading SME Liquidity Support

The Korea Technology Finance Corporation announced on the 3rd that it will provide funding worth 100 billion KRW through the 2025 Small and Medium Enterprise (SME) Factoring Project to alleviate financing difficulties faced by SMEs struggling due to prolonged domestic demand slump, high inflation, and high exchange rates.

Kibo introduced and has been operating the ‘Non-Recourse SME Factoring’ system since 2022, allowing SMEs with excellent technological and business performance to convert their accounts receivable into cash early without worrying about the insolvency of their clients.

To create a prompt and stable payment environment for delivery payments, Kibo has established its own platform where related tasks such as issuing accounts receivable, managing payments, and automatic withdrawal on maturity dates can be handled online. Through this, after applying for factoring, the delivery payment is advanced to the selling company within 3 business days, and funds are collected from the purchasing company within 90 days.

Kibo is also reorganizing its structure and system to enable factoring users to use the service more conveniently. It plans to establish and operate specialized teams in Seoul and Busan responsible for the overall business including consultation, evaluation, and purchase screening. Additionally, a repayment maturity extension system will be newly introduced in the first half of the year to ease the repayment burden on purchasing companies temporarily facing difficulties in securing working capital.

Kim Jong-ho, Chairman of Kibo, stated, “Through the SME Factoring system, Kibo supports SMEs in securing liquidity quickly, enhances transactional stability between purchasing and selling companies, and takes the lead in spreading mutual growth. Even amid the complex economic crisis, we will focus Kibo’s capabilities to ensure that SMEs and venture companies can concentrate on their business activities with peace of mind and to boost the overall vitality of the national economy.”