What is K-Buyer Financing for Multiple Seller and what are its benefits?
K-Buyer Financing for Multiple Trade Partners is a short-term working capital loan, subject to annual review, with the aim of supporting the purchase of goods and/or payments to sellers as specified by KBank.
Benefits:
- More rapid payments to trade partners to receive cash discounts that are often more lucrative than bank interest
- Enhanced liquidity for business operations, with loan limits and collateral conditions that are better than other loans, thus reducing financial costs
- Convenient drawdowns by an electronic processing system
- Limits and revolving account terms best suited to actual business needs
Which business categories are suitable to this type of loan?
This loan is tailored to meet the needs of business customers that buy goods for manufacturing and/or distribution from their regular trade partners
Is any personal guarantee or asset pledged as collateral required for this loan?
Asset collateral is required at 25%-65% of the requested funding, in accordance with customer’s credit ranking, trade partners and industry.
The proposed collateral must indicate the actual owner.
Types of Collateral
- Land, as a Core Asset used by the business, i.e., its venue or a related residence
- Deposits
The guarantors must be key executives holding together over 20% of the total shares, or other guarantors holding together over 51% of the total shares with at least one guarantor being a stakeholder in the business, such as a managing partner or authorized director.
How to use the service via the internet?
Fill in the application form to initiate online credit service (K CONNECT-Supply Chain) with payments made by buyers. The application form shall be submitted to KBank via an RM.
How to process lown drawdowns?
- The Borrower must fill in an application form to initiate online credit service (K CONNECT-Supply Chain) with payments made by buyers. The application form shall be submitted to KBank via an RM. KBank will issue a Username and Password to each system user.
- The Borrower can access the K CONNECT-Supply Chain system via the KBank website, where you can create requests and approve trade partner drawdowns.
- After the Borrower approves a drawdown item, the system will verify the accuracy of each request. If correct, the system will transact the payment into the trade partners’ account.
How to check the limits used, outstanding balance and interest rate?
Such information can be checked via the K CONNECT-Supply Chain system under “Create Payment Items”.
How to make repayments?
For Revolving Loans
On repayment due dates, borrowers can place the principal and interest into the current or savings account specified by KBank. KBank will then auto debit the payment on the installment due date. Within 18.00 hrs. of the due date, the outstanding balance in the Borrowers’ account must be adequate for both the principal and interest payment. If paid by cheque, the cheque must be cleared accordingly.
For O/D Buyer Financing
Borrowers can place funds into their current account at any time to reduce the O/D balance, similar to other general O/D accounts. Such O/D accounts must exhibit movements consistent with KBank conditions, with the amounts collected from sales or deposits sufficient to cover the O/D balance.
