Overview Loan Type Collateral Loans on Accounts Receivable Eligibility Companies that need to collect trade receivables after providing goods and services and those that applied for a loan. Loan Ceiling less than the amount of Accounts Receivable Borrower Sales Company Loan Rate Aggregated Credit Ceiling Base Rate (AB) + additional rate Term 1 year after approval of the loan Term per loan Maximum of 270 days (Including extension period) Interest payment Lump-sum Upfront Payment ¡æ This loan applies only to those companies that satisfy the Bank of Korea's criteria. How it works A selling company supplies goods to a purchasing company (buyer) under the contract reached between them. The buyer submits the payment statements to the bank If necessary, the selling company requests a loan to KEB. KEB deposits fund to the supplier's appropriate account within the amount on the payment statements. The purchasing company repays the exact amount to KEB on the settlement date What are benefits from 'Loans on A/R'? This enables a buyer company to : Streamline business processes, which are reducing paper works and errors, Cut down on expenses such as 'operating costs' and, Reduce Financial Fraud through transparent processes.