Overview of KOTEC's Credit Guarantee Scheme
The credit guarantee scheme of KOTEC was designed to help innovative SMEs whose access to credit is limited due to lack of collateral capacity despite their prominent technological competency. KOTEC extends credit guarantee for them as long as their technology projects are deemed viable through technology assessment.
This is why KOTEC's credit guarantee scheme is otherwise called the 'technology guarantee scheme'. It refers to the credit guarantee whose decision is made on the basis of the technology assessment.
Through KOTEC's credit guarantee scheme, tech SMEs can overcome the problem of collateral deficiency and obtain financing for their R&D efforts as well as business operation. KOTEC remains a true partner for innovative SMEs throughout the whole periods of their business life cycle.
The diagram below shows how the KOTEC's credit guarantee scheme is structured. KOTEC provides credit guarantees for repayment of loans that tech SMEs would otherwise fail to obtain due to collateral constraints. Capital sources for the credit guarantee service come directly from the government budget and contributions by the domestic financial institutions.
Application for Loans
Consultation and Application for Credit Guarantee
Credit Investigation and Evaluation
Approval of Credit Guarantee
Issuance of Letter of Guarantee
Provision of Loans