Shinhan Bank launches Korea’s first loan linked to B2B card payments

[Financial News] Shinhan Bank is introducing a financial product that links corporate customers’ purchase payments with loans. Under the arrangement, a purchase loan is automatically disbursed when goods are paid for with a corporate debit card, without a separate loan application.
According to financial industry sources on the 10th, Shinhan Bank will launch a dedicated loan product on the 11th, the first in Korea to link B2B card payments with bank loans.
The product is called “Bank.” It is a “one-stop supply chain finance” solution in which the bank’s dedicated loan is disbursed immediately when a purchase payment is made with a Shinhan corporate debit card on a B2B supply chain platform.
Unlike conventional corporate loans, this product disburses a loan only when payment is made for an actual purchase of goods. Corporate customers can obtain funds for purchases simply by paying with a card, without submitting separate documents or applying for a loan. For the bank, since the loan proceeds are used for actual purchase payments, the arrangement can prevent them from being diverted to other purposes.
Shinhan Bank has selected eSteel4U, a specialized steel distribution platform, as its first partner and will begin providing the service on the 11th. When an eSteel4U member company purchases steel products on the platform with a Shinhan corporate debit card, a dedicated B2B loan is disbursed at the same time as the payment.
Benefits have also been introduced to reduce purchasing companies’ financing costs. A preferential interest rate will apply to the dedicated “Bank” loan, and 0.5% of the card payment amount will be credited as points. The plan is to ease the cost burden of purchasing raw materials and improve the efficiency of corporate fund management.
A Shinhan Bank official said, “Bank is a new payment solution that goes beyond lending to make payments more convenient for businesses and reduce financial costs,” adding, “Starting with eSteel4U, we will expand our partnerships to a range of B2B industry platforms.”

[email protected] Seo Ji-yun Reporter