There are many small and medium-sized businesses that are looking to grow big with new and promising ideas and the experience and know-how equal to larger companies. But with that growth comes many challenges. Small enterprises often do not have enough cash on hand, so they can quickly lose their growth momentum. When that happens, the progress that has been made is often lost, causing a national loss in a broad term. The government has various programs to support this, one of which is the small business policy fund.
This is a support to promote the growth of small and medium-sized enterprises by providing long-term and low-interest financing to small and medium-sized enterprises with excellent technical and business performance. Priority is given to companies in the areas of job creation, export, facility investment, and innovation, and the Korea SMEs and Startups Agency provides direct or credit loans to companies with high potential for future growth based on technical and business assessments. But this requires documentation which is not easy for companies to prepare alone. This is the point they need help from professionals. Small and Medium Business Policy Money Administration Center (SBM) is an organization providing this kind of help. Monthly PowerKorea paid a visit to the center and learned what they do.
Customized policy funding consulting for small businesses
From working capital and facility funding to management consulting
SBM finances more than 1,000 companies every month by researching the most affordable ways to access government funding. SMEs often don’t have the departments or managing directors to prepare for funding reviews, so the only option is to work with an outside organization specialized in this. As a result, there is a problem that service providers are scattered and mainly deal with limited fields such as taxation and certification, or you have to pay a lot of money for support. To address these challenges, SBM combines funding and consulting to provide a holistic approach to the various disciplines required.
SBM’s primary focus is on working capital, facility financing, and management consulting. Consulting includes financial planning, tax planning, tax avoidance, venture identification, R&D, component materials, corporate certification, financial statement analysis, management team, job creation, and employment subsidies.
Unrivaled scale among policy funding consultancies
A wealth of experts
SBM provides more than 20 billion won in working capital and 50 billion won in facility funding every month and consults with more than 1,000 companies every month. SBM has the expertise to pass complex and demanding audits at once. There are more than 300 types of policy funds, making it difficult for companies to find the right one for them. SBM researches and analyzes all types of policy funding and consults on the most appropriate funding sources. SBM has a rich network of experts. Experts such as labor lawyers, tax lawyers, tier 1 bank branch managers, and government policy experts add to SBM’s wealth of experience and know-how. SBM Director Sukwon Kim says “We have patent attorneys, accountants, tax accountants, lawyers, and other professionals that are specifically geared toward businesses, so if they have a problem or need something, we have a network of people that can help them.”
SBM’s talented team can help you obtain financing for raw materials, working capital, machinery, plant construction, land acquisition, sole proprietorship conversion, family succession, tax audits, and labor disputes.
Partnerships with various financial institutions and insurance companies
SBM’s unique strategy and know-how
Through a network of strategic business alliances with various financial institutions, SBM has designed a variety of financial products to meet the needs of clients, and has provided optimal financing and management consulting in conjunction with each branch of the tier 1 financial sector. SBM delivers sustainable solutions through three core competencies: unrivaled scale, many experts, and a strong network of financial institution partners. An official of SBM says “With these capabilities, we’re helping companies get what they need and fill in the gaps to create a better business environment.”
The Korea Administration Center is a financial insurance company specializing in corporate management CEO plans and CEO term insurance, and is the parent company of SBM. SBM provides clear management advice and collaborates with the center to ensure the best possible outcome. SBM Director Sukwon Kim says “SBM has the business strategy and know-how to grow with you. Trust us, talk to us, and you’ll see for yourself.”