NAVER Financial Lowers Requirements for Business Loan Eligibility, Makes Financial Aid More Accessible
NAVER Financial Lowers Requirements for Business Loan Eligibility, Makes Financial Aid More Accessible
- The number of eligible applicants has increased by 40% due to the advancement of the Alternative Credit Scoring System (ACSS)
- Eliminates a financial barrier by lowering the standard for loan eligibility to applicants with monthly sales over KRW 500,000 for 3 consecutive months
- NAVER to provide more financing opportunities for those who were unqualified to apply for loans from other financial companies
2021-01-29
NAVER Financial will expand the target audience for the Mirae Asset Capital Smart Store Business Loan, the first unsecured loan for online SMEs, through the advancement of Alternative Credit Scoring System (ACSS), only two months after the launch.
ACSS has rapidly advanced its system based on Smart Store data since its launch last December. The ACSS uses Smart Store sellers’ activity data, such as real-time sales, repeat customer rate, refund rate, and customer service response time for credit scoring, so that thin filers with little or no financial data or credit history can also apply for loan review.
The application standard for Mirae Asset Capital Smart Store Business Loan has been lowered for Smart Store sellers, from KRW 1 million per month to KRW 500,000 in monthly sales for three consecutive months, increasing the target audience for the loan by 40%. The lowered application standards allow more SMEs to apply for business loans, creating opportunities for borrowing money on better terms.
“NAVER’s confidence in ACSS led to it lowering the loan application criteria. The loan approval rate of total applicants is about 40%, among which the loan approval rate for thin filers is about 52%, and without default issues so far, indicating high reliability in the loan review process,” said Tae Kyung Lee, leader of loan services of NAVER Financial.
Online SMEs often urgently need additional funds in the short term to cope with unexpected situations, such as sudden increases in orders. However, having no offline stores and short business operation periods forces sellers to take out loans at high interest rates. The Mirae Asset Capital Smart Store Business Loan has no early repayment fee and can be executed in 3 minutes, allowing online SMEs to receive financial aid when in urgent need. Notably, principal and interest payments have been made without a single overdue so far.
During the conference call for the 4Q 2020 earnings announcement held on Jan. 27, NAVER Financial CEO In-hyuk Choi said, “NAVER Financial is supporting the growth of online SMEs with data-based technology and financial programs, such as the world’s fastest payout system and ACSS.” He added, “We will position ourselves so that online SMEs who have a difficult time getting funding from other financial companies can think of Mirae Asset Capital Smart Store Business Loan first when they need money.”
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