Rental conversion (RX) startup Freefins announced on the 6th that it signed a 20 billion won 'rental brokerage business and accounts receivable factoring business agreement (MOU)' with Total Living, a company specializing in commercial food waste disposers.
Total Living supplies the eco-friendly food waste disposer 'Zero Stone' utilizing microorganisms to the B2B and B2G markets, and is a strong company that has a high market share in various fields such as major domestic food service companies, hotels and resorts, general hospitals, military units, universities, and campgrounds. Freefins provides B2B and B2G rental trading (RT) services to help increase Total Living's sales. Rental trading is a service that acts as an agent for supply contracts with rental companies on behalf of manufacturers and sellers, allowing manufacturers and sellers to focus on research and development.
Pripins plans to expand new orders for Zerostone, an eco-friendly food waste disposer, by cooperating with specialized equipment suppliers and campground operators. Pripins also expects synergy between RX value chain partners. RX value chain is a virtuous cycle program that reduces business costs and increases sales and profits through rental conversion, thereby expanding the rental market size.
Since the rental business is characterized by purchasing and producing products in bulk and then renting them out for a long period of time to earn profits, securing operating funds is important. Freefins supports accounts receivable factoring to expand Total Living’s rental business. Accounts receivable factoring is a method in which financial institutions purchase trade receivables from companies with high growth potential and provide funding.
Jeon Yun-su, CEO of Total Living, said, “More businesses can now use eco-friendly food waste disposers without burden by switching to a rental model,” and “We will continue to invest in product development to maximize customer value.”
Shin Sang-yong, CEO of Freepins, said, “We are delighted to be building a rental conversion value chain with Total Living,” and added, “We will continue the virtuous cycle success story of expanding customer choices through rental methods and growing the company.”
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