6. Finance Related Measures

1. SBIR
(Small Business
Innovation Research)

2. SME/Venture
Business Support
Center

3. Entrepreneurship
Workshop

4. Start-Up Loan
Program

5. Dissemination
of Managerial
Improvement
Know-how

6. Finance related
measures

Contents Top >

6	Finance Related Measures

Arrangement for Guaranteed Letter Bonds

Arrangement for Guaranteed Trade-Receivable-Backed Loans

Arrangement for Guaranteed Letter Bonds

< Outline of the measure >

Example 1:	an example of efficient funding by a business owner who is a great contributor to the society and indispensable to the district
Example 2:	an example of efficient funding by a long-established maker to cope with changing external environments
Example 3:	an example of stable funding for development by an R & D-oriented company
Example 4:	an example of funding by a company of high technical capabilities for a stepping-up purpose
Example 5:	an example of funding used as a first step toward registration on over-the-counter market and stock listing

Arrangement for Guaranteed Trade-Receivable-Backed Loans

These examples were compiled from actual cases that utilized Receivables- Backed Loan Guarantee System in the three months following the implementation of the system on December 17, 2002

<< Table of Contents >>

< Outline of the measure >

<	Example 1> Case where offering goods accounts receivable as collateral subject company could fund an amount equivalent to what would have been possible against property security.
<	Example 2> Case where under this system subject company funded working capital while it would fund capital investment against property security.
<	Example 3> Case where subject company utilized long-term receivables as collateral and increased liquidity on hand, which resulted in a improved profit rate.
<	Example 4> Case where subject company could change the "maximal collateral" method in effect at the time of application to that of "case-specific collateral" in accordance with each transaction.
<	Example 5> Case where subject company utilizes this system by the maximal collateral method to further expand business through quick and flexible purchasing.
<	Example 6> Case where subject company utilized this system seeking to stop financial dependence upon parent company.
<	Example 7> Case where subject company used as collateral accounts receivable that were growing with sales growth, and funded additional working capital requirement that was increasing in line with business expansion.
<	Example 8> Case where subject company funded capital required for developing new customers by utilizing this system.
<	Example 9> Case where despite a clause prohibiting assignment of receivables subject company obtained consent of the client to nullifying the clause for utilizing this system.
<	Example 10> Case where by borrowing against receivable offered as collateral subject company improved buying terms through change of the method of payment to suppliers from trade notes to cash payment.

Top of This Page | Contents Top