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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.

 

 

 

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