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Financing support service

Financial institutions have a certain way of thinking and behaviors.

By looking at the behaviors of financial institutions, we act with great foresight to make quick funding possible and support growth of your business.

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Banks are not interested in mortgages or transaction histories.
A sound business strategy with high future prospects is the key to get a bank loan approved. Neither the availability of mortgages nor past transaction histories have any influence on creditworthiness. Businesses with low bankruptcy risk and high future prospects are more likely to get a loan approved. Banks are interested in companies with high growth potential and interesting business plans. After the company has applied for a loan, the best loan program will be proposed amongst 4 different types.

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<Kind of the financing>

• 

  Bill Discounting

  The company bills are bought by the bank. Bill discounting is optimal for short-term borrowing because settlement period is short.

• 

  Promissory Note

  The company draws a promissory note and the bank lends money to the company. This type of loan is simple and convenient because of cheap stamp taxes but financing period is within 1 year.

• 

  Overdraft

  With its "overdraft contract", the company is allowed withdrawing money even when the account has no funds in it. An overdraft is ideal for long-term financing.

• 

  Term Loan

  Term loans are set for a long period of time. The company fills out a form called "loan agreement" and sets the details about amount, date of borrowing, repayment method, interest rate and other conditions.

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<The Financial Institution's "Request for Decision" Screening Process Flowchart>

• Proposal for approval request
• →
• Section chief/assistant branch chief
• →
• District manager
  （if request for decision is processed in the headquarter: credit officer　→　senior credit officer　→　credit manager）
• →
• Financing

The key to get a loan approved is to provide detailed information about your business situation.

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<Point of the financing judgment>

Loan Funding Process	Details	Example/Type
Funding (purpose of loan)	How the loan is used
Repayment (source of repayment)	How the loan is repaid	Money planning (repayment plan), repayment condition, if a repayment is realistic with the current business plan
Mortgage	What kind of measures are taken if repayment fails	Availability of mortgages and guarantee (if funding is possible without mortgages or without guarantee)
Advantage	What are the advantages for the financial institute in funding the business	Increase of account balance, transfer to the designated account, etc.