To support the financing of small and medium-sized enterprises Evaluate unique technology and future potential Financial Services Agency November 9, 6:59
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The Financial Services Agency has begun studying a mechanism to make it easier for financial institutions to evaluate the future potential of companies and make loans.
The aim is to support the financing of SMEs affected by the new coronavirus.
The Financial Services Agency has set up a study group made up of experts and has begun discussions to drastically review the method of setting collateral when financial institutions lend to SMEs.
It has been pointed out that collateral setting tends to be biased toward real estate and personal guarantees of business owners, and that financial institutions do not fully evaluate the value of companies.
For this reason, the study group is considering making it possible to collectively set the unique technology and business potential that SMEs have refined as collateral, and plans to compile a report by the end of this year.
The Financial Services Agency hopes to support the financing of small and medium-sized enterprises affected by the new coronavirus by establishing a mechanism that makes it easier for financial institutions to evaluate the technology and future potential of enterprises and make loans.
We also want to make sure that the funds are distributed to venture companies that do not have real estate.
Yu Ozaki, Chief of the General Affairs Division of the Financial Services Agency, said, "Based on the report of the study group, I would like to discuss with the Ministry of Justice for the necessary revision of the law."