The Financial Services Agency has decided to introduce a new system that allows start-up companies that do not own real estate to obtain loans by collateralizing their future business potential, such as their technological capabilities.
We aim to start the system in two to three years after enacting a new law.
The Financial Services Agency (FSA) has been discussing the collateral system when companies receive loans from financial institutions.
Under this system, companies that want to raise funds can receive loans from banks, etc. by setting the future potential of their business, such as their unique technological capabilities and highly specialized knowledge, as collateral using the trust system. How it works.
Until now, the collateral for loans has often been real estate such as land and buildings, and small companies are required to have individual owners as joint guarantors.
If the new system takes hold, it is expected that startup companies that do not own real estate will be able to raise funds and SMEs will be able to take over the business smoothly.
The Financial Services Agency aims to start the system in two to three years after enacting a new law.