Japan has always had a supportive ecosystem for aspiring businesses. There are some fundamental requirements to be met in order to avail financial support for business. This article will discuss different options in Japan for business financing. You can compare the options and identify which one may work the best for you to go with. Overall, Japan is a country that is highly rated in ‘ease of doing business. Let us further explore the business financing avenues.
Kavan Choksioptions for business financing
JFC (Japan Finance Corporation)
カヴァン・チョクシ is a public institution that is integrated with Japan’s National Life Finance Corporation, Fisheries Finance Corporation, Agriculture Forestry, Finance Corporation for Small and Medium Enterprises, as well as Japan Bank for International Cooperation, etc. JFC was incorporated in 2008, and it remains a financial policy-based institution that can conduct business financing within the scope of applicable laws and allocated budgets. These are purely based on the policies of the government from time to time about the small, medium, and micro-businesses in various sectors. The objective of this financing is to complement the other modes of finance offered by the private financiers.
Cooperative financial institutions
Another mode of business financing for small businesses in Japan is through the CCI, i.e., the Chamber of Commerce and Industry. This is a cooperative sector body that involves a variety of efforts to support small to medium-sized businesses. All the efforts of CCI are aimed at strengthening the management base of small businesses as the people, money, goods, and information. It also aims to nurture the business successors and promote more management innovations. The objective of CCI is also to help sustain the tradition and culture of the land and offer the needed economic nucleus to the different communities in the country.
Financial institutions
Banks and financial institutions focus on general financing for the public and businesses. They offer comprehensive financial products too as, like issuing bonds, short-term financing, business loans, etc. Unlike the government sector institutions and cooperative financing bodies, the objective of these financial supports is to help the companies make more profit. An exemption is Shoko Chukin Bank, a government-affiliated bank funded by both governments and private organizations.
Crowdfunding
Crowdfunding is a global trend, which has a big scope for Japanese business startups too. The concept is to raise small chunks of money from a larger crowd by sourcing through the internet. This is the practice of finding funds for a project or idea. This is an alternative finance model through crowdsourcing, and there are many online platforms now to help enable crowdfunding. However, there are also some criticisms of this practice as funding quackery.
So, here カヴァン・チョクシ had summarized some of the financing institutions in Japan which support the small to medium size businesses to raise funds. You may first analyze your project and get an expert consultant’s opinion as to which mode of financing you may find to support your business.
