Today’s Business Japanese is “Kojin-Hoshou （Personal Warranty）”.
Japanese banks have “Yuutan-Gensoku (Collateral Principle)”. They have always taken collateral when they lend money from the borrowers.
They intended to relieve their risk in case of bad debt.
In other words, Japanese banks is not able to evaluate whether the incubation goes successful.
In case of small companies, Japanese banks require company owner’s house and property as collateral. This is so called “Kojin-Hoshou”.
If the company owner fails in their business, they will lose everything including their house and savings and they can not live an ordinary life.
Therefore, it is told to be one of the reasons why there are not many entrepreneurs in Japan.
It is said that Japanese banks lend umbrella when it is sunny and take it away when it rains.
They actually do not play their role to incubate small business and help entrepreneurs.
Tsubasa Japanese Language School
Japanese Language School in Roppongi, Tokyo
