|
|
|
| Need for risk solution |
It is one of the main assignments to avoid credit risks in running a new business, or branching out for a new profit. It is general for a company to have their own credit risk management to minimize the risks, but it is not enough to avoid serious harms. Some companies may have a structure to transfer the credit risk, but it seems to us that it is not a general approach.
In the meantime, the number of bankruptcies and defaults are increasing do to change in laws. This makes it impossible to determine witch companies may make bankruptcies. In such situation, we believe the need for credit risk management is massive, and interest is in how to manage the credit risk effectively. |
| What is our Surety Service? |
We guarantee mainly the sales receivables that may take place in business to business transactions. Our business starts off by setting maximum payment amount. When the actual bankruptcy occurs, we make payments up to the maximum payment amount that we guaranteed. This makes it possible for our customers to focus on their business, and avoid failure to collect financial debt.
What we offer is not only the surety, but also the ability to act as a device to monitor obligors' credit risks. The effect similar to out-sourcing the credit risk management can be gained by our surety service. When we gain serious facts about the obligors financial condition, it is our duty to inform our customers. Our ability to act as a device to monitor credit risk can be used to minimize the cost of management, and focus on the main business.
We make our service suitable for our customers, by consulting credit risks. Our evaluation and risk management structure can offer a service that is suitable for our customers. That is how we offer a total risk solution. |
 |
The general risk hedge service is somewhat limited to sales receivables. Under contract receivables and general receivables concerning business to business relationship are hard to minimize risks.
Our surety service is not limited to those sales receivables, but can be used in various agreement and claims. We offer guarantee to mostly any type of claims and create a service that is suitable for our customers. |
 |
Surety on Sales Receivable |
| |
Not only the general sales claims, but we can manage sales claims in Internet business. We can make arrangement suitable for customer's situation, such as, branching out into new business field, making new business relationships, risk management against existing clients. |
| |
|
|
Surety on Under Contract Receivables |
| |
It is difficult to manage credit risks in under contract receivables, because of the fact that under contract receivables are difficult to determine obligor and oblige. We can offer a surety on these difficult receivables. We have established knowledge by actually handling these credit risks. The knowledge and our highly constructed structure make it possible to give put surety. |
| |
|
|
Other Surety Service |
| |
We do not restrict our service. It is our policy to create a service suitable for our customers. In the future, we are willing to expand our service to various industries and act as a tool for our customers to focus on their business. |
| |
|
|
Credit risk Consulting Service |
| |
As a pioneer in the field of surety in Japan, we offer credit risk consulting service to those merchant, construction firms, and suppliers. We have the expertise in surety to support and give advice in handling credit risks. |
| |
|
|
Surety Structures and Payment Methods |
| |
Surety service for Merchants, we offer two types of structures. The first structure is to make a certain rules and we guarantee the obligors that fit in the rule all together. On the other hand, we do individual guarantee against only the ones necessary for avoiding credit risk.
The payment methods are unique, we handle three types of payment methods and customers may chose. The three types of payment methods are payment by sales, payment by the maximum surety amount, and payment by remaining receivables.
The two structure and three payment methods all have its' merits and by making arrangement with these selections, we can offer service that is suited for our customer. |
|
| Surety by groups |
|
| We ask our customers to make objective rules and we guarantee the obligors all together. Although our customers may not be able to choose obligors to have surety, the grouping means the risk are gathered fairly and disperse can be made, thus we can manage to offer our service with low cost. The grouping can also mean, highly risked obligors and a low risk obligors put together, because of this we can offer large amount of surety on highly risked clients. Using guarantee by groupings, our customer can put all clients in our guarantee, and manage risk control with low cost. |
| |
| Surety by selecting |
|
| The main point of this service is that, customer may choose the obligors that they want to have surety on. In comparison with grouping, the cost of guarantee will rise, but combination with the risk management that customers do them self, it is an effective way to manage risks. |
| Payment by sales |
|
| In this method, we receive monthly sales amount, and we claim fee for only the sales amount, neglecting the payment that has already settled. It is easily compared with profit and can manage the surety fee as a cost in sales price. In times when there are no sales, we do not claim any fees; it can be used on business that comes up seasonal or new comers. |
| |
| Payment by Maximum Amount of Surety |
|
| In this method, we receive fee for the maximum guarantee amount multiplied by the yearly surety rate. In this method, we will receive fee when there are no sales, but by setting adequate maximum amount, it is a service easy to apply for. There are no needs of sending monthly payment, and the yearly fee can be fixed. This payment method is suited for those clients that have steady amount of sales every month. |
| |
| Payment by remaining sales claim |
|
| We receive fees for the remaining sales claims; the payment is done every month. Each month we receive, how much claims are left. It is suited for those clients that have long terms of credit risk and reduces every month. |
|
We can offer surety on those structure that financial institution created to transfer credit risks. The surety will allow financial institution to reduce credit risks. Our service can stabilize the expected rate of return by controlling credit default risks, allowing them to collect more finance from investors.
The improvements in financial engineering has expanded the securitization markets, the financial process of collecting finance has diversified and it is possible to gain finance with low costs, as well as risk asset strategies and ways to reconstruct financial asset has developed. In the future, we will be able to apply our strategies on any credit risk transfer structure by using the financial network and highly systemized risk portfolio management. |
| Surety for Credit Card Companies |
|
We can hedge credit risk that credit card companies have on credit risks.
In running a business, the need for most effective way to gain cash is increasing. Credit card companies have constructed scheme to give payment for these companies, but the problem of handling credit risk has transferred to these credit card companies. Our surety service can reduce credit risk and by doing so, it is possible for the credit card companies to take on large amount of credit risks. |
| |
| Surety on Surety |
|
We guarantee those financial institutions that run surety, factoring, and lease business. The rise in the need for surety on credit risk has created our counter party, financial institution have expanded their business in guaranteeing credit risks. It is odd to put surety on those claims that already has guarantee, but it is true that financial institution has limit on the amount. We guarantee those credit risks that financial institution have taken and distribute them in a safe condition. We minimize each risk and create portfolio that can be invested.
We can support to construct business procedure for those financial institutions that run surety business. We can offer our expertise and database to start surety business. |
| |
| Credit Derivatives |
|
CDS: Credit Default Swap
Our CDS offers our customers to hedge credit risks. Our CDS handles, those companies that is listed but has no ratings and middle to small scale enterprises. In the past years, the scale of credit default swap is approximately 39 trillion yen in Japan. The usage of CDS is, unfortunately limited to those companies who have ratings by such rating companies, and often the existent CDS is available from several million yen. In the environment where business is in decline, the need for credit risk solution is massive. Our service is new in the way that non-rated companies are targeted. Our standard is simple; we pay only when the object falls in bankruptcy. CDS will ensure a settled payment when the bankrupt occurs. It can be used in business transaction, and also when there are no obligations. |
| |
| Other claim guarantee service |
|
| We can give solution to managing other claims such as lease claims, restoration claims, and purchased bill claims. Through our guarantee service, we aim to make contribution to our customers' success in business and we will make challenge to meet our customers' expectations. |
| |
| Credit Risk Consulting |
|
| As a pioneer in the field of guarantee, we offer credit risk consulting service to those financial institutions willing to branch out in surety business. We have the expertise in guarantee to support and give knowhow in this business. |
|
|
|
|
