Overview of Japan Finance Corporation (JFC)

Japan Finance Corporation (JFC) is a policy-based financial institution acting as a public corporation established on October 1, 2008 after a merger of four institutions. Its primary mission is to provide financial capital for small and medium businesses as well as micro-businesses (including startups) for everyone with residency in Japan. With 152 branches all over Japan from Hokkaido to Kagoshima, JFC not only provides loans to these businesses but also supports them by providing information on business marketing and seminars.

Loans from JFC

Two of the major business operations are aimed at micro businesses and individuals, and small and medium enterprises (SMEs).

Micro Business and Individual Unit

Micro and Small businesses can vary to companies that have a close relationship with the people in local communities to high tech companies ready to enter a new market. 

The average loan balance per business is ¥ 7.03 million with a 2% fixed interest rate per year. No guarantor or collateral provisions are needed, however this may cause an increase in the interest rate.

Special loan programs for start-ups

JFC provides additional support for business start-ups that have yet to start and those that are within 1 year of start-up. Up to ¥ 72 million are disbursed to start-ups. However, as start-ups are considered a risky asset providing collateral provisions or a guarantor will lower the 2% base interest rate to 1.16 – 1.95%.

JFC-micro supports Women, Youth and Senior Entrepreneurs 

Women, young people below their 35s and seniors aged 55 or above are actively encouraged to engage in their start-ups by providing loans with an interest rate of 1.6% – which can decrease by giving a collateral or a guarantor-.

Small and medium enterprise unit (SME)

Small and medium enterprises are considered the source of Japan’s economic vitality. This unit specialises in long-term loans with fixed interest rate and, commonly, a landing period of over 5 years. These kinds of loans enable SMEs to raise long-term funds in a stable manner. The average loan is 97 million ¥ spread over 8 years with a fixed interest rate of 2%.

Necessary documents

Even though the documentation varies case by case these are generally the needed forms to obtain a loan:

  • Application form
  • Passport
  • Business documentation for Start-ups
  • Annual report finances (if you have it)
  • Licenses needed to operate the business
  • Evidence of sales (Sales contracts)


An initial consultation with JFC helps you decide on the best loan for your business. Moreover, there are no special requirements to obtain a loan but it all comes down on your financial situation and if you already have another loan.