The Ministry of International Trade and Industry is planning to expand its loan-guarantee program for small businesses to direct fundraising from the market starting in fiscal 2001, MITI officials said Wednesday.
Currently, public credit guarantee associations provide small and midsize firms with repayment guarantees primarily for loans from banks and other financial institutions.
While small firms rely heavily on loans to secure necessary funds, they increasingly need more fundraising tools in the wake of financial institutions' stepped-up loan collections due to pressure to improve their financial health.
Raising funds directly from the market place would include sales of accounts receivable and bond issues against the security of such credits.