Consumer financing firm Acom Co., Softbank Finance Corp. and nonbank lender Nissin Co. said Tuesday they have basically agreed to cooperate in the "shoko" collateral-free, high-interest loan business.
Under the agreement, Nissin will buy 300 million yen in new shares that were to be floated Tuesday by E*NetCard Co., an online consumer loan and credit-card company, the three firms said in a press release.
Some 51 percent of E*NetCard is owned by Acom, while 49 percent is owned by Softbank Finance, a financial services unit of Softbank Corp.
The three companies said they plan to have E*NetCard play a key role in the joint shoko loan business.
As a result of the third-party share allotment scheme, Nissin will get a 25 percent stake in E*NetCard, with Acom owning 38.25 percent of the venture and Softbank Finance owning 36.75 percent.
Shoko loans refer to credit typically extended to small businesses without collateral but at exorbitant interest rates.