(Published: 2024/6/17)

For individuals in the startup phase (those who are starting a new business or within two years of starting), it is often challenging to secure funding due to a lack of sales track record and other reasons. Therefore, Japan Finance Corporation (JFC) focuses on supporting a wide range of startups and new businesses through startup financing, including new business startup funds. Although JFC is a corporation, it is wholly owned by the Japanese government and exists for policy purposes. It’s important to note that while JFC offers loans, it does not handle deposit services like banks do. JFC is the most commonly used entity when considering loans at the time of company establishment. Moreover, it is available not only to companies but also to sole proprietors. Let’s take a look at the benefits of JFC’s startup financing.


– As a general rule, loans can be utilized without collateral or guarantors.

– The interest rate is uniformly reduced by 0.65%, making the loans available at a lower interest rate than usual.

– The repayment period varies depending on various conditions but is generally around 5 to 15 years. Additionally, there is a grace period during which repayment of the principal is not required.

Who is eligible?

Those who are starting a new business or within two years of starting a business can use this service. Additionally, it is necessary to formulate an appropriate business plan and be recognized as having sufficient ability to execute the plan. This requires creating a “Startup Plan”. This document (link) is available on JFC’s official website, and examples for software businesses are described here (link). It’s important to note that all documents are in Japanese.

Key points of the startup plan include:

– Clearly stating why you are starting the business.

– Precisely detailing to whom you will sell your products or services and whether you have the experience for it.

– Providing projected sales and expenses based on substantiated figures and clearly describing the calculation methods.

– Clearly stating the reasons for borrowing, such as the need for large initial equipment investments for certain businesses.

The overall content of the startup plan must be convincing, as newly established businesses often lack past sales records, and there is limited information for JFC to determine the feasibility of providing a loan.


It is recommended to use JFC when establishing a company or starting a new business as a sole proprietor. Initial sales may be unstable, but utilizing startup financing can help you navigate the early stages successfully. Key points include the availability of no collateral or guarantors, low interest rates, and a repayment period of around 5 to 15 years. Ensure that the startup plan is compelling to secure financing.