Reasons for registering a money lending business
Updated: July 2024, 3
If you are conducting any of the following businesses, you must be registered as a moneylending business.
Persons who must be registered as a money lending business (Article 2, Paragraph 1 of the Act) |
| ① Moneyloanis a person whose business is to mediate the lending and borrowing of money.
②A person whose business is to deliver money by discounting bills, securing security for sale, or other similar methods, or intermediating the transfer of money by such methods. |
Example of registration reason
In recent years, an increasing number of businesses are registering money lending businesses for a variety of reasons, including the possibility that some of their business operations may fall under the category of money lending businesses. For example, the following tasks apply.
①Consumer finance
② Loans for businesses, intermediation of loans
③Lending of purchase costs to customers (loan)
④Factoring and financing for businesses
⑤Payroll factoring for individuals
⑥Medical fee factoring (medical fee secured loan)
⑦ Loan-type crowdfunding, social lending
What is factoring?
Generally speaking, it is a service (a means of raising funds for a business) in which the accounts receivable, etc. held by a business are purchased by collecting a certain fee before the due date.
*Even if it is for businesses, it may fall under the category of moneylending business if it is considered to have the same economical function as a loan.
Medical fee factoring (nursing fee factoring, dispensing fee factoring) is a financing method that speeds up payment by transferring medical fee receivables (nursing fee receivables and dispensing fee receivables).
In addition, we offer a "payroll factoring" service in which we purchase the salaries (wage credits) that individuals have from their workplaces by collecting a certain fee before the salary payment date, and collect the funds through the individual after the salary is paid. has also increased in recent years.
Reasons for not being able to register
When registering a money lending business, those who fall under the following conditions will not be able to register.
① When there is a false statement regarding important matters in the application documents, or when important facts are omitted.
②The following matters do not apply to officers or employees specified by government ordinance (in the case of corporations):
i. A person who is unable to conduct money lending business properly due to mental or physical disorder.
ii. A person who does not obtain reinstatement after receiving a decision to commence bankruptcy proceedings.
iii. Registration was canceled in the past for less than 5 years
iv. Five years have not yet passed since the execution of a sentence of imprisonment or higher.
v. Five years have not passed since the date of ceasing to be a member of an organized crime group.
vi. Other cases where there is reason to believe that the money lending business is fraudulent or dishonest, etc.
