2016 Volume 2016 Issue 2 Pages 35-45
“Guideline for Personal Guarantee Provided by Business Owners” was published from the Japan Chamber of Commerce and Industry and the Japanese Bankers Association on December 5th, 2013 and was introduced from February 1st, 2014. This “Guideline for Personal Guarantee Provided by Business Owners” was developed from the awareness of the issues that personal guarantees provided by the owners of Small and Medium-sized enterprises (SMEs) inhibit the growth of SMEs. As “The Basic Guidance of Accounting for SMEs” was developed so that the finance was smoothly carried out through improving the financial soundness of SMEs, both “Guideline for Personal Guarantee Provided by Business Owners” and “The Basic Guidance of Accounting for SMEs” were developed to cause a stir in the finance for SMEs relying collaterals such as real estate.
This paper describes background and aims of the development of “Guideline for Personal Guarantee Provided by Business Owners” and clarifies the actual conditions of finance for SMEs in this fiscal year and opinions of tax lawyers and positions of financial institutions against “Guideline for Personal Guarantee Provided by Business Owners”.
Further, this paper clarifies the significance of “Guidelines for Personal Guarantee Provided by Business Owners” and “The Basic Guidance of Accounting for SMEs” in the finance for SMEs and makes a proposal to expand the application of “Guidelines for Personal Guarantee Provided by Business Owners”.
