Bad Debt and Guarantee Enforcement Risks in MF KESSAI’s Billing Agency and Accounts Receivable Collection Business
First written in FY2017-Q3. 4 of 9 entries say "Restated". Latest entry: FY2025.
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- FY2025MaterialisedAnnual report
「Following receipt of notice from the insurer that is the counterparty to the insurance contract related to the factoring business for accounts receivable that insurance claims would not be paid, we recorded the amount expected to be irrecoverable as an impairment loss on insurance claims receivable.」
Insurance claim non-payment occurred in connection with the mechanism for transferring credit risk to an insurance company, and an impairment loss on insurance claims receivable of ¥540.814 million was recorded. - FY2024-Q2RestatedAnnual report
「During the six-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」
A comprehensive disclosure states that there have been no material changes concerning bad debt and guarantee performance risks at MF KESSAI. - FY2023-Q3RestatedAnnual report
「During the nine-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」
A comprehensive disclosure states that there have been no material changes concerning bad debt and guarantee performance risks at MF KESSAI. - FY2022-Q1MitigatedAnnual report
「Applications for the accounts receivable early financing service “Money Forward Early Payment” increased as the sales and screening systems were expanded, and the service continued to perform well.」
The sales and screening systems were expanded to address credit risk in the settlement and accounts receivable early financing businesses. - FY2021-Q3MitigatedAnnual report
「In the Finance domain, we continue to operate the intercompany deferred-payment service Money Forward Kessai and the accounts receivable early-financing service Money Forward Early Payment with an enhanced screening system. Meanwhile, the acquisition of new customers and other initiatives progressed, and cumulative transaction volume (Note 4) exceeded ¥50 billion as of early September 2021.」
The screening system for the settlement and accounts receivable early financing businesses continues to be strengthened. Cumulative transaction volume exceeding ¥50 billion was also disclosed. - FY2021-Q2MitigatedAnnual report
「We continue to operate the intercompany deferred payment settlement service “Money Forward KESSAI” and the accounts receivable early financing service “Money Forward Early Payment” with enhanced screening systems.」
The screening system continues to be strengthened to address bad debt and guarantee performance risks in the settlement and early financing businesses. - FY2020-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No material change was reported in the bad-debt and guarantee-fulfilment risks related to MF KESSAI. - FY2017RestatedAnnual report
「The Group as a whole bears part of the bad-debt risk relating to accounts receivable purchasers. Although the Group believes it has sufficient expertise in credit management for payments by small and medium-sized enterprises, guarantee fulfilments exceeding expectations could adversely affect the Group's results.」
The risks of guarantee fulfilment and bad debt related to MF KESSAI and MF HOSHO continue to be identified as full-year risk items. - FY2017-Q3First statedAnnual report
「As a method of collecting payments from accounts receivable purchasers, the Group seeks to ensure collection by obtaining guarantees from its subsidiary MF HOSHO株式会社, and also transfers the risk to insurance companies through insurance coverage. As a result, the Group as a whole bears part of the bad-debt risk relating to accounts receivable purchasers.」
The new payment service conducts many transactions with relatively small companies and business owners with high credit risk, and the impact on results if guarantee fulfilments exceed expectations was disclosed as a risk for the first time.