Risk of non-collection of receivables arising from subrogated payments
First written in FY2017. 20 of 33 entries say "Worsened", first in FY2021-Q2. Latest entry: 2026-07-28.
Entrust moved to the "Worse" side of this theme in 2021.
1 other company's latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「As of the end of March 2026, advances amounted to ¥6,048.255 million, representing 47.1% of total assets. To provide for losses arising from the uncollectibility of receivables and losses resulting from future guarantee claim payments, the company has recognized allowances for doubtful accounts and guarantee claim payments based on historical recovery performance and other factors. As of the end of March 2026, the allowance for doubtful accounts was ¥3,277.419 million and the allowance for guarantee claim payments was ¥868.226 million.」
Advances amounted to ¥6,048.255 million, or 47.1% of total assets, and allowances of ¥3,277.419 million for doubtful accounts and ¥868.226 million for guarantee claim payments were recognized. Credit-risk-related balances, including advances and the allowance for doubtful accounts, increased from the end of the previous fiscal year. - FY2026-H1WorsenedAnnual report
「This was mainly due to increases of ¥428.298 million in advances, ¥565.538 million in cash and deposits, and ¥254.649 million in the allowance for doubtful accounts.」
Advances increased from ¥4,991.621 million at the end of the previous consolidated fiscal year to ¥5,419.919 million, while the allowance for doubtful accounts increased from ¥2,555.908 million to ¥2,810.558 million. Recovery and non-recovery exposure after subrogation payments is expanding. - FY2025-H1WorsenedAnnual report
「Current assets totaled ¥9,100.331 million, an increase of ¥661.569 million from the end of the previous consolidated fiscal year. This was mainly due to increases of ¥658.751 million in advances, ¥311.782 million in cash and deposits, and ¥324.837 million in the allowance for doubtful accounts, despite a ¥42.186 million decrease in accounts receivable.」
Advances increased by ¥658.751 million from the end of the previous consolidated fiscal year to ¥4,483.731 million, while the allowance for doubtful accounts increased by ¥324.837 million to ¥2,059.941 million. Recovery and non-recovery exposure after subrogation payments is expanding. - FY2024-Q3WorsenedAnnual report
「Current assets totaled ¥7,722.822 million, comprising mainly cash and deposits of ¥5,183.706 million, accounts receivable of ¥209.566 million, advances of ¥3,538.351 million, and an allowance for doubtful accounts of ¥1,675.058 million.」
At the end of the third quarter after consolidation, advances of ¥3,538.351 million and an allowance for doubtful accounts of ¥1,675.058 million were disclosed. Advances and the allowance for doubtful accounts increased from the previous disclosure, expanding the recovery and non-recovery exposure. - FY2024-Q2WorsenedAnnual report
「Current assets amounted to ¥7,743.742 million, consisting mainly of cash and deposits of ¥5,229.849 million, accounts receivable of ¥209.235 million, claims paid on behalf of customers of ¥3,244.174 million, and a provision for bad debts of ¥1,461.317 million.」
Claims paid on behalf of customers increased from ¥3,110.554 million in the previous disclosure to ¥3,244.174 million, while the provision for bad debts increased from ¥1,344.538 million to ¥1,461.317 million. Exposure relating to collections and non-collections after payments made on behalf of customers has increased. - FY2024-Q1WorsenedAnnual report
「Current assets amounted to ¥7,185.872 million, consisting mainly of cash and deposits of ¥4,695.053 million, accounts receivable of ¥182.760 million, claims paid on behalf of customers of ¥3,110.554 million, and a provision for bad debts of ¥1,344.538 million.」
The consolidated balance sheet disclosed claims paid on behalf of customers of ¥3,110.554 million and a provision for bad debts of ¥1,344.538 million. Both balances increased from the previous disclosure of ¥2,533.186 million and ¥875.429 million, respectively, quantifying credit-risk and collection exposure, including the impact of consolidation. - FY2023-Q3WorsenedAnnual report
「This was mainly due to claims paid on behalf of customers increasing by ¥522.081 million and cash and deposits increasing by ¥627.556 million, while accounts receivable decreased by ¥49.688 million and the provision for bad debts increased by ¥228.508 million.」
Claims paid on behalf of customers increased from ¥2,011.105 million at the end of the previous fiscal year to ¥2,533.186 million, while the provision for bad debts increased from ¥646.920 million to ¥875.429 million, increasing exposure relating to collections and non-collections after payments made on behalf of customers. - FY2023-Q2WorsenedAnnual report
「Current assets amounted to ¥6,099.796 million, an increase of ¥789.444 million from the end of the previous fiscal year. This was mainly due to claims paid on behalf of customers increasing by ¥310.930 million and cash and deposits increasing by ¥605.605 million, while accounts receivable decreased by ¥55.006 million and the provision for bad debts increased by ¥117.524 million.」
Claims paid on behalf of customers increased from ¥2,011.105 million at the end of the previous fiscal year to ¥2,322.035 million, while the provision for bad debts increased from ¥646.920 million to ¥764.445 million. Exposure relating to collections and non-collections after payments made on behalf of customers has increased. - FY2023-Q1WorsenedAnnual report
「This was mainly due to claims paid on behalf of customers increasing by ¥188.789 million and cash and deposits increasing by ¥160.107 million, while accounts receivable decreased by ¥41.654 million and the provision for bad debts increased by ¥83.191 million.」
Claims paid on behalf of customers increased from ¥2,011.105 million at the end of March 2022 to ¥2,199.894 million, and the provision for bad debts increased from ¥646.920 million to ¥730.112 million, increasing exposure relating to collections and non-collections after payments made on behalf of customers. - FY2022WorsenedAnnual report
「If claims paid on behalf of customers increase due to a significant deterioration in the economic environment or other factors, and provisions for bad debts and guarantee claims are recognized in excess of expectations, this could affect the company's results and financial position. As of the end of March 2022, claims paid on behalf of customers amounted to ¥2,011.105 million, representing 31.8% of total assets. In addition, to provide for losses arising when receivables become uncollectible and losses resulting from future guarantee claims, the company recognizes provisions for bad debts and guarantee claims based on past collection performance and other factors, making the necessary accounting provisions. As of the end of March 2022, the provision for bad debts was ¥646.920 million and the provision for guarantee claims was ¥111.696 million.」
Claims paid on behalf of customers amounted to ¥2,011.105 million, or 31.8% of total assets, up from ¥1,537.090 million and 27.7% at the end of the previous fiscal year. The company also disclosed a provision for bad debts of ¥646.920 million and a provision for guarantee claims of ¥111.696 million, indicating increased credit-risk exposure on a numerical basis. - FY2022-Q3WorsenedAnnual report
「This was mainly due to claims paid on behalf of customers increasing by ¥388.484 million and other current assets increasing by ¥71.347 million, while cash and deposits decreased by ¥61.745 million, accounts receivable and contract assets (accounts receivable at the end of the previous fiscal year) decreased by ¥50.392 million, and the provision for bad debts increased by ¥130.623 million.」
Claims paid on behalf of customers increased by ¥388.484 million from the end of the previous fiscal year to ¥1,925.575 million, while the provision for bad debts increased by ¥130.623 million to ¥658.420 million. Exposure relating to collections and non-collections after payments made on behalf of customers has increased. - FY2022-Q2WorsenedAnnual report
「This was mainly due to cash and deposits increasing by ¥115.105 million, claims paid on behalf of customers increasing by ¥205.344 million, and other current assets increasing by ¥88.236 million, while accounts receivable and contract assets (accounts receivable at the end of the previous fiscal year) decreased by ¥36.082 million and the provision for bad debts increased by ¥58.753 million.」
Claims paid on behalf of customers increased from ¥1,537.090 million at the end of the previous fiscal year to ¥1,742.435 million. The provision for bad debts also increased from ¥527.797 million to ¥586.550 million, and exposure relating to collections and non-collections after payments made on behalf of customers has increased. - FY2022-Q1WorsenedAnnual report
「This was mainly due to claims paid on behalf of customers increasing by ¥129.711 million and other current assets increasing by ¥71.184 million, while cash and deposits decreased by ¥58.714 million, accounts receivable and contract assets (accounts receivable at the end of the previous fiscal year) decreased by ¥44.518 million, and the provision for bad debts increased by ¥67.037 million.」
Claims paid on behalf of customers increased by ¥129.711 million from the end of the previous fiscal year to ¥1,666.802 million, while the provision for bad debts increased by ¥67.037 million to ¥594.834 million. The numerical exposure relating to collections and non-collections after payments made on behalf of customers has increased. - FY2021WorsenedAnnual report
「If claims paid on behalf of customers increase due to a significant deterioration in the economic environment or other factors, and provisions for bad debts and guarantee claims are recognized in excess of expectations, this could affect the company's results and financial position. As of the end of March 2021, claims paid on behalf of customers amounted to ¥1,537.090 million, representing 27.7% of total assets. In addition, to provide for losses arising when receivables become uncollectible and losses resulting from future guarantee claims, the company recognizes provisions for bad debts and guarantee claims based on past collection performance and other factors, making the necessary accounting provisions. As of the end of March 2021, the provision for bad debts was ¥527.797 million and the provision for guarantee claims was ¥102.263 million.」
Claims paid on behalf of customers increased from ¥1,059.851 million at the end of the previous fiscal year to ¥1,537.090 million, representing 27.7% of total assets. The company also disclosed a provision for bad debts of ¥527.797 million and a provision for guarantee claims of ¥102.263 million, indicating increased credit-risk exposure. - FY2021-Q3WorsenedAnnual report
「This was mainly due to cash and deposits decreasing by ¥193.000 million and accounts receivable decreasing by ¥37.791 million, while claims paid on behalf of customers increased by ¥329.654 million.」
Claims paid on behalf of customers increased from ¥1,059.851 million at the end of the previous fiscal year to ¥1,389.506 million, and the provision for bad debts increased from ¥464.944 million to ¥522.300 million. The numerical exposure relating to collections and non-collections after payments made on behalf of customers has increased. - FY2021-Q2WorsenedAnnual report
「This was mainly due to cash and deposits decreasing by ¥100.032 million and accounts receivable decreasing by ¥35.428 million, while claims paid on behalf of customers increased by ¥167.344 million.」
Claims paid on behalf of customers increased from ¥1,059.851 million at the end of the previous fiscal year to ¥1,227.195 million, and the provision for bad debts increased from ¥464.944 million to ¥482.635 million. The company explains that delinquency rates and collection rates remained within expectations and bad debt expenses were contained. - FY2021-Q1Disclosed increases in claims paid on behalf of customers and the provision for bad debts, while maintaining the estimation assumptionsAnnual report
「This was mainly due to claims paid on behalf of customers increasing by ¥110.908 million, while cash and deposits decreased by ¥216.170 million, accounts receivable decreased by ¥37.022 million, and the provision for bad debts increased by ¥27.269 million. In estimating the provision for bad debts and the provision for guarantee claims in light of the impact of the spread of COVID-19, the company considered the occurrence and collection status of delinquencies up to the date the financial statements were prepared, and states that there were no material changes from the assumptions at the end of the previous fiscal year.」
Claims paid on behalf of customers increased from ¥1,059.851 million at the end of the previous fiscal year to ¥1,170.759 million, while the provision for bad debts increased from ¥464.944 million to ¥492.214 million. The company explains that there were no material changes to the assumptions used to estimate provisions in light of the impact of COVID-19. - FY2020Quantified balances of claims paid on behalf of customers and provisionsAnnual report
「If claims paid on behalf of customers increase due to a significant deterioration in the economic environment or other factors, and provisions for bad debts and guarantee claims are recognized in excess of expectations, this could affect the company's results and financial position. As of the end of March 2020, claims paid on behalf of customers amounted to ¥1,059.851 million, representing 22.4% of total assets.」
The company disclosed claims paid on behalf of customers of ¥1,059.851 million, representing 22.4% of total assets, a provision for bad debts of ¥464.944 million, and a provision for guarantee claims of ¥85.592 million in connection with credit risk. - FY2020-Q3RestatedAnnual report
「During the cumulative third quarter, there were no occurrences of matters relating to the business and financial conditions described in this quarterly report that could materially affect investors' decisions, nor any material changes to the "Business and Other Risks" described in the securities report for the previous fiscal year (filed on 24 June 2019).」
The company states that there have been no material changes to the risk of failing to collect claims paid on behalf of customers. - FY2020-Q2RestatedAnnual report
「During the cumulative second quarter, there were no occurrences of matters relating to the business and financial conditions described in this quarterly report that could materially affect investors' decisions, nor any material changes to the "Business and Other Risks" described in the securities report for the previous fiscal year (filed on 24 June 2019).」
The company states that there have been no material changes to the risk of failing to collect claims paid on behalf of customers. - FY2020-Q1RestatedAnnual report
「During the first quarter cumulative period, there were no material changes in the occurrence of matters among those relating to the business and accounting conditions described in this quarterly report that could materially affect investors' decisions, or in the business and other risks described in the securities report for the previous fiscal year (filed on 24 June 2019).」
The company states that there have been no material changes to the risk of failing to collect claims paid on behalf of customers. - FY2019Explicit recognition of provisions for bad debts and guarantee claimsAnnual report
「In addition, to provide for losses arising when receivables become uncollectible and losses resulting from future guarantee claims, we recognize provisions for bad debts and guarantee claims based on past collection performance and other factors, making the necessary accounting provisions.」
In addition to pre-contract screening and prompt collection efforts, the company explicitly describes recognizing provisions for losses from non-collection and future guarantee claims. - FY2019-Q3Increased provisions for bad debts and guarantee claimsAnnual report
「Although personnel expenses and other costs increased in line with an aggressive increase in staffing, and provisions for bad debts and guarantee claims also increased, the resulting increase in profit from higher sales and other factors,」
Increases in provisions for bad debts and guarantee claims were explicitly identified in the results analysis. The text indicates an increase in provisions, but does not state that individual non-collections occurred. - FY2019-Q2RestatedAnnual report
「During the cumulative second quarter, there were no occurrences of matters relating to the business and financial conditions described in this quarterly report that could materially affect investors' decisions, nor any material changes to the "Business and Other Risks" described in the securities report for the previous fiscal year (filed on 25 June 2018).」
The company states that there have been no material changes to the risk of failing to collect claims paid on behalf of customers. - FY2019-Q1RestatedAnnual report
「During the three months ended the first quarter, there were no occurrences of matters relating to the business or financial condition described in this quarterly report that could materially affect investors' decisions, and no material changes to the “Business and Other Risks” described in the securities report for the previous fiscal year filed on 25 June 2018.」
The company states that there have been no material changes to the risk of failing to collect claims paid on behalf of customers. - FY2018MitigatedAnnual report
「We screen applicants before entering into guarantee entrustment agreements to prevent claims paid on behalf of customers from arising in excess of expectations. In conducting these screenings, we have established guarantee screening rules and seek to ensure appropriate screening by using our proprietary screening system for guarantee products involving payment on behalf of customers, and by working with major consumer finance companies for products that include a rent-payment credit service. For claims paid on behalf of customers that have arisen, we seek to restore them to performing status and reduce their balances through appropriate and prompt collection efforts based on the status of delinquent cases.」
Although the risk of non-collection remains, specific measures have been described, including pre-contract screening, collaboration with consumer finance companies, and restoring and reducing receivables through prompt collection efforts. - FY2018-Q3RestatedAnnual report
「During the nine months ended the third quarter, there were no occurrences of matters relating to the business or financial condition described in this quarterly report that could materially affect investors' decisions, and no material changes to the “Business and Other Risks” described in the securities report for the previous fiscal year filed on 23 June 2017.」
The company states that there have been no material changes to the existing business and other risks relating to the risk of failing to collect claims paid on behalf of customers. - FY2018-Q2RestatedAnnual report
「During the second quarter cumulative period, there were no material changes in the occurrence of matters among those relating to the business and accounting conditions described in this quarterly report that could materially affect investors' decisions, or in the business and other risks described in the securities report for the previous fiscal year (filed on 23 June 2017).」
The company states that there have been no material changes to the existing business and other risks relating to the risk of failing to collect claims paid on behalf of customers. - FY2017First statedAnnual report
「Our guarantee services involve making payments under guarantee when a guarantee principal defaults on its obligations. Due to the nature of these services, some of the receivables advanced through such payments may remain uncollected.」
The company describes as a credit risk the payment of claims on behalf of guarantee customers following their default, and the subsequent possibility of failing to collect the resulting receivables.