Credit Risk to Merchants and Purchasers
First written in FY2022-Q3. 12 of 16 entries say "Materialised", first in FY2023-Q1. Latest entry: 2026-08-18.
Net Protections Holdings moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2022: 6 of 17 companies on the "Worse" side.
5 other companies' latest entry also says "Mitigated".
- FY2026MaterialisedAnnual report
「For the current consolidated fiscal year, the balance of the allowance for doubtful accounts against trade receivables at fiscal year-end was ¥6,771 million.」
Credit risk relating to merchants, purchasers, and lending service customers materialized as an allowance for doubtful accounts of ¥6,771 million against trade receivables and an allowance of ¥79 million against operating loans. - FY2026-H1MaterialisedAnnual report
「Receivables arising from contracts with customers Accounts receivable 419 526 Other receivables 39,004 45,433 Allowance for doubtful accounts △6,613 △7,310 Total 32,810 38,650」
The allowance for doubtful accounts against trade receivables increased from ¥6,613 million at the previous fiscal year-end to ¥7,310 million, continuing to demonstrate the materialization of credit risk relating to merchants, purchasers, and lending service customers in the balances. - FY2025MaterialisedAnnual report
「Credit risk is the risk of financial loss arising from a counterparty's failure to perform its contractual obligations or for other reasons, and primarily consists of risk relating to merchants or purchasers using BNPL payment services and customers of the lending service.」
The scope of credit risk expanded from merchants and purchasers to include lending service customers. The allowance for doubtful accounts against trade receivables was ¥6,613 million, and an allowance of ¥1 million was also recognized against operating loans. - FY2025-H1MaterialisedAnnual report
「The deterioration in the business environment surrounding small and micro businesses, the main end users of NP掛け払い, caused the rate of payment delays to rise and bad-debt-related costs to increase year on year.」
Against a backdrop of a deteriorating business environment for small and micro businesses, the higher rate of payment delays and increased bad-debt-related costs in the B2B service continued during the current interim consolidated accounting period. Meanwhile, the company explained that recent collection performance was improving. - FY2024-Q3MaterialisedAnnual report
「The business environment surrounding small and micro businesses, the main end users of NP掛け払い, deteriorated, causing the rate of payment delays to rise and bad-debt-related costs to increase. The company is seeking to contain these costs by fine-tuning its credit assessments and revising its collection procedures.」
Deterioration in the business environment surrounding small and micro businesses led to a higher rate of payment delays and increased bad-debt-related costs in the B2B service. The balance of the allowance for doubtful accounts against trade receivables stood at ¥6,355 million at period-end. Meanwhile, the company also reported lower bad-debt-related costs in the B2C service_NP後払い and other services due to improved receivables collection. - FY2024-Q2MaterialisedAnnual report
「The rate of payment delays increased, affecting the calculation of the allowance for doubtful accounts and increasing bad-debt-related costs. The company is seeking to contain these costs by fine-tuning its credit assessments and revising its collection procedures.」
In the B2B service, the higher rate of payment delays led to increased bad-debt-related costs. The balance of the allowance for doubtful accounts against trade receivables stood at ¥6,179 million at period-end. - FY2024-Q1MaterialisedAnnual report
「After several customers reported that they did not recall entering into sales contracts with the relevant business partner, an investigation found that the transferred receivables included transactions that did not satisfy the requirements for provision of this service.」
The company found that the transferred receivables of a particular merchant included transactions that did not meet the service requirements, leading to the suspension of customer billing, requests for repurchase of receivables, and recognition of an allowance for doubtful accounts. - FY2023-Q3MaterialisedAnnual report
「Receivables arising from contracts with customers Accounts receivable 17 19 Other receivables 27,017 32,636 Allowance for doubtful accounts △5,015 △5,336 Total 22,019 27,319」
The allowance for doubtful accounts against trade receivables and similar assets increased from ¥5,015 million at the previous fiscal year-end to ¥5,336 million, demonstrating the materialization of credit risk relating to merchants and purchasers in the balance of bad-debt-related allowances. - FY2023-Q2MaterialisedAnnual report
「In the B2B service, the allowance for doubtful accounts was increased in response to changes in the collection status of receivables being collected.」
The allowance for doubtful accounts was increased in the B2B service, and the balance of the allowance for doubtful accounts against trade receivables stood at ¥5,223 million at the end of the period. Credit risk materialized as bad-debt-related costs and a decline in gross profit. - FY2023-Q1MaterialisedAnnual report
「In the B2C service, the allowance for doubtful accounts was increased in response to changes in the collection status of receivables being collected.」
The allowance for doubtful accounts was increased in response to changes in collection status. The provision for doubtful accounts changed from a ¥124 million reversal in the same quarter of the previous year to a ¥72 million expense in the current quarter. Credit risk materialized as bad-debt-related costs and a decline in gross profit. - FY2022RestatedAnnual report
「Credit risk is the risk of financial loss arising from a counterparty's failure to perform its contractual obligations or for other reasons, and primarily consists of risk relating to the group's merchants and purchasers.」
The company continues to disclose credit risk arising from defaults and other issues involving merchants and purchasers as a major ongoing risk. - FY2022-Q3First statedAnnual report
「The group is exposed to credit risk relating to trade and other receivables. Credit risk is the risk of financial loss arising from a counterparty's failure to perform its contractual obligations or for other reasons, and primarily consists of risk relating to the group's merchants and purchasers.」
The company identified credit risk arising from defaults and other issues involving merchants and purchasers, and also disclosed its record of recognizing bad debt losses and allowances for doubtful accounts.