Revising guarantee limits, rates and products in response to the pandemic environment

「In this environment, the credit risk guarantee service continued to perform steadily. Although sales activities were restricted by the declarations of the third and fourth states of emergency and the extension of the fourth declaration, new contracts increased because we provided products in a timely manner in response to growing customer needs resulting from the impact of COVID-19 and other factors. In addition, we began providing the DX-based deferred-payment services eG Collect and eG Pay, which enable corporate customers to outsource to our Group the administrative work involved in deferred payments, invoice issuance, payment management and collection.」

「Although sales activities were restricted by the declarations of the third and fourth states of emergency and the extension of the fourth declaration, new contracts increased because we provided products in a timely manner in response to growing customer needs resulting from the impact of COVID-19 and other factors. In addition, through collaboration with a fintech company, we began providing eG Advance Payment as a new service, enabling employees and subcontractors to receive payment at any time for work performed without waiting until the scheduled payment date for wages or other amounts.」

「In this environment, the credit risk guarantee service continued to perform steadily. Although sales activities were restricted by the declaration of the fourth state of emergency, new contracts increased because we provided products in a timely manner in response to growing customer needs resulting from the impact of COVID-19 and other factors. In addition, in light of the future economic impact of COVID-19, we underwrote risks by industry, including continuing to make cautious risk assessments for certain industries.」

「For existing contracts, in light of the possibility that the number of bankruptcies could increase in the future due to the impact of COVID-19, we reviewed contract terms in advance and sought to diversify risk and rebuild the portfolio by restricting the underwriting of high-value risks.」

「In this environment, the credit risk guarantee service continued to perform steadily. New contracts increased because we developed and provided new products in a timely manner in response to growing customer needs resulting from the impact of COVID-19 and other factors. For existing contracts, in light of the possibility that the number of bankruptcies could increase in the future due to the impact of COVID-19, we reviewed contract terms in advance and sought to diversify risk and rebuild the portfolio by restricting the underwriting of high-value risks. For guarantee counterparties whose coverage we continued to underwrite, we also reflected the results of the risk review in guarantee rates, resulting in higher rates and increased guarantee fees.」

「In this environment, the credit risk guarantee service continued to perform steadily. As sales activities were restricted by the state of emergency, new contracts increased because we developed and provided new products in a timely manner in response to growing customer needs. For existing contracts, in preparation for a future increase in the number of bankruptcies due to the impact of COVID-19, we reviewed contract terms in advance and sought to diversify risk and rebuild the portfolio by restricting the underwriting of high-value risks. For guarantee counterparties whose coverage we continued to underwrite, we also reflected the results of the risk review in guarantee rates, resulting in higher rates and increased guarantee fees.」

「In this environment, our Group reviewed the risk assessments of each guarantee counterparty in consideration of the future impact of COVID-19 on the economy. As a result of raising guarantee rates for new customers, guarantee fees under new contracts increased. For existing customers, we set guarantee rates reflecting the revised risk assessments, also reviewed their guarantee limits, and reset the limits at amounts reflecting those assessments.」

「In this environment, our Group is reviewing the risk assessments of each guarantee counterparty in consideration of the future impact of COVID-19 on the economy and, while resetting guarantee limits, will also reflect the results of the revised risk assessments in the guarantee rates presented to customers. In addition, we will develop products suited to changes in the environment caused by COVID-19 and provide services in a timely manner at prices commensurate with risk, thereby promoting the use of guarantee services in our corporate activities as part of our role as economic infrastructure.」