Yamato Credit Finance Partners with Moneytree to Digitize SME Factoring
Yamato Credit Finance, the financial subsidiary of the Yamato Transport group, has adopted the "Moneytree Verify" solution for its two-party factoring services. The integration marks a significant shift in the non-bank lending sector, moving away from static, paper-based credit assessments toward real-time, data-driven monitoring.
Driving Digital Transformation in SME Lending
The partnership addresses a critical liquidity gap in the Japanese market. With the capital adequacy ratio of Small and Medium Enterprises (SMEs) averaging a low 19.6%, the Ministry of Economy, Trade and Industry (METI) has been actively promoting the utilization of accounts receivable as an alternative to traditional real estate-backed collateral.
However, the factoring industry has long struggled with operational inefficiencies. Traditional vetting processes relied heavily on the submission of physical passbook copies, a method fraught with risks regarding data falsification, human error, and prolonged processing times. Furthermore, following the Financial Services Agency’s tightened anti-money laundering (AML) guidelines introduced in April 2024, lenders have faced increased pressure to establish robust digital verification workflows.
Operational Impact: From Snapshot to Continuous Monitoring
By integrating "Moneytree Verify," Yamato Credit Finance replaces manual document submission with direct, consent-based API connectivity to applicants' bank accounts. This shift offers three primary advantages:
- Enhanced Credibility & Fraud Prevention: Direct data acquisition eliminates the risk of forged financial documents, ensuring high-fidelity input for credit models.
- Accelerated Underwriting: Real-time access to income and expenditure data significantly shortens the review cycle, allowing for faster funding decisions—crucial for SMEs requiring immediate working capital.
- Post-Funding Risk Management: Unlike traditional one-off credit checks, the system enables continuous monitoring of a borrower's cash flow after the transaction begins. This allows Yamato Credit Finance to detect changes in a client's management environment early and adjust credit management strategies accordingly.
Service Scope
Yamato Credit Finance currently offers its two-party factoring service to corporate clients utilizing Yamato Transport’s credit payment contracts (deferred payment/invoice payment). The service promises funding liquidity in approximately 3 to 5 days with a transparent fee structure capped at 10%.
This collaboration highlights a broader trend of "Credit DX" (Digital Transformation) within the logistics and finance sectors, as legacy institutions leverage fintech infrastructure to streamline operations and mitigate risk in an increasingly regulated environment.
Norbert Gehrke
