An article by Masanori Inoue, titled “The Impact of the Enforcement of the Act on Security Transfer Agreements and Title Retention Agreements on Lending Practices,” was published in the June 2025 issue of “Ginko Jitsumu.”

The government has enacted the “Act on Security Transfer Agreements and Title Retention Agreements” as a new financing option for small and medium-sized enterprises and startups that lack immovable assets, explicitly recognizing these agreements as legal forms of collateral. This article provides an overview of title-transfer security interests and discusses their impact on lending practices at financial institutions.

Banking Education Co., Ltd. / Ginko Jitsumu, June 2025 Issue