Cash management Services
We’ve seen not a few foreign clients fell behind with payments such as supplier bills, taxes, social insurance premiums etc., which lost trust from Japanese banks, tax authorities and suppliers etc. In Japanese business practices, we’d say that “trust” is a key for maintaining good relationships with these third parties and they can’t survive without it. We’ve seen a lot of clients which lost their trust and couldn’t receive any financial aid even during COVID-19 pandemic.
We’d say that, in fact, it’s not easy for foreign clients to do cash management outside of Japan.
We provide a cost-efficient cash management service such as opening bank accounts under their name, making payments in a timely manner, helping clients communicate to suppliers so the payment process could be streamlined, and assisting them with structuring the best banking management practices including utilizing an online banking system from outside of Japan if they really want to.
Complexity and difficulty in dealing with Japanese banks.
For many foreign clients, dealing with Japanese banks is challenging because sadly their customer support is only available in Japanese, and without a local director who can constantly communicate with Japanese bank staff in Japanese and stay in Japan throughout the year, it is very hard to maintain trust from Japanese banks.
In addition, the Japanese banking system has many unique customs that annoy foreign customers. For example, once transaction issues happen, “local directors” need to visit the branch office of their bank in person. Japanese bank seals and bankbooks play important roles in banking transactions, so if they would like to withdraw money and make payments from their bank accounts, they need to bring 1) a corporate seal and 2) a bankbook to their bank branch, so the bank tellers can process with them.
We have seen many Japanese subsidiaries of international companies have difficulty opening bank accounts because banks often value the reputation of companies and have changed the standards for opening bank accounts to prevent money laundering. In such cases, hiring a nominee director could be the best choice to efficiently open their bank accounts and establish their businesses without wasting any time and opportunities, although there are very few candidates who accept that kind of position.
For more details about our nominee director service, please click here!
Our Cash Management services, such as:
–Start-up support services:
Assistance with preparation of cash disbursement policies
Ordering bank seal
Opening of bank account(s) under your company’s name.
–Cash management On-going services:
Development of efficient payment process
Payment of various third party vendor invoices, salaries, payroll, employees’ reimbursement and taxes.
Monitor and reporting of accounts receivable
Preparation of funding requests for upcoming expenditures
Monitor of your bank balance and preparation of forecasts on your cash flow
Preparation of bank account statement
Custody of bank seal and bankbook(s)
Interfacing with the bank, including online banking.
If you would like to discuss more, please feel free to contact from below!