Business Credit Cards, Capital as Reputation, and Bankruptcy Risk Context

International-transaction fees on Japanese banks' business credit cards (for example, SMBC) are considered high and inconvenient, and their built-in 'loyalty programs' (purchase lotteries) are assessed as economically unfavorable — by one calculation, winning 1 yen on average requires roughly 6.1 million yen in card spending; when choosing a business credit card it is worth comparing actual international transaction fees carefully rather than relying on loyalty-program marketing. Only 8.7% of companies in Japan have share capital of 30 million yen or more, while 91.3% have less — this does not mean the rest lack funds, simply that there is little point inflating capital without a specific need (such as a visa requirement). Share capital often matters less as 'cash on hand' than as a reputational signal for obtaining corporate credit and earning the trust of partners and clients; this is especially relevant, for example, in the security industry, where capital size is read as an indicator of a company's reliability. Rising bankruptcy statistics provide useful context for credit risk in the wider economy: in the first half of Japan's 2025 fiscal year (from April 1), 5,172 bankruptcies were recorded, the highest since 2013, hitting small businesses with capitalization under 10 million yen hardest; from January to June 2026, 5,335 companies with debts of 10 million yen or more went bankrupt, 332 more than the year before and the highest since 2012 (Teikoku Databank data). Illustrating this risk, a major factoring company that advanced funds to restaurants and other services against expected credit-card receivables collapsed after falsified financial reports going back 20 years came to light; restaurants and shops in the Kansai region lost a month's revenue, and five regional banks, including Towa Bank and The San Ju San Financial Group, were forced to write off losses — a case that highlights the risks of receivables-factoring arrangements and regional banks' exposure to such partners. Source: https://www3.nhk.or.jp/nhkworld/en/news/20260709_B2/ — NHK World news report on the factoring company bankruptcy and its impact on regional banks.