Can Foreigners Get a Business Loan in Japan? A Step-by-Step Eligibility Check
Find out whether you can apply for a Japan Finance Corporation (JFC) startup loan, based on your visa, period of stay, savings, and credit record.
The short answer is yes. Foreign entrepreneurs regularly receive startup loans in Japan, mostly from the government-owned Japan Finance Corporation (JFC). JFC does not judge applicants by nationality.
But foreign founders face a few extra conditions that Japanese applicants do not, and your residence status is the first thing a loan officer will check. Work through the five checks below to see where you stand.
New to JFC loans? Read our JFC Startup Loan Guide first.
Related: JFC Startup Loan Document Checklist
Check 1: Does your residence status allow you to run a business?
To borrow for a business, you must be legally allowed to operate it. In practice, loan applications from the following residence statuses are the ones JFC typically considers:
| Residence status | Can you apply? | Notes |
|---|---|---|
| Permanent Resident (永住者) | Yes | Reviewed much like a Japanese applicant. Long repayment terms available. |
| Spouse or Child of Japanese National (日本人の配偶者等) | Yes | No restriction on business activities. |
| Spouse or Child of Permanent Resident (永住者の配偶者等) | Yes | No restriction on business activities. |
| Long-Term Resident (定住者) | Yes | No restriction on business activities. |
| Highly Skilled Professional (i)(c) / (ii) (高度専門職1号ハ・2号) | Yes | Business management categories. Type (ii) has no period-of-stay limit. |
| Business Manager (経営・管理) | Yes, with conditions | Your remaining period of stay affects the loan amount and repayment term (see Check 2). |
| Engineer / Specialist in Humanities / International Services (技術・人文知識・国際業務) and other work visas | Not yet | These visas do not allow you to run your own business. Change your status first. |
| Student, Dependent, Designated Activities (e.g. Startup Visa), Short-Term Stay | Generally no | Obtain a status that permits business management before applying. |
Key point: if you are currently on a work visa and planning to go independent, plan your visa change and your loan together. The order matters, and a mismatch can delay both.
Check 2: How long is your remaining period of stay?
Because JFC cannot assume your visa will be renewed, many practitioners report that the loan is expected, in principle, to be repaid within your current period of stay.
| Your situation | Impact on your loan |
|---|---|
| Permanent Resident / Highly Skilled Professional (ii) | No period-of-stay limit. Standard terms (up to 10 years for working capital, 20 years for equipment). |
| Spouse / Long-Term Resident, 3–5 year period | Generally workable. Renewal history helps. |
| Business Manager, 5 or 3 years remaining | Workable, though the term may be shorter than for Japanese applicants. |
| Business Manager, 1 year (typical for a first visa) | Short repayment period, which usually means a smaller loan. |
| Business Manager with several successful renewals | A track record of renewals and tax compliance can support a longer term. |
Tip: if you are about to renew your visa, it may be better to apply for your loan after renewal, when you have a longer period of stay remaining.
Check 3: Do you have your own funds, and can you prove where they came from?
JFC removed its formal own-funds requirement in 2024, but in practice this is still one of the most important factors in the review.
How much? Many advisers suggest aiming for own funds of around one-third of the amount you want to borrow. There is no fixed rule, but more own funds means a stronger application.
Borrowed money does not count. Funds borrowed from family, friends, or other lenders are not treated as your own funds for the loan review (even if they may count toward your company's capital).
Show the history. Bank statements covering the last 6–12 months should show you built the funds gradually.
Money from overseas: if your savings are in a bank outside Japan, keep records of the account history and the international transfer. Sudden large deposits without documentation are a common reason for rejection.
Check 4: Is your payment record clean?
Loan officers review your record of paying what you owe in Japan. Before applying, confirm that you have no unpaid:
- Income tax or residence tax (住民税)
- National Health Insurance or social insurance contributions
- National Pension contributions
- Credit card, loan, or phone installment payments (including smartphone device installments)
- Rent or utility bills
Late or missed payments, especially of taxes and social insurance, can also cause problems when renewing your visa. Fix them first.
Check 5: Can you present your plan in Japanese?
Documents: the business plan (創業計画書) and application must be submitted in Japanese.
Interview: the interview with the loan officer is generally conducted in Japanese. If your Japanese is limited, you should bring an interpreter, ideally one who understands financing.
Understanding matters more than fluency. The loan officer wants to see that you understand your own numbers: sales forecast, costs, and how you will repay.
Your Result
All five checks passed? You are in a good position to apply. The next step is a strong, well-evidenced business plan.
Status OK, but a short period of stay or limited own funds? You can still apply, but the amount and term may be limited. Timing (e.g. after visa renewal) and plan structure make a big difference. Get advice before applying.
Residence status not yet suitable, or unpaid taxes / bills? Don't apply yet. A rejection is recorded and makes reapplying harder. Fix these points first, and we can help you plan the order.
Special Note: New Business Manager Visa Rules (from October 16, 2025)
If you are applying for, or will soon renew, a Business Manager visa, note the stricter requirements now in force. These include ¥30 million in capital, at least one full-time employee, Japanese language ability, management experience or a relevant degree, and a business plan reviewed by a qualified professional such as an SME Management Consultant (中小企業診断士). Existing visa holders have a transition period until October 16, 2028.
Your visa application and your loan application now both rely on a credible business plan, so it makes sense to prepare them together. Always confirm your visa strategy with an immigration specialist (行政書士).
Not Sure Where You Stand? Get a Free Funding Readiness Check
HAKATAYA is led by a Japanese government-certified SME Management Consultant (Chusho Kigyo Shindanshi). In a free 30-minute consultation in English, we will:
- Review your residence status and period of stay
- Assess your own funds and how to document them
- Identify issues that could lead to rejection
- Recommend the best timing and funding route (JFC, guaranteed bank loan, or both)
Visa applications, tax filings, and company registration are handled by our licensed partner professionals.
FAQ
This page provides general information based on common practice and is not financial, legal, or immigration advice. JFC reviews each application individually, and the outcome depends on your circumstances. Confirm current requirements with the Japan Finance Corporation and the Immigration Services Agency of Japan. Information as of September 2026.
HAKATAYA acts as your English-speaking concierge in Japan, bridging foreign founders with trusted accounting and legal experts.