the-other-side-of-zentoshin-s-collapse-the-unregulated-factoring-that-propped-up-restaurants
# factoring# Zentoshin# SME financing# cash flow
Key Points
- ITmedia examines the factoring behind Zentoshin's bankruptcy that restaurants relied on
- Factoring turns receivables into instant cash but lacks clear regulation
- It exposes a gray zone and risk in SME financing
Analysis
Following Zentoshin's bankruptcy, ITmedia examines an underappreciated player: factoring. This financing, which lets small restaurants turn future receivables into immediate cash, propped up many when bank loans were hard to get, yet sits in a regulatory gray zone, high-cost and lightly governed, a lifeline in good times and a drag in bad. For SMEs, restaurants and finance folks, the reminder: non-traditional funding tools are fresh water used right and a trap used wrong, so weigh costs and rules first.