Profitable on Paper, Yet Short on Cash Why do Japanese manufacturers often report profits but struggle with cash flow? Long payment terms, Densai, and promissory notes can delay cash collection for 60 to 150 days, even after delivery and customer acceptance. A look at the key differences between Japanese and Western payment practices. Profit is an opinion. Cash is a fact.

Japan–Western Cultural Differences Ver13 “Western Bonus vs Japanese Bonus – part2” In the previous article (Ver12), I explained the structural differences between Western-style bonuses and Japanese bonuses. Here are several additional points summarized in a simple Q&A format.