This is a repayment simulation for procuring the entire 3 billion yen of self-construction costs through a bank loan "Interest rate 1.5% / 20-year repayment (equal principal and interest payment)," and a 10-year cash flow comparison with lease operations (1,800 tsubo, approx. 9 million yen monthly).
| Repayment Item | Amount (Approx.) | Remarks |
|---|---|---|
| Monthly Repayment Amount (Principal + Interest) | 14.48 Million Yen / Month | Of which principal is approx. 10.73M-12.28M yen, interest approx. 3.75M-2.20M yen |
| Annual Repayment Amount | 173.76 Million Yen / Year | For 12 months |
| 10-Year Cumulative Repayment | 1.7376 Billion Yen | At the 10-year mark (10 years remaining) |
| Total Interest Paid (20-Year Full Period) | 475.20 Million Yen | Total 20-year repayment: 3.4752 Billion Yen |
| Loan Balance at the end of the 10th Year | Approx. 1.618 Billion Yen | Approx. 46% of the principal (3 Billion Yen) has been repaid |
In the case of "Loan Repayment," the monthly payment amount is replaced by "principal and interest repayment," but fixed asset taxes and repair/maintenance costs for the land and building are added.
* Comparison conditions: For leasing, 1,800 tsubo × 5,000 yen/tsubo (Rent + CAM) = 9 Million Yen monthly (108 Million Yen annually)
| Cash Outflow / Cost Item | ① In-house Construction (3 Billion loan, 20-year repayment) | ② Leased Property (10-year use) | Difference / Remarks |
|---|---|---|---|
| Initial Own Funds (CAPEX / Security Deposit) | 0 Yen (Assuming full loan) | 0.12 Billion Yen | ② Security deposit 6 months (refundable) + Category C works |
| Monthly Fixed Payments (10-year cumulative) | 1.738 Billion Yen (Repayment amount) | 1.080 Billion Yen (Rent + CAM) | ① 14.48M yen/month × 120 months ② 9.00M yen/month × 120 months |
| Fixed Asset Tax / City Planning Tax (10 years) | Approx. 0.280 Billion Yen | 0 Yen | ① Public charges for land and building |
| Maintenance, Repair, Insurance Costs (10 years) | Approx. 0.150 Billion Yen | Approx. 0.060 Billion Yen | ① Exterior wall, roof, inspections, fire insurance, etc. |
| [Total Cash Out over 10 years] | 2.168 Billion Yen | 1.260 Billion Yen | Difference in cash outflow: ① is +0.908 Billion Yen more |
| Asset Value after 10 years (Real Estate Value) | 1.500 Billion Yen (Unrealized land value) | 0 Yen | ① Assuming land price is the same as when purchased |
| Liability Amount after 10 years (Remaining Loan) | ▲ 1.618 Billion Yen (Loan balance) | 0 Yen | ① Still has 10 years of repayment remaining |
| [Net Asset Impact after 10 years] | ▲ 0.118 Billion Yen | 0 Yen | Assets 1.5B - Liabilities 1.618B |
| [10-Year "Actual Burden Amount"] | 2.286 Billion Yen (Total outflow 2.168B + Net asset deficit 0.118B) |
1.260 Billion Yen | Actual burden including net asset movements |
・ Monthly cash outflow:
・ Conclusion: For the first 10 years, in-house construction (loan repayment) results in an extra cash outflow of about 9 million yen per month (over 100 million yen annually). If there is no margin in the cash flow for the main business, leasing offers higher safety.
・ Transformation in the 20th year (after loan is paid off):
It is more advantageous for business growth speed to choose "Leasing," where the cash outflow is over 900 million yen less in the first 10 years, and allocate the freed-up 100 million yen annually to "additional material handling equipment (automated facilities)," "expansion to other hubs," and "product development/hiring."
"In-house Construction (Financing)" emerges as the ultimate winner, as the annual fixed costs plummet significantly after the loan is paid off (from the 21st year onwards). This is a strategy for when there is sufficient capacity in cash on hand or bank credit lines.