BUSINESS

SMES URGED TO COME FORWARD TO DISCUSS FINANCING REPAYMENTS WITH BANKS

19/08/2020 04:26 PM

KUALA LUMPUR, Aug 19 -- Small and medium enterprises (SMEs) in need of loan and financing repayment assistance are urged to quickly come forward to their respective banks to discuss their rescheduling or restructuring options ahead of the blanket moratorium ending on Sept 30, 2020.

Hong Leong Bank head of sales & business development, Andy Yeoh, said given the directives from Bank Negara Malaysia (BNM) to ensure assistance continues to be provided to borrowers affected by COVID-19, banks are ready and committed to helping their SME customers through various financial relief options to suit each SME.

"The options could be servicing only interest rates or stepping up repayment or doing a conversion. We understand that it is going to be an individual case and there is no one plan that will suit all.

"If the SME's cash flow or bank statements are not available for the past six months, and they are not sure how to go about their business projections and continue their business moving forward, we can provide guidance and help find the best solutions to suit the SME's business," he said in the 'Webinar for SMEs-Loan/Financing Repayment Assistance' today.

The webinar was organised by the National Chamber of Commerce and Industry of Malaysia (NCCIM).

Meanwhile, Maybank head of SME banking, Adnan Sharif, said on the assumption that their bank statements will show a drop of 80 to 90 per cent, SMEs can always provide other income statements such as rental or property income, director's income statements, fixed deposits or any form of income or investments, to prove their ability to service and sustain the repayments in the future.

"Apart from that, the SMEs also need to be transparent about other financial commitments, whether with creditors, suppliers etc, so that banks can see how to restructure their respective financing commitments," Adnan said.

Another panellist, SME Bank head of asset quality management Abdul Karim Ahmad, said banks will not be blacklisting SMEs as BNM has given a direction to banks that any rescheduling and restructuring (R&R) of  loans will not be tagged or appear in the borrower’s Central Credit Reference Information System (CCRIS) reports.

RHB Islamic Bank head of SME banking, Yip How Nang, added that besides providing financial relief, banks are also willing to assist SMEs to apply for other aid such as the government's PENJANA SME Financing and PENJANA Tourism Financing.   

On July 29, Prime Minister Tan Sri Muhyiddin Yassin announced measures to provide a targeted extension of the loan moratorium and repayment flexibility to assist individual and SME borrowers, who will need to apply directly to their respective banks from Aug 7, 2020. 

-- BERNAMA


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