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Banks help those who help themselves

IT’S not true that all banks are heartless. There are those that give due consideration to the plight of their customers, especially borrowers.

They may be big financial institutions in their own right, but they have policies to adhere to. While these policies may appear strict, they aren’t carved in stone.

There are many occasions when human considerations take precedence over these policies at no loss to the banks or their borrowers. I saw with my own eyes how they stretch the ringgit and their policies to help those in need.

A case in point is the Batu Burok Beach Resort in Kuala Terengganu, which went through some bad times and found itself in dire straits. Managed and owned by national-level athletes who had served king and country, the resort owner faced financial disaster when the business was affected by internal and external factors.

At a closed-door meeting last week, the resort owner met senior executives from the bank to thrash out their problems. I was fortunate to have sat in on the meeting to see firsthand how both parties would come to an understanding on how the business could continue.

Two weeks ago in this column, I had written about the resort that was on the brink of closure for failing to meet its loan requirements. A receiver was put in place by the bank to help in the recovery process, which was a major worry for the resort and its employees.

A recovery plan is now being hatched which would allow the resort owners to repay their loan and continue their business. With Ramadan just round the corner, much business could come in the way of break fast specials.

The recovery plan will also allow the bank to get their loan back at a reasonable amount to be agreed to by the resort owners and the bank. Credit must be given to both parties that appeared to have seen the light at the end of the tunnel.

It is a continuous learning curve for the resort owners. They must improve their business operations and give proper attention to the financial side of it all. It is not uncommon for small- and medium-scale entrepreneurs to falter as their businesses grow. Maintaining proper financial records would help them go further.

Business owners must always be reminded that nothing remains stagnant. They must also realise that no one owes them a living. But they have employees who depend on an efficient and profitable running of their establishments.

Good luck Batu Burok Beach Resort! May you enjoy all the success you deserve!

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