Financial Guide for SMEs - SME Corporation Malaysia

Financial Guide for SMEsManaging DifficultiesBank loans usually have conditions of default,with the bank being able to demand paymentif one or more conditions are breached. Also,overdrafts are at call, with the bank being ableto ask for repayment on demand.Before a bank decides to call in a loan, therewould normally have been discussion or aletter expressing its concerns. If the bankdecides not to allow continuous default orescalation in borrowings, it must provideHINTIf your business is havingproblems such as difficultyin keeping up withrepayments, discuss themwith the bankimmediately so that theycan work with you to finda solutionwritten advice that banking facilities have been withdrawn, in which case it willask that all monies be repaid immediately.It is in your best interest to contact the bank immediately if your business isfacing difficulties, as there may be several ways that the bank can help you.They may:• Agree to change your borrowing arrangements to facilitate repayment;• Discuss with you, and if you wish, your accountant or advisers, the plans forimproving cash fl ow and profi ts; or• Recommend that you discuss the problem with your accountant or get in touchwith independent advisers, who can help you and possibly assist with yourbusiness problems. If there is no mutual agreement, then refer to BNMLINK(Bank Negara Malaysia Laman Informasi Nasihat dan Khidmat) atwww.bnm.gov.my/bnmlink.TIPBank managers are more ready to provide any assistance required, suchas a negotiation of repayments, if they are told about a deterioratingposition rather than having to fi nd out about it themselves155chapter 7-13 p79-181 Eng.indd 1558/16/11 1:09:49 PM