Maravi

(HERALD) Banks giving businesses a raw deal

Banks giving businesses a raw deal

EDITOR — I shudder to think that 30 years after independence the country has nothing to do with established and formal business operations. One might wonder what I am up to. In simpler terms, there is no support for formal businesses to enable them to grow.

This is evidenced by the way these businesses are choked and fail to get the necessary support from our own financial institutions. Yes, I agree money cannot be thrown around without some form of security. But in most cases, these businesses have been in operation since the ’80s or before.

They have proven or traceable track records regarding their operations. They have been doing daily banking with the same financial institutions. The owners of these companies are known figures in the community. Their operations have been conducted from the same business addresses in the same areas.

The businesses are known to be viable and profitable, given a new lease of life. And, most importantly, they hold title deeds of known properties, some of them worth hundreds of thousands of US dollars.

Notwithstanding the above impressive and explicit credentials, these organisations are denied access to bank loans to ease their cash flow or working capital problems.

Surprisingly, financial institutions demand business from these choked or strained businesses before offering loans.

One major area that must be looked into very seriously is the processing and approval of loans.

For example, I operate from Bindura. I have been doing business with the same local bank. I am known to be a client who deserves a bailout.

Unfortunately, someone who does not know the clients makes decisions in Harare.

This is a betrayal of our loyalty.

In view of the above, genuine businesspersons are being deprived of a service and thus encouraging or condoning corruption.

Now is the time for account holders and formal business operators to be saved — financially.

Resuscitate our businesses!

T. J. Zvapano.
Bindura.

Labels: BANKING, LENDING RATES

posted by MrK @ 4:45 AM