The previous moratorium by banks have assisted many both individuals and businesses alike. Although it was a payment deferment, the moratorium provided a sigh of relief especially for Micro, Small & Medium Enterprises (MSME). This enabled them to carefully revisit their cost structure and further review their cash flow position.
During these turbulent and tumultuous times, it is crucial that both parties on the supply and demand (selling and purchasing) end work hand in hand to facilitate and assist one another.
Offering an extension line of credit by deferring and prolonging payment to one’s best ability and capacity is vital for a much needed second sigh of relief. Speak to your creditors, explain your situation. You’d be surprised on how most are always empathetic especially during this existing pandemic.
Another possibility is renegotiating payment terms. Discuss with your supplier for a split or further division of payment. When cash flow permits, ensure payment is made and always strive to meet the agreed obligation.
Indeed, it is neither a permanent nor a long-term solution however it enables businesses to cushion the blow from the drastic loss of income by the simple act of kindness and empathy.
In doing business, relationship and trust is essential. Hence, in this unpredictable economic climate, this serves as a reminder to bring back values in how businesses transact.
Photo: Japan Times