Repayment assistance won’t affect credit record

AS business owners adjust to the end of the automatic blanket moratorium on loan repayments, they might face cashflow problems as repayments resume. They should look at improving their finances by reassessing the business’s financial health and exploring the assistance available to them.

According to a recent survey by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), approximately 50% of our members have benefited from the payment deferment under the blanket moratorium. While 69.2% of small and medium enterprises (SMEs) require repayment assistance now that the moratorium has ended, only 55.6% have reached out to their banks to explore options.

Banks continue to provide various targeted repayment options to provide some relief, such as reducing monthly commitments, extending repayment schedules, as well as changing financing terms.

It is important to note that accepting targeted repayment assistance will not be reflected in the Central Credit Reference Information System (CCRIS) record or affect eligibility for future applications for financing. Business owners facing difficulties due to the end of the moratorium should contact their banks immediately to explore the options available. It is a simple and straightforward process, with a high approval rate of over 90%.

KOONG LIN LOONG Chairman, SMEs Committee, Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM)