I HAVE been approached by my good friend, a retiree, to raise working capital for his engineer son to start a business due to my close contacts with bankers.
His security collateral is a double storey bungalow with land valued at approximately RM2.5mil.
To his dismay, and my surprise, all banks, including those providing SME loans, would not lend because the business has not started. No track record, was their response
In the first place, how do you start a business if you have no working capital?
It is a chicken and egg situation.All the bankers refused to lend even with secured collateral
If this is the attitude of banks, it is little wonder why more borrowers have to find other means, including turning to loan sharks.
JY
Selangor
Already a subscriber? Log in
Get 20% OFF The Star Digital Access
Cancel anytime. Ad-free. Unlimited access with perks.
