Banks have duty to bail out clients’ businesses

Dear Editor
I shudder to believe that 30 years after Independence, the country has nothing to do with established and formal business operations.
One may 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.
I agree money cannot be thrown around without some form of security but in most cases, these businesses have been in operation since the late 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 their locality.
Their operations have been conducted from the same business addresses on the same premises.
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 in their respective areas of operations, some of them worth hundreds of thousands of 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, instead, the financial institutions demand business from choked or strained businesses before offering loans.
One major area that must be looked into seriously is the processing and approving of loans.
For example, I operate from Bindura and have been doing business with my local branch.
I am known to be a client who deserves the bail-out.
Unfortunately, the decisions are made in Harare by someone who does not know the client’s potential.
They simply reject or asks for more banking and withdrawals from a choking account.
This is a betrayal of our loyalty.
The officials involved in decision-making know very well that all businesses lost faith in the banking sector during the 2006-2008 recession.
How on earth do they expect us to bank our money when we have no stocks to transact business with?
Where on earth would you find a person in their right mind failing to service a loan of $10 000 against $50 000 real estate title deeds?
In view of the above, genuine businesspersons are being deprived of a service, thus encouraging and condoning corruption.
Now is the time for account holders and formal business operators to be saved — financially.
Resuscitate our businesses!

T J Zvapano
90 Central Avenue
Bindura

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