Options to support SMEs in coping with the impact of COVID-19
It is clear to everyone that the crisis caused by COVID-19 is hitting small businesses the hardest, moreover for many segments, the matter will not be limited to the removal of quarantine, it will take enough to restore SMEs long period of time. Many lenders, unfortunately, have taken a course in squeezing the maximum out of customers at the current time and resigned themselves to the fact that the future base of customers in the small business segment for work will be significantly thinner.
But you can act ahead of the curve, sacrifice some part of the profit in the moment and help small businesses survive by winning ultimately much more in the future. How? Let's see!
General recommendations
Commissions and other fixed payments
Set commission holidays for a predictable critical period (2 to 6 months), this measure will support current customers and contributes to the influx of new ones from less flexible players
Clients without loans
Proactively offer loans to businesses with active settlement accounts
with deferred payments and subsidies
% by the government (if such a program is in place) for wages and rent payments
Clients with loans
Without waiting for the first delays in payments, contact customers with an offer about restructuring and renegotiation of conditions, the same measure can be offered “to the market” for clients of other organizations
Common Practices of Debt Restructuring in the World
Shift the payment date "to the right"
suits the most troubled clients, lender forgo profits now, but keep customers in the future
Reducing monthly payments with lengthening the term
suitable for clients who have remained active during quarantine, but with a lower turnover due to natural reasons, the final product profitability for the lender increases
Pay off interest only for some period with a future revision of the annuity
suitable for clients with minimal activity during quarantine, the load on the client is less than the previous option, the final profitability of the product is more
Converting credit line debts into classic loans
reviews of credit lines for small businesses are often difficult to digest even in fat years, not to mention crisis years, transferring to a classic loan is both more comfortable for the client and more profitable for the lender
Crisis now, benefits forever
Loyalty of a grateful client is the key to long-term mutually beneficial cooperation
Being customer-focused during difficult times will bring you new customers now and in the future.
Non-standard technologies for interacting with customers in a crisis can become a competitive advantage in normal times
Some practices may be both more convenient for clients and more profitable for the lender, which you would not have known before
We are always happy to answer
For all additional questions and clarifications on the practices of effective restructuring of existing loans and customer analysis for new supporting loans, please send us an email or call, we are always happy to answer. This requires an individual approach for each, both the lender and the client, and we have no equal in this
+7 (495) 997-3330