Protect your loan repayment track record, clients advised

MBABANE – Clients and potential clients of financiers have been advised to protect their track record of their loan repayment record because it counts far more than collateral.

This is according to Managing Director of the Swaziland Development Finance Corporation (FINCORP) Dr Vincent Mhlanga.

Mhlanga said financiers were more interested in clients who are able to repay their loans.
“Your loan repayment track record is the greatest asset that one has in the business and it will not help you in any way to jump from one financier to another, after failing to repay the first loan because financiers have a way of finding out clients who jump from one financier to another, leaving behind huge debts,” Mhlanga said.

He went on to advise clients that they should establish a good working relationship with their financiers.
Truth
“Clients should always tell their financiers the truth about their businesses and loan repayment track record because it is better that the financier finds out about your misfortunes in loan repayments, than finding out from somebody else.
At FINCORP, we will tell you the reasons why your loan request was rejected because we want to ensure that everything we do is above board and you are not left in the dark.

“This is why the biggest test is to ask yourself if you would continue with the project if the money is not coming from your own pocket?
“If the answer to this question is in the affirmative, then chances of success of the business are high,” he added.
Mhlanga said proposals that were rejected by FINCORP in most instances were those that were seen as projects with a high risk factor.

“We do not reject projects because the client does not have collateral but simply because we looked at the project and saw that it had a high risk factor,” he said.

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