KUALA LUMPUR: Entrepreneurs need to check their cash flow capabilities and financial preparedness to repay loans by end of the moratorium in September, said Association of Development Financial Institution of Malaysia (ADFIM) secretary general Mohd Prasad Hanif.

He said in order to ensure viability, entrepreneurs who applied for the moratorium, need to refine their business models to keep up with the drastic changes to the new normal triggered by the Covid-19 outbreak.

He said failing to do so will expose their businesses to risks such as lower sales with declining cash flows due to their obligation to repay their loans.

“In this situation, entrepreneurs are not able to get proper financing. In addition, post-Covid-19, consumers’ buying power is still adapting to the new normal and businesses may not be able to adapt their business model to follow this trend.”

Prasad also urged entrepreneurs to obtain business advisory services by contacting the Entrepreneur Development Division under an agency or institution that is a member of ADFIM.

He said these include Centre for Entrepreneur Development and Research, Technopreneur Training Academy, MARA Entrepreneur Development Division, Perbadanan Nasional Bhd’s Franchise Institute and Agrobank Centre for Excellence.

“Entrepreneurs must not hesitate to seek their advice as ADFIM’s members will continue to be committed to provide their assistance and support,” he said.

To that end, he advised the affected entrepreneurs to contact the nearest branch of the agency or financial institution to find out more about such facilities as financial advisory, rescheduling or restructuring offered by the institution.