Businesses Advised to Contact Their Bank Immediately After Shelling, Without Waiting for Loan Arrears

Businesses that have lost part of their production capacity or income due to an enemy attack should notify their bank of the problem before any overdue debt arises.

This advice was given by Oksana Shulha, Director of the Small and Medium-Sized Business Department at GLOBUS BANK.

According to her, even a financially strong business cannot completely eliminate war-related risks today, but it can prepare in advance for a situation in which its cash flow is temporarily reduced due to shelling.

First and foremost, a loan repayment plan should not be based on the highest possible income. The monthly payment should remain manageable even in the event of a temporary decline in sales, a production stoppage, or increased logistics and energy supply costs.

In addition, an entrepreneur should have a crisis scenario prepared in advance: understand which costs can be quickly reduced, whether production can be relocated, where to find an alternative supplier or transport, and how the company will finance its operations during the first weeks after its property is damaged.

Timely communication with the bank is also particularly important. If an attack has caused a business to lose part of its production capacity or income, contacting the bank in advance leaves more options for finding a solution — from adjusting the payment schedule to restructuring the loan, if provided for under the programme terms.

“Today, an entrepreneur needs to understand in advance what will happen to the loan if the business loses part of its income for several weeks, equipment needs to be repaired, or production has to be urgently relocated. This needs to become almost an “instinct”, because this is how real financial resilience is built,” — Oksana Shulha emphasised.