On Closing of Businesses

It is a challenging time so many businesses are closing. If you are an expatriate in a foreign country and suddenly you receive a letter that you will be laid off, it is like a nightmare. Worse is when you have a family to survive and some payables to meet -- credit cards, loans, mortgaged property, car dues, etc. Unless you are well-prepared for this scenario, it is really unthinkable.

Only today, there are some news articles showing contents that some bank branches will close so it means many employees will lose jobs.

The closing of many businesses contributes also to this because banks generate revenues by investing the deposits of companies and individuals, mostly employees, that will give high returns.

It is sad to know that even the financial institutions that handle money also get vulnerable. Normally when other industries are 'sick', the banks are there to lend resources so they can recover. They play the 'doctor' role. But if the doctor is sick, who will treat him?

If they cannot collect from big businesses that borrowed money from them and they collapse, they get the hardest hit because they have money to pay the depositors, plus the guaranteed interest on the deposit.

If businesses fail, they cannot pay their employees, and if those employees have bank loans/credit cards, they get stressed, worse, get jailed. The banks will not put to jail the employer for not paying them. There is another venue for that -- the employees will lodge a complaint at the Ministry of Labor, and it takes time also to finish it and get paid. So the survival thing is a big challenge when you lose your job and at the same time, you are attending to the complaint you lodged.

There are many third-party collectors who run after the individual debtors. Some use threatening words and calls. There are those who are emotionally weak and commit suicide while others get severely depressed. The jail scare in the face of uncertainties blocks interested borrowers from obtaining loans. On the other side, learning from the experience, banks get very strict in extending credits to people.

Many financial gurus and financial advisors tell millennials about putting hard-earned money by investing in things that will give higher yields than bank deposit interests -- real estate, gold, bonds, stock market, etc. so somehow this also affects the banking industry. Old people want it the traditional way, but the new generation are risk-takers and they want more for their money, not just sitting in the bank, converting it as a passive income.

The cybersecurity attacks committed by outsiders and insiders also contribute to the problems, as everything within the grid may possibly be accessed by those who are very genius in high technology and use it for their evil desires.

With the coronavirus outbreak, we heard about the news about the Chinese literally disinfecting their money. It came to my mind when I was young, how dirty bills and coins could be as they transfer from hand to hand. Now things are getting scary due to airborne viruses.

The digital wallet and cryptocurrencies were introduced that facilitate fast and contactless payments. They also skip some channels like banks and exchange/money transmittal centers, so this means a reduction of transaction expenses and time.

Everything evolves and the phasing is very fast. We are all connected. See, it takes only one coronavirus carrier to infect not just one but hundreds and thousands of people -- to think that there were no symptoms observed with some hosts. Like in some businesses, they reported big profits in previous years as if 'asymptomatic' or nothing was wrong, and suddenly they close this year for some reasons unexpectedly.

Considering all the above, these are my thoughts --

1. We must encourage more people to be entrepreneurs and start their own businesses.
2. Businesses must be well supported from A to Z. There must be ease in establishing a business, with reduced fees and requirements. The support system must be accessible for businesses to be sustainable. There must be 'business doctors' who will not charge a fortune to keep their businesses healthy.
3. Help resurrect dying businesses by relaxing fines and expediting renewal process.
4. The number of remaining years/months as per the visa of the debtor must also be considered when extending a credit facility, in addition to the percentage of disposable income that is usually their basis of giving it a yes or no, so problems will be minimized.
5. The gig economy is in, so it is worth considering having a flexi-visa or whatever good name can be attached. The idea is for people to have jobs and have side hustles/business, at the same so they can sustain what they need for the business and incur less expenses in terms of interests if they borrow money from the lending investors.
6. Promote massive information campaigns about cybersecurity so that people can properly protect their cash/assets.
7. For the banks to recover old bad debts, allow debtors to restructure the accounts in more realistic recoverable ways possible, with consideration to convert past interest payments to principal amount deduction.
8. Educate people about the digital wallets, cryptocurrencies and other contactless payments, and how to grow wealth.
9. Health is wealth, so healthy people will make a country wealthy. People must have easy and quick access to wellness programs, affordable health/life insurance, and world-class healthcare services. 
10. Allow local 'service time', real or virtual, to be exchanged for healthy foods and beverages. We are all life warriors. We need the right nutrients for the minds and bodies to be strong to keep lives and businesses going.

I really feel bad experiencing, witnessing and hearing about business establishments closing. May God give us the strength to carry on.

What's happening is a wake-up call to passionately make my own well-being checklist to avoid closure of my path to my dreamed retirement days.

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Photo credits:  Pixabay