Revive and expand your business with the healing hand of BRRU

Revival and rehabilitation of an economy which has undergone a series of severe national and global economic setbacks is crucial.

The survival of businesses depends on their ability to generate profits or maintain at least a break-even point.?

Among the stakeholders of the sector’s existence and continuity are their lenders – the banks and financial institutions.

In periods of economic downturn, it is not viable for governments to continue to subsidise a section of its workforce which has been deprived of their source of income in the long term.?

It is the banking sector’s responsibility to shoulder this burden effectively to revive and rehabilitate struggling businesses.?

Responding to the need of the hour, the Bank of Ceylon (BOC) set up its Business Revival and Rehabilitation Unit (BRRU) nearly two years ago. This unit has proved to be the Bank’s livewire in contributing to its bottom line, recording a remarkable rate business turnaround so far.

Currently the unit has a total corporate and retail customer base of 133 clients with a total business volume of Rs. 63.0Bn.?

The Bank believes that the BRRU is the best option at this juncture, as opposed to a hardline recovery process which would surely have led to a slow death of many businesses and the end of a livelihood for thousands of families.

Unlike in a traditional recovery process, the BRRU works together with customers in reviving their businesses, with the advice of experts in the financial industry to direct them.

The BRRU offers its clients a comprehensive revival package with extremely flexible repayment terms, to get back on their feet.

Fifteen (15) regional BRR Units established so far cover all?provinces and are working together with an increasing volume of non-performing or underperforming businesses to manage their cash flows and turn them around to profitability. Special focus is on MSMEs island wide under the overall supervision of the centralized BRRU.

A solid revival business plan is the chief requirement from the businesses who reach out for assistance from this unit.

The core issues of the troubled businesses will be identified by the relevant unit and a recovery plan of action outlined by the team.

The relevant regional unit under which the business is assigned to will monitor and control credit risk as a prelude to granting fresh working capital.

The unit will analyze the borrowers’ revival plans focusing on the core issues of failure, and finalise a workable business revival plan together with the borrower.

The plan will be based on future cash flow generation and management, and target a break-even period working toward eventual profitability.

Flexible repayment terms are offered, but once the company is able to meet its loan installment repayments on time, they will be transferred from the BRRU to continue business as a normal customer.???

The BRRU’s key objective is to create a new revival and rehabilitation culture to enhance core values and attitudes towards loan repayment.

The unit will continuously expand its key role of rescheduling existing credit facilities and granting of fresh credit facilities, while establishing a proper mechanism for repayment of installments.

The healing hand of the unit will also protect the businesses’ existing employment with expansion facilities for the business to create new employment.

By strengthening regional level units, the BRRU targets to revive 500 retail customers by 2024.?

Check out our success stories of Businesses who revived and reached the next level working together with the BRRU in the coming weeks.