Financial Services
Challenges on financing to local business lie ahead in Myanmar including but not limited to the fact that:
- Distributors provide financing with high lending cost and also high exposure due to customers’ needs of financing. However this process is more flexible compare to banks and customers’ lack of qualifications to apply banks’ financing. It goes both ways, either customers will take the facility due to no other choice which eventually may impact on their cash flow or, look for lower quality product with affordable price
- Banks require debtors’ guarantee (some cases second guarantor required due to customers’ default payment), large down payments, and additional collateral
- Interest is paid upfront for the whole term and accounted upon 100% of equipment value
- Banks focuses more on branch development and networking compare to such financing
- Bank’s process lead time starting from application, getting approval to disbursement in most cases take long time causing customers undergo opportunity loss and in some cases causing capital flight to nearby countries with better investment atmosphere
Such challenges obviously create obstacles for business owners in Myanmar who wish to move forward in line with the country development and openness. Win Finance is established to remove these barriers and obstacles and accommodate business owners’ need with some adaptations needed to run the business.
