How do you think banks can find the right balance

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Problem

I really enjoyed reading your post! You made some great points about loan restructuring, ongoing monitoring, and even the idea of financial counseling for Maria. I don't see that suggested often, but it really could help someone in her shoes avoid the same situation down the road. One thing we do at my bank that I haven't seen mentioned much is using a CD as cash collateral for business loans. It helps protect the bank, but it also gives the borrower a little boost because the CD earns interest, sometimes that interest can even go straight into their checking account to help with loan payments. It's a win-win in some cases. You brought up business interruption insurance, which honestly isn't something a lot of small businesses think about. Should banks always require things like insurance or cash collateral for small business loans in riskier industries, or does that make it too hard for new businesses to get off the ground? Get the instant assignment help. How do you think banks can find the right balance between protecting themselves and supporting small business owners who want to grow?

Reference no: EM133926345

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