Covid 19 - Needs Innovative Solutions from Banks

The Covid 19 has brought in extra ordinary challenges in our life as also has completely brought in a new challenge in all areas including in business. Baring a few sectors, business across all the sectors are hugely impacted. The sudden closure of the businesses and the business cycles will open up major challenges when the businesses reopen. The companies, especially the SMEs and the MSMEs will be confronted with a situation of lack of working capital and this will be one of the major challenges. We need to focus on this immediately and the banks have to come up with an innovative solution of funding at least three to four months working capital after factoring lower receivables during the next few months as also delay collection of receivables. This funding has to be provided without seeking any additional security. The term loan should be for at least 18 months to 24 months  depending on the requirement of the company and can be repaid in monthly installments (ballooned, wherever required, with a moratorium of three to six months). The interest applicable for such funding be at the same rate of the working capital with possibly an interest rate incentive for earlier payment.