A Senior at the Assurance Unit of Deloitte Ghana, Kwame Osei Bonsu, is cautioning businesses and borrowers to promptly repay their loans acquired from banks or lenders.

According to him, this is necessary to safeguard the financial ecosystem in Ghana and ensure continuity.

Speaking on the Joy Business Masterclass on Joy FM, Kwame Osei Bonsu, said any delay in paying back loans not only affects the borrower’s credit history but prevents a lender from lending to other entities to ensure the continuity of their ventures.

“Paying back loans is very key because banks plan with your payment schedule anticipating the money because they know that some other businesses need this cash flow. And with your payment, they can fulfil that obligation”, he mentioned.

He also furthered that a delay in repaying loans without prior notice to the lender breeds mistrust and jeopardises a borrower’s chances of accessing any other credit facility going forward.

He also urged lenders to do their due diligence to ascertain the credit risk levels of individuals or businesses requesting for loans.

“If you have funds and you want to give out loans, you should be able to determine the specific risks that you are exposed to in order to take decisions that will benefit you and the economy”, he added.

Kwame Osei Bonsu also entreated lenders to hold borrowers accountable by calculating the expected risk associated with the borrowers and find alternative avenues to ensure prompt repayment of loans.