The Estonian Creditors Association has launched a social project of entrepreneurship “Together we re-establish business relations”, which goal is to rehabilitate entrepreneurs who happen to be in difficulties, i.e. to re-establish their image and reliability. We want to re-gain money into the economy and participate in a charitable investment project.
In free market economy it is natural that not all enterprises are sustainable, weaker companies fade away, which is inevitably from the point of view of the development. An enterprise is not strong due to substantial turnover and significant profit. To cut a long story short – only those companies survive which have long-term perspectives, good risk management and can avoid making wrong decisions. Generally we do not agree to the statement that the members of the management board have nothing to do with the occurrence of permanent insolvency. In very rare cases we may admit that despite very good risk management the worst scenario has occurred. These exceptional cases include the damage of the production complex, natural disaster, a coup and other similar unpredictable and destructive events. In other cases the management board of an enterprise has no right to let the economic situation deteriorate to the level, which leads to permanent insolvency and thus damage the creditors’ interests.
We can hear news about bankrupt companies and spiteful entrepreneurs, who have built their business idea on scam or want to escape from the failed enterprise as a winner leaving behind uncovered liabilities. But not all entrepreneurs are ill-disposed. Despite the fact that formally it might be their fault that the company is not doing well, they have not intentionally caused the insolvency by not being focused and by making wrong decisions.
The Estonian Creditors Association in cooperation with its members (creditors) give the former board members a chance to rehabilitate their name, restore business relations and move on with an improved image.
Creditor – waives an irrecoverable or written –off or expired claim free of charge into the Bank of Concepts. By such a contribution (tax free) he/she makes a donation to the projects financed via the Bank of Concepts and signals to the entrepreneur, who has caused debts, about reconciliation. It significantly contributes to the improvement of business culture, enables to take part in the decision-making related to the financing of innovative business projects.
Debtor – The Estonian Creditors Association contacts the debtor and makes a proposition to pay 10% of the debt residue into the charitable project – Bank of Concepts. The debtor redeems the moral liability to compensate the caused damage. He/she restores his/her image and business relations, and is excluded form the black list. He/she also contributes to the improvement of business culture.
Bank of concepts – the collected money is used for financing innovative business projects, to take (passively) part in supporting projects, which possible outcome is re-invested into a new project. The expenses of the Bank of Concepts are covered by the The Estonian Creditors Association, all the money re-gained is directed into supporting projects.
The Estonian Creditors Association believes that the idea is sustainable and we are sure that we keep the back door shut for the ill-intentioned debtors. As a waiver of debt to the Bank of Concepts is the entrepreneur’s free will, it is definitely not the place where swindlers could expect to find a cheap campaign of image improvement.
The project is acceptable to the entrepreneurs, whose ethical and moral principles are high, who believe in their former business partners and want to improve the climate of entrepreneurship.