Synopsis:

The case study is about Salina Johan, the owner cum the general manager of Mesra Hotel. Started her motel business in 2005, in Kuala Lumpur, Salina and her husband, Armizi Zulkifli had brought the business to Alor Setar, Kedah in 2013. Satisfied with the success of the motel in Alor Setar, the couple decided to build a two-storey budget hotel near to the existing motel. Located 15 minutes away from the city centre of Alor Setar, this hotel was hoped to continue the success of Mesra Motel. The initial cost of building the hotel was estimated at RM950,000. Salina had invested all her savings and had also used cash from her other businesses, a grocery store and a 15-room motel, for the project. Unfortunately, an unforeseen problem occurred. The project had been beyond schedule due to lack of capital because the cost of completing the building had increased. The contractor informed her that the project could not be continued unless she paid the progressive payment. Everything had become expensive, while the income from the grocery store and motel had decreased. Salina Johan was having a serious financial problem. She was running out of cash to pay the contractor and did not know the proper procedure to apply for a bank loan. Further, she also had no idea about alternative sources of funding than the bank loan.