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Manage Corporate Debt And Enhance Your Capital With The Right Credit Counsellors

By Ananth R Bhedke, MD, Ahvana Hotels

Established in the year 2009, Ahvana Hotels is a new age hotel management company providing hospitality services all over India. Located in Mumbai the hotel provides 24/7 services. Ahvana has evolved into the fastest growing Management contract & franchise program in the India & World, Ahvana is dedicated to expanding the franchise program worldwide in the coming years.

Many people think debt management is a kind of loan, but it is not. On the contrary, it is a way to restructure the company's debts and start clearing them off instead of solely funding interest. Debt Management is a comprehensive way of maturing into a debt-free company. It is important to have a good credit score in today's date. Many organizations work hard to increase their credit score or reference grade. If your company has a genuine quotation score, then it is easy to apply for loans.

Debt management is a system of debt concentration programs, that are designed to assist companies to regain charge of their finances. In turn, they are also expected to decrease unsecured debts. These kinds of debts are not supported by any kind of collateral and include medical bills, credit cards and scholar loans. If you are having a line of credit or a term loan, these tips will help you intelligently handle your debt as you mount your company.

Consult for valid interest rates with your moneylenders: There is the best tool which will help you negotiate in the right manner. Make your lender compete for the business. During a crisis, one that converts you from an applicant to the sales is going to earn you some business.

Revise Your Marketing Budget

Before you have planned to work on the business debt, you must be aware of your prevailing financial situation.
When you see that the monthly payments are falling behind revisit the financial plan and try to arrange the unprecedented cash flow. If you want to seek expert help, then your accountant might help you. With expert help, you can plan your credit easily. They will offer a mentor guide and online seminars. Ultimately, after reworking on your finances, you can reach the debt-reduction process.

Overcome Business Expenses: For debt management, it is necessary to take a look at the operating cost. Then, figure out which kind of expenses can be axed for daily operations. For instance, cease monthly subscriptions that you hardly use, suspend professional membership and then see how your finances are soaring again.

If you are renting an agency office, check to rent additional area or downgrading to a miniature work area to lessen your regular rent. Consult with vendors to reduce flat rates. For instance, software developers often render deductions for charges adjusted yearly against month-to-month.

Enhance Shopper Sales: Additionally, to cutting costs, look after different methods to improve consumer businesses that will enhance your income. Advance mark-downs on products and payments on services, particularly for faithful and consistent customers. You can also ramp up records and account receivables by following-up on overdue installments from clients. For example, bestowing your clients with cuts and discounts for repaying fees up front. This can assist to recover your money movement.

Chat With Lenders and Creditors: When you find companies lagging behind with payments, the first and foremost responsibility is to prioritize the debt payments. Furthermore, determine which creditor and supplier must be covered first. Moreover, the statement of cash flow must be helpful to identify delinquent and missed accounts as well as payments.

Once you have completely understood the money matters, you can easily allot work to others for working on the outstanding debts. You can also consult contract creditors if they are eligible for agreeable terms of payment. In addition, you can also ask your donors about certain loan consolidation schemes, which will ultimately help to develop an aggregate number of loans and make a process of one single payment.

Consult With any Debt-Restructuring Firm: Obtaining the aid of an acknowledged debt-restructuring firm is a however different alternative if past attempts fail to reduce the debt of the company. Debt-restructuring specialists barter with lenders and collection bureaus for your behalf to elongate, reiterate or modify the present credit records. The debt-restructuring method usually requires a signed agreement between your company and the debt-restructuring firm. Moreover, they will also help to set up automated withdrawals from the company bank account to resolve remaining debts. Using a debt management program (DMP) to decrease your loan interest prices and reduce recurrent adjustments may appear like a magnificent concept, however, there are some shortcomings as well. If a debt management program is a correct movement for the company will eventually depend on the sole monetary status. Before considering the leap, it’s essential to conjecture debt management program pros and cons.

Make Monthly Payments: There is no need to fret about recurring payments every month. With the help of a credit counselling firm, you can directly club all the amounts and pay for once. It is particularly beneficial when companies have a lot of records or fights to maintain a trail of scheduled dates.

Secure low rates of interest: Any credit counsellor on your behalf will help to negotiate lower rates of interest. When a company is dealing with unsecured loans, interest rates can go high and increase monthly payments. However, the reverse also holds true.

Pay debt Faster: With all the negotiations and term conditions, a company can pay the debt quite faster and with hassle-free processes. Moreover, with lower interest rates, the company can recover the principal balance too.

Close credit card account: Any credit involved in the debt management must be closed with immediate effect. To make sure your interest rate is lower and you get all the perks of debt management, closure of credit card is necessary.

Make regular payments: To wave off the debts, there is a need to consistently making payments every month without fail. If the company fails to pay, then the debt plan will be hampered. A debt counsellor helps to understand the situation and negotiates with the creditors on behalf of the company. This is to make sure the interest rates are lowered and the payments can be done smoothly. The same goes for immigration consultants, as companies send their employees to overseas for work purpose, they help to make all the arrangements.

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