In managing a company you have to face many difficulties and above all the organization requires more attention with regard to both income and expenditure at the end of the month.
If then we find ourselves in a situation of general economic crisis as in our country it is certainly worth knowing well what are the supports that can be had to solve the problems that arise or even to lighten some weights and manage the economy in the best way of your company.
Debt consolidation for companies is a financial product that can turn out to be an excellent solution for the entrepreneur who is struggling with managing large sums of money. What does it consist of?
Financial restructuring means a process aimed at intervening on the debts contracted by a company, in order to reorganize them and make them payable again.
This requires a careful analysis of the debt situation and that new strategies are subsequently applied in order to find a new payment agreement with the creditors.
To carry out an effective restructuring it is necessary to know and take into consideration various aspects of the company, aspects that the entrepreneur often ignores.
Let’s start with the simplest things: first of all we must consider the trend of income and expenditure by identifying in which period of the year or month the collections are concentrated and then making the payments to be made correspond at the same time. Later, a careful budget analysis will have to be carried out and it will be necessary to start to become familiar with some indexes and with some documents, such as SP and CE.
LE SIGLE SP E CE: WHAT ARE THEY AND WHY ARE THEY IMPORTANT
SP stands for Balance Sheet : represents the situation of the assets of the company at a specific moment in the life of the company
CE stands for Balance Sheet : In the income statement, revenues and costs can be substantially distinguished. Revenue means the sales of one’s assets, interest income or rental income. Instead, examples of costs are purchases, utilities, personnel expenses, passive rents, taxes and fees.
Moreover we find the RAITING : it is an indicator that expresses the probability that payments are made punctually according to the agreements made at the time of the loan.
It is a very important index because the possibility of obtaining a loan also depends on it. The reliability of the company and its ability to repay the loan are practically expressed through RAITING.
One of the resources that is provided to implement a financial restructuring for companies is debt consolidation.
CONSOLIDATION DEBTS FOR COMPANIES: WHAT IT CONSISTS
Debt consolidation is a financial product that allows you to get a loan that covers the sum of your previous debts. Why is it convenient? In this way the previous installments are canceled and a new single installment is presented which allows the repayment of the new loan and which is lower than the total of the previous installments. Both private companies and companies can apply for debt consolidation and if this type of financing is obtained, repayment terms will obviously increase. In a situation of economic difficulty in which the individual installments of each loan cannot be paid monthly, consolidation is a resource, as well as a solution, which can be considered important but above all advantageous. What are these advantages and what do you get thanks to debt consolidation for companies?
ADVANTAGES OF CONSOLIDATION DEBTS FOR COMPANIES
Among the main advantages we can isolate two points that are worth reflecting on if you own a company and are considering whether to request consolidation or not:
• There will be greater financial stability : the lengthening of the restitution times and the reduction in the installment will lead to greater stability in the company over time.
• You will have a high financial availability : the reduction of the repayment installment will allow the company to have a greater economic availability. This will make it possible to make new investments aimed at improving the business.
With regard to this last point, it is worthwhile to make a small study.
THANKS TO THE CONSOLIDATION DEBTS POSSIBILITIES FOR NEW INVESTMENTS
The economic availability or liquidity, is the resource through which the activity of the company is fed. In fact, it allows you to make new investments and to renew your company, keeping it up to date and able to supply products that go hand in hand with the customer’s request.
For this, below, you can find three tips to better manage it. In fact, making use of loans, without managing to manage new resources, can be a not particularly advantageous choice. Here because:
What must be done to better manage corporate liquidity?
|• Prepare a schedule between exits and financial income
• Cash out before paying.
• Calculate how long the entrepreneur will recover the money he has invested in an initiative or project
We have seen how debt consolidation is not a useful resource only for private individuals, but can also be an excellent solution for companies that do not sail in calm waters. Provided that one is informed about one’s own budgetary situation and that one’s expectations and intentions on how to use the new liquidity that will emerge will be assessed well, it will be a valid solution to make his business profitable again.