In a debt agreement, there is definitely a debt principal, interest and maturity. Debt delinquency means adding to the company’s burden. Not only are the principal debt unpaid, the interest on the debt will also increase. Moreover, it is added with a due date. In addition, financial services companies will see no goodwill from your company to pay off. And usually, non-bank financial services are very strict about this. It could be a debt collector who immediately intervenes to collect.
Avoid Paying Debt with Other Debt
10 Effective Ways to Manage Corporate Debt Maybe you’ve heard the term “dig a hole, close a hole” which means paying off a debt with a new debt again. This is legitimate, but it is also risky. Paying debt using other debt will not complete the loan, but instead adds to the company’s burden. Especially if the loan is done in a fast way and bigger interest. If this is the only way, then make sure the financial services company that is selected can be trusted, has a legal umbrella, is safe and provides comfort in terms of repayment.
Separate Personal and Company Finance
10 Effective Ways to Manage Debt Companies that are still on a small scale tend to combine personal money with company profits in the same account. If this method continues, it will be difficult to monitor income and expenses. The profits and losses generated by the company will not be clearly seen.
The policies and management of money for individuals and companies are indeed different. Especially if it is related to debt. Do not let personal money run out to pay company debt or vice versa. Or it could be the company’s profit that is supposed to be used to repay capital debt, other investments are used for personal gain.
Negotiate and Collaborate
10 Effective Ways to Manage Corporate Debt When your company decides to owe, you should first negotiate with the lending party. With good negotiation there is a possibility that your debt burden will decrease slightly. You might get a loan interest or a mild payment terms. In addition to negotiations, also establish good cooperation. This cooperation will foster mutual trust between you as a borrower and the lender. The ease of giving the next loan can be an example. Or even those who lend want to work together to develop your company.
Make a Neat Note & Bookkeeping
10 Effective Ways to Manage Corporate Debt In addition to marketing strategies, bookkeeping is also the most important thing that needs to be considered in the development of a business. Bookkeeping is the process of collecting and recording data and information relating to business finance in a regular and detailed manner. Regularly here is a routine and disciplined recording of transactions every day. Terperinci realized by noting anything related to the company’s finances ranging from capital, costs and income, obligations and so forth. This includes debt that should be written in detail, both the loan amount, the installment amount and the payment period.
With good recording and bookkeeping, there will be many benefits, which can be obtained by the company. The movement of the company that is run will look clearer, able to control operational costs, know assets owned, minimize the risk of losing assets and much more. Therefore you must start learning about financial accounting or company transactions even in a simple manner. You can also ask for help from an assistant or accounting software so that everything is properly recorded.
One of the accounting software that you can turn on is Journal. Journal is the number one online accounting software in Indonesia. With Journal all the results and convenience that you expect in the company’s financial calculations will definitely be obtained. Find the interesting offers here just for you.