Though, financing is the lifeline of Indian enterprises where it is a small business or the large one. While small business need to borrow money to grow their business and there are hundreds of lenders and money vendors out here who are ready to dish out cash to the budding companies. However, one of the best things you can do is to contact to the trusted money lender when you start missing your payments, as staying transparent most of the money lenders will work with you in the same way. Therefore, it will be a great start if you are looking for more guidance on a loan dispute.
One of the most important things to consider is the type of money lender you are dealing with. Moreover, if you are borrowing from a trusted bank that is strictly arm’s length that might only uses data to score and evaluate these loans, then your ability to get this kind of dispensation from the bank, could be much more constrained as compared to if you are lending from a relationship-based money lender who again might be more inclined to use soft information to not foreclose upon this loan.
While working with your trusted or local banks means there might be a greater chance that you will be able to work on the issues at the time as they arise which means the stakes for working with arm’s-length money lenders are different from trusted or local banks, and it is very important to understand this distinction as a borrower.
Bottom line in the strategy
One of the best strategies for maintaining a healthy as well as financially stable business is to have good cash flow and accounting practices implemented from the get-go, while keeping the business and personal finances mutually exclusive is an important first step.
In general, “Muddling finances can cause to miss any warning signs that your business finances might not be on track or to make it easier to ‘borrow’ money from the business to pay personal needs which can cause them to slip up on a payment or overdraft accounts. However, most of the money lenders would appreciate a forthcoming debtor and might actually reciprocate with courtesy to a debtor who is acting genuinely, sincerely, and proactively to try to come to reasonable terms.