Companies need to manage receivables properly in maintaining the cash position for business activities. Companies need to ensure that any terms of credit sales can be billed following the period set by management. This is necessary so that the company has a sufficient cash position for the period of the current business operation.
Debt can be used as an alternative source of company cash. Utilization of debt as a source of company cash needs to pay attention to various aspects, including:
- Borrower profile
- Amount of principal
- Interest rate
- Due date
- Collateral need
- Economic conditions
The consideration of all debt selection aspects will be assessed according to the company’s ability to pay off the debt.
Improper planning and assessment will position the business operations in dangerous situations. Difficulties in collecting receivables and paying off loans make the company’s cash position disrupted so that it is threatened to experience financial distress. Continuous financial distress can cause the company to go into liquidation.
ShineWing Solution is here to be a solution for you in managing and restructuring the accounts receivable and payable. We are here to help and assist you in formulating policies related to accounts receivable and payable, analyzing sources of funds until conducting restructuring by convincing borrowers of the ability and credibility of the company.