It\u2019s common knowledge that businesses face cash crunches and issues with capital from time to time. With money issues comes a myriad of other issues that may lead to defaulting on loans and economic offenses eventually. Such issues can come knocking on your door anytime, whether you are a seasoned businessman or a first-time entrepreneur. And nobody wants to find themselves tagged as a \u201cbig time\u201d economic offender.<\/p>\n
On 1 February 2017, Union Finance Minister Arun Jaitley announced the fourth and probably the most important Budget of his career. In his speech, he announced an important proposal to introduce a law that would protect India and its people from offences affecting the country\u2019s economy:<\/p>\n
\u201c<\/i><\/b>In the recent past, there have been instances of \u201cbig-time offenders, including economic offenders\u201d, fleeing the country to escape the reach of the law. We have to ensure that the law is allowed to take its own course.<\/i><\/p>\n
The government is therefore considering the introduction of legislative changes, or even a new law, to confiscate the assets of such persons located within the country, till they submit to the jurisdiction of the appropriate legal forum. Needless to say all necessary constitutional safeguards will be followed in such cases,\u201d<\/i><\/b>\u00a0Jaitley said in his budget speech.<\/p>\n
This could spell trouble for a lot of business owners everywhere. So what can you do to ensure that you don\u2019t find yourself in such a situation?<\/p>\n
Businesses are often guilty of prioritising their business goals above a healthy cash flow. You need to have money for the long run without which all your business strategizing will be of no use. You can read more about improving your cash flow.<\/p>\n
List out every possible expense associated with your business. From the purchase of equipment and factory floor wages to every cash inflow and outflow. Account for every penny you intend on spending and stick to it. And what\u2019s even more important? Make timely payments on every item purchased to stay on top of your expenses.<\/p>\n
Surprised? You never know when you will need that financial boost to keep your business running smoothly! It\u2019s wise to stay friendly with banks and lending institutions so that they treat you favourably should you need any financial assistance.<\/p>\n
It is also important to keep yourself in the know about\u00a0new alternate routes of raising working capital. KredX provides one such alternate route. We are India\u2019s first invoice discounting marketplace that gives businesses a platform to get in touch with investors.<\/p>\n
What if despite your best efforts your business faces an unexpected cash crunch? Oftentimes it\u2019s more important to settle your debts than focusing on profits. Negotiate with whoever you owe money to as anybody familiar with the business world can empathize with how tough it is to keep your business afloat.<\/p>\n
So, now you know what to do if your business faces any financial trouble! It is vital to anticipate any problems your business could face. Be prepared for unfavorable circumstances by keeping a regular check on every aspect of your business and you\u2019ll be on your way to success in no time!<\/p>\n","protected":false},"excerpt":{"rendered":"
It\u2019s common knowledge that businesses face cash crunches and issues with capital from time to time. With money issues comes a myriad of other issues that may lead to defaulting on loans and economic offenses eventually. Such issues can come knocking on your door anytime, whether you are a seasoned businessman or a first-time entrepreneur. […]<\/p>\n","protected":false},"author":1,"featured_media":5919,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-1308","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/1308","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/comments?post=1308"}],"version-history":[{"count":2,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/1308\/revisions"}],"predecessor-version":[{"id":18464,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/1308\/revisions\/18464"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media\/5919"}],"wp:attachment":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media?parent=1308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/categories?post=1308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/tags?post=1308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}