Here at RIZ, we take up the entire responsibility of all the cash flow management along with other issues, sort them out legally and assure you the best service in the sense that we will be collecting the margin, only after you receive the profit from our work.
Yes you heard it right!
We will collect our fees only after you are in profit from our work of debt collection and other cash flow management tasks assigned.
We are globally the most Successful Debt-Collection team with 90% success rate, the figure speaks larger than words to prove our efficiency.
You can be rest assured handing over tasks to us and stay focused on growing your business.
We are well renowned in B2B AND B2C transactions, legally stable and thereby working at our best for your benefits.
In what other situations would you require us?
Inadequate staffing system:
In small businesses especially; when there is insufficient staffing system, it is better to handover debt collection task to an agency to do it effectively.
The debt is significantly overdue:
Statistically, the longer an invoice goes unpaid the harder it becomes to collect. So, rather than wasting valuable resource chasing the customer internally it would be beneficial to pass it over to the experts sooner rather than later.
Uncontactable customer:
Debt collection agencies like RIZ have extensive resources available to help them trace even the most adamant customers. Once they find the customer, they know exactly which approach to take to ensure your customer makes the payment.
Repeated excuses:
Debt collection agencies have the skill of tackling all types of customers, even the most evasive ones.
The weight that Debt Collection Agencies vest upon the debtors is far enough to collect all the money irrespective of the excuses they throw.
So if u find any such troubles or more during debt collection, feel free to come to us at RIZ BUSINESS SOLUTIONS.
I repeat the striking feature here when compared to other business agencies:
"You can pay us only after you have received your debt amount from your customers so that you will be in profit before paying us."
What more one can ask for?
Debt Capacity of a Company
Flow of money is extremely important for any business. Taking loans is not a blunder, but being unable to pay it off is a big one. Some industries thrive on utilizing their debt efficiently to make the most of their cash flow.
Let us look into what is debt Capacity and how companies deal with it.
So what exactly is Debt Capacity?
Debt capacity is the ability of a business to meet its financial obligations when they are due without causing insolvency. A business can borrow the amount without putting the company in a financially bad situation.
Now that we know the definition let’s learn how to calculate it.
There are various formulae like Current Ratio, Debt Service Coverage Ratio, Debt to Total Assets Ratio, etc.
Let us go with an example of Debt to Total Assets Ratio.
Debt to Total Asset Ratio:
This ratio takes Total Debt divided by Total Assets to assess how much of a company’s assets are available and not tied to debt.
Here, the higher the ratio is, the higher the financial risk
Note: Companies with adequate unused debt capacity will have access to more capital, possibly at a lower cost to them.
Solution:
More the Cash flow, more the debt recovery. Easy Peesy? It is not as easy as it sounds!
EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization) helps in cash flow calculation as well as company's performance.
Businesses should keep in mind the debt to equity and capacity to repay debt in mind while getting into debt transactions.
Various formulae and calculations of debt capacity can be exhaustive. But there are few points that make it feathery light.
Debt capacity primarily focuses on a company’s debt compared to its ability to repay its financial obligations. Debt capacity ratios work best when used in combination with other ratios.
Debt capacity models and debt capacity templates offer the most comprehensive view of a company’s financial position and its financial obligations.
For safer credit obtainment, it is best to keep all the financial statements of the company beforehand. This reduces the burden of future stress and time that goes in collection of information at later stages.
--------------------------------------------------------------------------------------------------------------------
Hope this was helpful, will be back soon with other such Business Blogs.
Large businesses could be fined by this new late payment law!
Sometimes a few large businesses can act nasty and can delay the payments, which may be utmost necessary for the creditors who may have small businesses. To resolve these issues came this new late payment law.
Research from the Federation of Small Businesses (FSB) shows that roughly 50,000 small companies close every year because of late payments.
Previously, business groups had raised concerns that the only power the commissioner had was to highlight bad practices. In an attempt to make payment practices more transparent, the government made it mandatory for large businesses to publish their payment data twice a year, however this was also criticized, as it was pointed out that the raw format of the data makes it hard to use.
Mike Cherry, national chairperson of the FSB, quoted: “We know that paying small businesses late is debilitating, and the practice has increased during Covid-19. It deprives small firms of cash flow, holds back growth, undermines productivity and forces many to take out external finance. In thousands of cases a year this causes the closure of small businesses.”
More than anything else, it becomes mere humanity to understand everybody's plight and circumstances and make the due payments on time so that no one is affected in business. Maintaining mutual respect is vital and basic practice that should be followed by all businesses.
