In the complex world of business, managing credit is a tightrope walk. Extending credit to customers is crucial for growth but without a robust policy in place, it can lead to bad debts, cash flow problems and even legal complications. That is where a well-defined credit management policy comes in. But creating and more importantly, complying with this policy is a challenge for many businesses. This is where Praman Advisors Private Limited, a leading legal tech firm, steps in to be your trusted partner.
1. Overview:
A credit management policy is a set of guidelines that dictate how a business extends credit to its customers, manages collections and handles overdue payments. It is the blueprint for a healthy cash flow. Praman Advisors Private Limited specializes in helping businesses not just create but effectively implement and comply with these policies.
Leveraging cutting-edge AI technology and a team of experienced legal and financial professionals, Praman Advisors offers intelligent and customized compliance solutions.Our services are designed to streamline the process, reduce manual effort and ensure your business remains compliant with all relevant regulations, such as those from the Reserve Bank of India (RBI) or other industry-specific bodies. This proactive approach helps you mitigate credit risk, protect your business and foster a healthy financial environment.
2. Benefits:
Engaging with a professional service like Praman Advisors offers a multitude of benefits for businesses of all sizes:-
- Risk Mitigation: By establishing a clear, legally compliant credit policy, you can minimize the risk of bad debts and non-performing assets (NPAs). Their expert analysis helps you identify and assess risks, ensuring you make informed decisions when extending credit.
- Enhanced Cash Flow: A structured and efficient collection process, as guided by Praman Advisors, leads to quicker debt recovery and improved Days Sales Outstanding (DSO), freeing up working capital for strategic investments and growth.
- Regulatory Adherence: The financial landscape is ever-changing. Praman Advisors ensures your credit policy and practices are always in line with the latest regulations, preventing legal issues, hefty fines and reputational damage.
- Improved Business Relationships: A clear and transparent credit policy builds trust with your customers. It sets expectations from the outset, leading to fewer disputes and a stronger foundation for long-term relationships.
- Operational Efficiency: Automating and streamlining credit management processes through their user-friendly, tech-driven platform reduces the burden of manual tracking and reporting, allowing your team to focus on core business activities.
3. Documents Required:
The specific documents required may vary based on your business structure and industry but a typical application process with Praman Advisors will involve:-
- Business Registration Documents: Proof of your company's registration such as the Certificate of Incorporation, Partnership Deed or Proprietorship details.
- Financial Statements: Recent balance sheets, profit and loss statements and cash flow statements to assess your current financial health.
- Existing Credit Policies (if any): A copy of your current credit and collection policies for review and analysis.
- List of Customers and Debtors: A detailed list of your current debtors including their outstanding balances and payment history.
- Standard Operating Procedures (SOPs): Documentation of your current procedures for invoicing, follow-ups and collections.
This list is only indicative, the Praman Advisors team will provide a tailored list of documents based on your specific needs during the initial consultation.
The process to partner with Praman Advisors is designed to be seamless and efficient:-
- Initial Consultation: Reach out to Praman Advisors through our website, phone or email to schedule a free consultation. A dedicated expert will discuss your business needs and current challenges.
- Needs Assessment: The team will conduct a thorough analysis of your business, industry and existing practices to understand your unique requirements.
- Customized Solution Proposal: Based on the assessment, Praman Advisors will propose a tailored credit management policy and a compliance framework. This includes defining clear objectives, roles and procedures.
- Documentation & Implementation: You will submit the required documents and the Praman Advisors team will work on drafting and implementing the policy, often leveraging our AI-driven tools to automate parts of the process.
- Ongoing Support & Monitoring: The partnership does not end with implementation. Praman Advisors provides continuous support, regular updates and monitoring to ensure your policy remains effective and compliant with a dynamic regulatory landscape.
5. Fees and Timelines:
Praman Advisors offers customized solutions and as such, the fees and timelines are not a one-size-fits-all model.
- Fees: The cost of services is determined by the scope of work, the complexity of your business and the level of customization required. A transparent fee structure will be provided after the initial needs assessment with no hidden charges.
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- Manju Laur: 📞 +97119 94042
- Timelines: The timeline for developing and implementing a new policy can vary. It depends on the size and complexity of your business operations and the availability of necessary documentation. Praman Advisors is committed to a swift and efficient process, ensuring your business can benefit from a robust credit management policy as soon as possible.
