Unfortunately, with the financial crisis , many companies have started to accumulate debt because they are earning less. It is a current reality in Brazil and if your company is one of them, know that you are not alone. But the good news is that banks and lenders are making efforts so that their clients can renegotiate their debts.

It is a natural movement. Financial institutions act as business drivers, providing financial resources for new plans and projects. When companies are in the red, they become debtors of these institutions. And because getting no pay is not a good deal for them, the way is to renegotiate.

But you need to be aware when it comes to debt renegotiation. See  tips for getting out of the red without future problems.

Don’t let debt grow too much

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In general, your company’s financial health gives signs that it may not be as well. If you let the debt roll too long, you may be left with an unviable amount to pay in the future.

Remember: banks will agree to reduce the amount of their debt to receive, but you will still have to pay most of it. The longer the debt, the more difficult it will be to raise funds to repay it.

If you have good financial planning in your company, you will be able to know the actual amount of your debt, and the right time to renegotiate.

Make a realistic proposal

When you feel it is time to renegotiate your company’s debts, you will need to make a proposal that fits your situation and the reality of the financial institution.

If you propose a value that is far below acceptable, you may not only not get the deal, but may also close doors for future negotiations. Take your proposal and be open to negotiate with the bank or finance company.

Be Careful With Blindfold

Being in debt makes you a vulnerable customer, in the eyes of financial institutions. As a result, some of them can take advantage of renegotiation by trying to sell products that you wouldn’t need.

If your manager tries to force you to buy a product as a condition of renegotiating your debt, be aware that this is a crime and is called a sale.

You can now also choose to renegotiate debt with companies that specialize in financial solutions that offer more competitive rates and will not represent new debt in the future.

Look for debt renegotiation efforts

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Because there are so many debt companies today, banks and lenders have been working together to make several renegotiations at once. At such times, institutions often offer more affordable rates and conditions to facilitate renegotiation. Find out when these joint efforts occur, and enjoy!

After you renegotiate your debts, you should redouble your attention to your company’s finances. This is a great time to review all financial planning and prevent the problem from happening again.