At a time when CEOs are in a constant quest for growth, there is a promising but often overlooked opportunity available close to home: presales. In general sense presales is a simple process of probing about the target customers.
Presales requires a dedicated team of experts split into roughly two-thirds for technical activities (crafting solutions to customers’ problems) and one-third for commercial activities (managing deal qualification and bid). These activities have two to three times more impact on revenue generation than generating leads. Besides all these presales also helps in battling with contingencies like default in payment, bad debts, and fraudulent transactions. By knowing the financial status of the Company we can easily segregate between a Sound Financial Company and an unsound financial Company and accordingly with whom business relations can be extended.
In this article we will briefly discuss about the sound financial status of a Company and how it can have a positive impact on framing Debt Recovery policies.
What does sound financial status of a Company mean?
Like your own financial position, a company’s financial position is defined by its assets and liabilities. A company’s financial position also includes shareholder equity. All this information is presented to shareholders in the balance sheet.
Sound financial status is accorded to those companies which happen to efficiently maintain a balance between their assets and liabilities.
How can it impact in framing Debt Recovery policies?
A company that is running successfully, timely filing their Income Tax Returns, Annual reports, balance sheets is supposedly having a sound financial status. But there are a lot of fraudulent companies which portray themselves as fully functional and solvent in nature with complete intention of deceiving other businesses. Our motive is to safeguard our business from such companies and have robust policies to deal with circumstances. Instead of chasing your debtors for money and wasting your time and efforts, it is better to have a robust debt recovery mechanism based on presales. Once you know the financial status of the Company it is easier to take decisions to extend or not to extend any business relations.
Where to look up for the financial status of a Company?
There are various methods mentioned below to find out the financial status of a Company:
- From the Ministry of Corporates Affairs website.
- Visit the Income Tax website to find their annual reports.
- Many company’s website provide its annual report.
- Visit the data.gov.in to access any particular company’s public documents to verify the same.
We have tried to discuss here about the financial state of a company and establish a relation with debt recovery policies. Presales have proved to be a vital element in the business sector, based on it businesses have taken very important decisions to run their company. Sometimes it has created miracles and sometimes it could not. But it is no harm to be vigilant about your customer, beforehand knowledge acts a preventive measure hence safeguarding your business from bad debts and contingencies.