How Loan Management Is Crucial For Small & Medium Businesses
Loan management is an integral part of the organization’s asset-liability management. Loan management involves periodical sourcing funds by getting the same sanctioned or repaying it within a given period of time. This is ideally done by the corporate treasury department to meet the solvency norms and also to meet liquidity criteria. Apparently, loan management has become an utmost priority for several reasons connected with liquidity, solvency or higher goodwill for the organization. Organizations generally resort to a short term loan to meet the working capital requirement. This is available in the form of SME business loan Malaysia . Let us get into the detail as to how loan management is necessary and yet very crucial for small & medium businesses. Managing loans for meeting short term liquidity – The corporate debt department is obsessed with the task of meeting short term liquidity as there may be situations where the company’s short term funds may get blocked in debtors, re