The term settlement itself means that the borrower and the bank ends an argument or a litigation and reaches an agreement or a decision. The borrower should have a clear mindset that business and banking system are both complementary to each other. We offer a structured approach towards reaching settlement or compromise with the bankers and financial institutions. We believe in the philosophy of business rebirth and business engineering and hence suggest the following steps:
1. Buy time Legally:
The borrower should have a sound and fool proof legal strategy and also should be aware about all his rights as a borrower and the probable remedy available to him. A borrower should first safeguard the asset because it is that asset or resource through which he has generated business and paid his obligation to the banker over the years.
2. Strengthen your Business:
As stated above, it is clear that business and banking are complementary to each other and if the business survives, a borrower will be in position to repay the banker. Instead of half heartedly fulfilling its obligation by making payment towards interest, penal interest, overcharge, overdue interest to the banker and eroding its network, the borrower should first identify the true potential in its business, have a clear blueprint and roadmap, revamp and restructure his business potential and create resources from the already available goodwill to restart his business.
3. Settle with the Bank:
Once the borrower has identified the actual practical potential in his business, he should then aim towards settling his outstanding dues with the banker and the financial institutions. At NPA Consultants Pvt. Ltd., under the expert guidance of Dr. Visswas and our team of professionals, we apply logical mechanisms such as calculation of net present value, historical analysis of the business-banking relationship of a borrower and making the banker understand about the future revenue that could be generated from the same business, which will be in turn more beneficial for the exchequer clubbed with the long-term goodwill and relationship of our team and then consolidate into a proper systemic compromise settlement plan.
We have been instrumental in creating a win-win situation for the banker as well as the borrower which has not only saved the time value of money but also maximized the asset value of the borrower. We do not go merely by personal relations but back it with systematic and practical explanations and reasoning which is prudent for the banker also to close the outstanding NPAs and improve their books. This creates a huge opportunity for the borrower as once reasonable settlement is placed, his balance sheet of the company formidably improves and a huge potential for business is created.