NPA Consultants helping MSMEs turn around debt crisis

India is primarily a nation where majority of business are Micro Small and Medium Enterprises (MSME). Almost 40 per cent of our exports come from this sector which contributes about 8% of the GDP.

According to rough estimates SMEs account for 110 million jobs and generate two and half million jobs every year. Some of the most fertile and brilliant minds have risen from the ranks of these enterprises. Growth of MSME is vital to our economy and yet today they are badly crippled by the poor policies of the banks and government.

Large numbers of MSME companies are plagued by their inability to repay the loans from banks and as a consequence stand to forfeit their business altogether. Though the banks are justified in recovering their money there is a greater need to look at the larger picture.

Instead of rushing in to liquefy the assets of the borrower, termed as the Non Performing Assets or NPA which may yield only 30-40% of the borrowed amount, banks can work upon a solution that would benefit the borrower, the bank and the economy all at the same time.

The Micro, Small and Medium companies that default on their borrowings from banks face closure and even lose their assets pledged as collaterals. NPA Consultants Pvt. Ltd. has been pioneering in assisting the MSME sector to achieve a turnaround from their debt crisis and guiding them on the means and methods to counter the situation.

The strategies employed by NPA Consultants are well within the ambit of the laws and give a new lease of life to the ailing companies by helping them restructure their business. Dr Visswas, CEO, NPA Consultants says, “Any company defaulting on its loan repayment for more than 90 days is considered to be a Non Performing Asset (NPA). After the statutory 90 days period the Banks/ Financial Institutions initiate the process of selling the mortgaged assets to recover the dues. By doing so, the Bank virtually cripples the day to day operations of the company by adjusting all monies deposited against their dues. Instead of extending helping hand to extricate the companies from the situation, the banks are essentially putting them out of business. The borrowers find themselves in a helpless situation and at the mercy of the Bank.”

Dr Visswas ongoing focus on reviving genuine NPA borrowers since a decade has helped many such MSME companies that have defaulted on their bank loans deal with the banks and work out a revival proposal by using NPA property as 3rd party security for an eligible borrower and developing a viable business proposal between the two.

The specialisation of NPA Consultants is in selection and structuring of right distribution channel, product positioning, designing strategy for pull or push process, management of working capital, ascertain value addition areas whereby finance can be raised from channel partners or through sound business propositions rather than borrowing money on interest. NPA consultants also provides sound marketing training, counselling for top management to enable strategic thinking and creating assured methods of raising finance as a deserving candidate instead of projecting the financial problems.