Faced with the economic downtime brought by the nation-wide lockdown, the demand for credit facilities has increased immensely. Organizations have witnessed hiring freeze in business and working capital. Around 66% of businesses are battling with the problem of cash crunch due to which the earlier credit facilities of 15 or 30 days does not seem an achievable and pragmatic target in these challenging times.
Sharply plummeted economic activities have given rise to the problem of the cash crunch. All the clients and customers are focussed on retaining their cash-in-hand and liquid assets at the moment. The decreased liquid asset availability has forced businesses to make delays in payments. This situation has led to a demand in the requirement of restructuring of payment schedules and extending credit limits for making these delayed payments.
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Considering the current circumstances and problems faced by businesses, we at Fox Cabs have come up with the strategy of providing an Extended Credit Facility to our customers in these challenging times.
Extended Credit Facility (ECF) is the financial assistance that we provide to our clients for concluding the outstanding payments. Its purpose is to provide payment flexibility to the clients. This facility is provided as per the individual client’s needs, as it plays a critical role in recovering the delayed payments while providing sustainable assistance to them.
The impact of the coronavirus is visible on the cash flows of businesses, as they have decreased tremendously. Maintaining working capital levels for keeping business running is only possible through cutting current expenditures. We, by providing our customers with Extended Credit Facility, are helping them in restructuring their payment schedules and giving leeway in payments.
The customers can avail the facility of extending their credit limits through which they can make delayed payments with flexibility. The duration of ECF is decided based on various parameters. Depending on the individual customer requirements, the credit facility can be increased from 15 to 30, 30 to 45, 60, or up to 90 days for paying off debts. For availing the ECF, the customers will have to register on our online platform and provide the required details, and their credit limits will be extended.
By providing the extended payables’ limits through the ECF, we are assisting our clients as their main focus during the current economic downtime is cutting costs and improving the working capital situation. We are providing them with a chance to avail of our services with immediate effect on their cash/liquid assets availability. The extended credit facility will help companies in maintaining the required working capital level without compromising with the functioning of business during these unprecedented times.
The extended credit facility is the need of the hour for most of the businesses currently. It is an innovative way of sustaining working capital and cash flows of business during this economically oppressive period. Providing an extended credit facility to our customers at this time will help them in sustaining and growing during these stringent times while utilizing their limited working capital on core business activities.