Asset Reconstruction Company (ARC) in India

It is estimated that up to 75% of unsuccessful businesses close down because of inability to tackle financial pressure, of either poor management or outright mismanagement of capital lent (for e.g., by using working capital loans to cover long term finance needs, then facing liquidity pressure), of pressure from banks who threaten penalties and legal action, pressure from private equity partners or public investors who demand to see increases in dividends or bottom line. And every so often it happens that when exposed to such a baptism of fire, with numerous creditors simultaneously demanding payment and several liabilities and obligations outstanding, unable to withstand the incoming demands from virtually every quarter, some businesses and entrepreneurs eventually crack under stress, and give up. To avoid such an unhappy end, it is helpful to know there are various options for businesses undergoing difficulties and that, if you are going through such a period yourself, it is not the end of the world. However, at such a high level, knowledge is power, and likewise, ignorance can be fatal. One must consider failure as a final but viewed temporary setback, a stepping stone to a more glorious future conquest and eventual success. But for this, there are some things in the world of business and finance that must be known, and an Asset Reconstruction Company is one of them.

Overview of an Asset Reconstruction Company (ARC)

An asset reconstruction company