the overdue bill. If you are facing difficulties in repayment, you should call the lender to make an arrangement. If you inform the lender about your problems, they are often flexible.
Be aware from whom and what type of loan you propose to avail. Generally, credit from non-banking finance companies carries higher interest rates and rigid terms and conditions. One must keep the outstanding debt as low as possible and avail of credit only when it is absolutely essential, keeping in mind the current and near-future cash cycles.
The writer in an associate professor of finance and accounting at IIM Shillong