In reality, using debt not only meets the business needs of enterprises but is a strategic matter of corporate finance management in planning capital structure to achieve the goal of maximizing the value of the enterprise. Sometimes financial difficulties can lead to bankruptcy, but sometimes it just means the company is in difficulties, is temporarily in financial trouble.
At average debt levels, the probability of financial difficulties is negligible. However, at some point, financial difficulties will increase gradually when enterprises get into more debt. An enterprise uses debt also has financial risks. An enterprise with a high debt ratio sometimes falls into a state of lacking confidence, excessive caution when making investment decisions. This will cause the enterprise to easily miss good investment opportunities and go against the target of maximizing the enterprise’s value. Another problem with expending capital structure using debt is that the investment state is inefficient and the investment purpose is not maximizing the value of the enterprise. The obvious consequence is that enterprises will quickly run into difficulties in implementing debt obligations.
Financial management of the enterprise has been overlooked. The selection of funds meeting business needs is sometimes spontaneous, does not base on the basic principles of a modern financial management strategy. Because the investment is inefficient and improper in strengths and functions such as securities, real estate in the unpredictable and fluctuated situation of these markets, losses are difficult to avoid. As can be seen from the reality, the debt and bad debt situations of enterprises have been arising and difficult to control.
Financial solutions for enterprises
Vietlaw Solutions Firm with consultants and lawyers who have the extensive legal knowledge and many years of experience in the market will help the managers find the optimal way which will bring the enterprise to go through the crisis state in order to achieve sustainable development.
We offer solutions to restructuring for enterprises being in debt difficulties: strategic consultancy; consultancy on design, organization of departments; consultancy on setting up process system (management procedure, job description …); consultancy on internal management matters; development of personal development strategies; consultancy on management capacity.
In addition, we offer debt recovery solutions for corporate finance management to avoid risks because debt recovery is always a matter of enterprises and individuals. In order to enhance the production process, the debt recovery process is always one of the preoccupations with the heads of the enterprises. However, with debts that are hard to recover, the enterprise owner does not know how to handle them. One of the appropriate methods is through legal intervention.
Vietlaw Solutions Firm is not only a legal consultancy company with many experienced lawyers and legal specialists but also involved in solving many debt recovery cases for enterprises such as Finance MTV Home Credit Viet Nam Limited Company, Finance Prudential Viet Nam Limited Company, Asia Commercial Bank ACB… and for individuals.
Vietlaw Solutions Firm will study the debt dossier to find out the legal basis and debt data in order to be processed, assess the debtor’s ability to pay the creditor. We represent clients to contact debtors to negotiate, persuade, and demand repayment. We consult and guide clients to solve the most profitable and optimal solutions according to the law. Depending on the type, the characteristics of the transaction relations arising overdue debts, we carry out civil procedures, economic procedures, or criminal procedures at the law enforcement agencies.
With the advantage of skillful, experienced staff understanding the business environment, Vietlaw Solutions Firm always offers the best solutions in guiding clients in the legal system in Vietnam. We not only provide our clients with solutions and initial consultancy but also accompany clients during the process and after completing the application procedures relating to debt recovery, enterprise restructuring.
We believe that the clients will benefit from the extensive knowledge that our senior lawyers focus on. If there is any concern, please contact Vietlaw Solutions Firm.
Address: 90B Tran Quoc Toan, Ward 8, District 3, HCM City.
Hotline: 0902 868 117 – 0909 868 117