While business finance is a crucial aspect of the overall growth of most companies, managing the loan effectively and organizing EMI payments is of vital importance. Here are some tips for smooth business finance EMI payment management-

• Communicate with your lender- The lender should always be in the loop about any business profits/losses, turnover figures and other developments.

• Don’t miss EMIs- You should never skip your EMI payments since this will negatively impact the credit score while you will have to pay fines too. You should repay EMIs within the due date every month. In case that is not possible, reach out to your lender well in advance and agree on a minimum balance payable.

• Don’t pay late- You should refrain from paying the EMIs late since you will have to fork out added charges.

• Make timely pre-payments- With surplus funds, try and pre-pay the loan amount as much as possible. This will help lower the loan amount and reduce your overall interest outgo on the loan. The monthly EMIs will also reduce.

• Don’t lower EMIs after pre-payment- Keep the EMIs unchanged after pre-paying since this will help in clearing out the loan faster.

• Assess rates of interest- In case you are paying a high rate of interest, compare with other lenders and you can switch the loan if required.

• Don’t add more debt- In case you already have a business loan EMI calculator to handle, do not pile up any more debt. First repay this loan and then look for other sources of funding.

• Budget wisely- Have a budget for the month where the EMI payment is the first priority. This should not be compromised for meeting other expenses.

• Have an emergency fund in place which should have at least 2-3 months’ EMI amounts.​