The predictions for the Indian economy have taken a downslide. Business activities are zero, and COVID-19 infections are rising. In this scenario, managing credit becomes more critical. It requires taking risks into account for future planning. There is a need to find new opportunities. It also includes preparing yourself for post-pandemic success.

The spread of the virus has taken many countries in its grasp. Nations are struggling to find a foothold. The situation in India is no better. The infection was declared a global concern in January 2020. To date, 196 countries have been affected. The situation is grim. The forced lockdown has added to the financial woes, and the consequences are manifold.


The worst affected area is finance. Unemployment, layoff, and salary cuts are occurring across many countries. This situation calls for correctly managing finances.

How to manage credit and be efficient with cash flow

Cash is the main reason for the smooth running of all activities. Successful businesses collapse due to a crisis. Coronavirus is the biggest disaster in recent times. By forecasting and having a plan in place, companies can avoid emergencies.


Let look at some ways in which you can chalk out plans to deal with this unprecedented setback. 

1 –Organise your credit cards

You may have credit cards with you. However, it is wise to use them only in dire situations. Especially when times are tough in the COVID 19. Use your credit card solely for emergency reasons. Planned utilisation will push back payments to forty-five days. Swipe those cards only for essentials. Or us them for paying bills. This way, you pay less.

When you have a good credit history, it is beneficial. You can take advantage of a zero-cost EMI facility. This way, the down payment reduces to a minimum. Don't swipe the card for non-essentials and


Avoid credit card usage for non-essential items and lasting products.

2- Maintain some emergency funds


The virus is here for a long time. Plus, there is no clue about it going away. So, you have to put up with the lockdown blues. But with efficient management, you can pull through. The best idea is to have some funds at hand. You can keep aside a dedicated amount to meet six months' expenses. This tip works well. Hold this money in the bank account. You can also control the cash at home. Set aside this figure for rent, bills, grocery, and medicine.

3 – Release money from investments

This is the last resort. But you can use this fund to meet expenses in the lockdown period. Bear in mind to utilise this feature with great care. If you have some recurring deposits, pause the payments. You can resume after some time. If you have FDs, break the ones that offer lesser interest. This way, you suffer minimum losses.


The rates on some loan products have come down. So, you can release some funds to meet urgent needs. Examples are PFs and endowments policies. You can peek into open-end MFs and stakes.


4 – Workout an alternate income source


This is an ideal and trusted method. One or more ways to earn revenue can benefit you a lot. You can work on building more than one source of income. Use your knowledge and skills to set up options. This way, you are financially well off, even in a crisis.

5 -Think about working capital loan

You can meet shortages with a working capital loan. This borrowings can help you meet expenses in the short term. The biggest draw is you don't have to furnish security. This facility favours those who have small and medium business operations.


You can get in touch with lending firms. Sort term loans is a hassle-free process with easy documentation. Besides, you can take advantage of a process that is tailored to meet your requirements.


6 – Find out about monetary measures


As you are aware, the government has launched some steps to ease the situation. There are many easy schemes available. You can find out the details. Or talk to some experts. And find out what suits you best.


7 – Promote your brand


Make the most of this slowdown. Take to social media and promote your product or service. This way, you can reach out to more people. It can boost your business and bring in the revenue.

To wrap it up 

You have to stay safe and healthy. It is of paramount importance. At the same time, there should be an awareness of the monetary organisation. With discipline, you can walk through any situation. Every crisis that comes is here to teach a lesson. The same holds for COVID 19.

Work out on how much you are saving. Find out ways to cut unnecessary expenses. Chart out a course. The best strategy to adopt is the management of cash and credit.  


You have to concentrate on solutions to ease the situation. One option is to look for short term working capital. Consult firms that provide you with an opportunity to make more. Working capital allows you to meet immediate expenses. Plus, it comes at lesser risks and enabling business owners to stay afloat.